Total Appearances: 24
Team Debut: 1993
Pedro Martins Jr. shepherds his four-strong J.P. Morgan crew to a repeat second-place finish. He has a good overview of the economy and its effect on the equity markets, reports one fund manager. Its always useful talking to him to get new perspectives. Martins and his colleagues are convinced that emerging-markets equities should outperform their global peers, but they are not quite bullish on Latin America. While noting that rising U.S. Treasury yields have been positive for the region and projecting that the prevalence of negative earnings revisions in the area will abate, they caution that Latin Americas stocks are trading at a premium to those of other emerging markets. Current multiples offer little cushion for earnings downgrades, and superior earnings growth and/or lower risk perception are likely necessary to sustain such a valuation premium, explains the 42-year-old crew chief. There is little visibility on this at this point. An exception to this overall view is Mexico, which the team whose members are posted in Mexico City, Santiago and São Paulo recommends that investors overweight, citing the countrys accelerating economic growth and foreign currency resilience. J.P. Morgans strategists also tout Peru, thanks to the nations above-average expansion and position as a cost-competitive commodities producer, Martins says. At a sector level, he adds, they favor financial services providers, as economic momentum becomes an important driver of credit conditions; and industrials names, specifically cement and infrastructure companies.