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Komfie Manalo, Opalesque Asia: Investors have been looking at the diverse investment landscape in Latin
America again, not only since Barack Obama's trip to Argentina last
week. Andres Baez, a partner and fund manager to two funds at LW Investment Management,
said at the recent Opalesque 2016 LatAm Roundtable that there are at
least three things professional investors do not compromise when
investing in Latin America. But the number one issue he is looking for
when assessing the potential for outperformance are triggers, he said.
Baez pointed to Argentina when he offered the following example for a
trigger: "We saw that in Argentina almost three years ago when the
Supreme Court ruled that Christina Kirchner could not get re-elected,
and that’s when we invested heavily in Argentina. We went up to 30% of
our portfolio in Argentinean corporate and sovereign debt."
The second issue that investors are interested for is the rule of law.
Baez said that the rule of law is tricky in Latin America. The important
thing is, especially when dealing with less-liquid investments, is that
investors do not compromise in the structure they want around their
investment. "If you cannot get the structure you want for your
investment, you’re out," he stated.
He added that while the rule of law might be tricky in Brazil, it is
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