Bruno Giardino Santander First-place appearances: 0
Total appearances: 2
Team debut: 2013 Santander’s Bruno Giardino advances from runner-up to seize third place on this list. Working out of São Paulo, he reports on four Brazilian education players and plans to add two names this year. Giardino sees a perfect alignment between demand and offer in this sector — a match made in investors’ heaven. “From the demand side, Brazil’s recent economic growth and the support of the federal government have opened access for low- and mid-income populations to higher education,” he explains. Penetration has been historically low: As of 2012 only 17 percent of Brazilians between the ages of 18 and 24 years were enrolled in a higher education course or held a degree, adds Giardino. “From the offer side, the listed education companies have expanded their operations, both organically and through M&A, and improved their execution capabilities, thus favoring organic growth. Considering the still-low penetration of higher education among Brazilians and the still-fragmented profile of the industry, I foresee sustainable growth for companies that have solid execution, reputable brands and decent quality standards,” he sums up. His long-standing favorite in the group is Minas Gerais–based Kroton Educacional, which operates in the primary through postsecondary segments of the market. The shares soared 85.9 percent over the 12 months through July, climbing to 60.42 reais and besting the broad market by 84.3 percentage points. Giardino forecasts a further rise to 72.50 reais.