São Paulo, Brazil–based BTG Pactual is best known as an investment bank, but its hedge fund business is becoming a dominant force in the region, too. The firm, which grew assets by $2.6 billion in 2013 only to lose about $335 million the following year, is the largest asset manager in Brazil without a retail network and is reputed as having among the strongest emerging market expertise in the hedge fund industry. BTG Pactual manages its hedge funds, which are based outside Brazil and run by investment teams in London, New York, São Paulo, Rio de Janeiro and Hong Kong, through BTG Pactual Asset Management…