Fernando Ferreira, Isabella Simonato & team Bank of America Merrill Lynch First-place appearances: 1
Total appearances: 14
Team debut: 1997 Bank of America Merrill Lynch captures second place for a fourth year running. Under the direction this year of Fernando Ferreira and newcomer Isabella Simonato, the three São Paulo–based researchers keep tabs on 20 companies and plan to expand their coverage before year’s end. They added Cía. Cervecerías Unidas to their sector portfolio in May 2013, assigning the Chilean beverages producer and bottler an underperform rating. BofA Merrill’s analysts warned investors that competition from Brazil’s Cia. de Bebidas das Américas, or AmBev, was increasing in CCU’s home market; the company had high exposure in Argentina; and its valuation provided little upside. Indeed, by late July, its American depositary receipts had slumped 27.2 percent, to $22.73, lagging the sector by 23.2 percentage points. Looking ahead, Ferreira says, the team generally favors the food space over beverages. “The food sector is benefiting from lower grain prices, weaker currencies and company-specific turnaround stories that should support valuations,” he explains. He and Simonato this year also co-captain the No. 2 crew in Agribusiness.