It’s another win for BTG Pactual.
The firm has been voted No.1 for the fifth year in a row in Institutional Investor’s annual All-Brazil Sales Team. Based on the votes of 367 buy-side money managers at 239 firms with significant holdings in the country, BTG Pactual extended its reign to half a decade — even as the ranking saw a shakeup further down the leaderboard among domestic and global firms alike.
Itau BBA rose from last year’s fourth place to take second, while last year’s runner-up, Bradesco BBI, dropped one spot to third. Credit Suisse improved one spot to take fourth, while JPMorgan Chase — in a steep rise from 2022’s ninth place — rounded out the top five. In line with other II surveys, votes were weighted based on respondents’ commission spending in the region. An additional AUM-weighted leaderboard was also produced which mirrored the commission-based results.
The volatility in this year’s results was reflective of the tumultuous year investors experienced in Brazil, due to an election cycle in late 2022 and depressed market activity.
“Clients were a bit lost at the start of the year, given the change of government and the outlook ahead. People lost a lot of money betting on a more centric-approach government, and the reality was a bit different,” said Thiago Faganello, head of Brazil sales and partner at BTG Pactual. “But things changed recently and quickly, so tons of opportunities showed up and clients are now trying to stock pick the best names for this new cycle.”
Potential bright spots include the start of an easing cycle, with rates going down from August onwards, and the expectation of lower inflation figures for the rest of 2023 and 2024.
“Even with the stock market in Brazil up 8 percent year-to-date, the multiples are still cheap here, considering this better scenario and possible better numbers ahead,” Faganello said. “What differs us from the rest of emerging markets is exactly that. We are at the beginning of a positive cycle, with earnings revisions likely to happen, in a time that investors — especially foreign — are looking for new opportunities with lower exposure here. We have liquidity in Brazil, good democracy, good fundamentals, and we are still cheap in a relative way versus the other emerging markets.”
For BTG Pactual, this environment emphasizes the need to continue to deliver the best research advice. Faganello credited his sales team’s success to the firm’s partnership model, premium corporate access, and top alpha return ideas.
“As a partnership culture company, a salesperson at BTG does not only sell their main product such as research equity sales; we sell the whole bank: our investment banking division, private equity, asset, and wealth management,” he said. “We provide access to the whole bank structure, showing what are the main opportunities in all segments and areas.”
That gives each salesperson an “owner’s vision” with each client and a long-term approach. “What makes a top sales team is their capacity to work together as a group of partners, looking and addressing client’s main needs in a fast way, always delivering excellence and a much more centric approach,” Faganello concluded. “We are here for the long run, and so are our relationships. Staying close is always the name of the game.”
In addition to having the top-rated sales team, BTG Pactual also leads II’s All-Brazil Trading Team, based on the responses of 107 individuals at 93 firms.
Itau BBA ranked second for Brazil trading and execution, followed by Bradesco BBI in third. BofA Securities and UBS placed fourth and fifth, respectively.
