Economics & Strategy– Equity Strategy: Second

After debuting in the runner-up position last year, Carlos Constantini’s seven-member Itaú BBA squad jumps to second place. Although Brazilian equities may be a bit cheaper, Mexico “is a lower-risk story, so it deserves that premium,” the São Paulo–based crew captain says. “We think it will continue to outperform.” They base their optimism — and their overweight rating — on Mexico’s strong ties to the recovering U.S. economy, President Enrique Peña Nieto’s compelling agenda of reforms, the country’s reputation for good corporate governance and its stable currency. The group also likes Chile, which has very strong fundamentals, Constantini maintains. “It’s seen as a very, very low-risk market,” he notes. “When we look at the smaller markets, it’s our favorite on a risk-reward basis.” The Itaú strategists are “broad thinkers,” according to one buy-side supporter. Constantini also pilots the team that ranks highest for coverage of Brazil. — Carolynn Koo