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From Sagar Chakraverty, Opalesque Asia:
As China is the gateway to Asia for investors, Brazil is the one in Latin America. Latin America showed better endurance during the financial crisis than other countries. Increasingly, investors have realized that this region, and especially Brazil, is evolving as a hot investment destination, and proximity of managers to Latin American markets is equally important now as it is to Asia.
Data from Eurekahedge showed that Latin American fund managers have doubled their market share of total assets managed worldwide, from 2% to 4%. Mining and commodity funds led the change.
The HFRX Latin America Index returned 46.9% in 2009 but was down 28.99% in 2008, and is currently down 2.19% YTD (to end-Feb). Comparatively, the Eurekahedge Latin American Hedge Fund Index returned 26.94% in 2009 but was down 4.71% in 2008, and is up 0.24% YTD (to-end Feb).
Charles Ferraz, the CIO of Itaú Private Bank (the largest private bank of Brazil), believes that going forward, the fiscal discipline of the last few years will bring rich dividends in coming years. He predicts a growth rate of 6% this year for Brazil and other Latin American countries are also expected to grow faster. A strong entrepreneurship spirit combined with a push for democracy in the region, has created a conducive environmen...................... To view our full article Click here
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