After an unprecedented year, what one word best sums up the equity markets of Latin America?
“Busy,” according to Carlos Sequeira, head of research at BTG Pactual. While the region as a whole was largely impacted both socially and economically by Covid-19, each country from Brazil to Chile reacted very differently to the pandemic. This is in part due to global monetary policy, as well as each country’s individual government stimulus plans.
With just as varied economic recoveries — despite virus surges — throughout the region, there is cautious optimism across the investment chain in Latin America. But another looming election cycle means there is no downtime for the region’s sell side — or their clients.
The relative attractiveness of Latin America equities has been building since last year, according to Pedro Martins Jr., head of Latin American equity research at JPMorgan Chase & Co. “This constructive view for global equities is backed by a global synchronized expansion, monetary and fiscal policy support, and fading risks,” Martins said. “The tailwind boosted China equities first, then U.S. equities, and now we believe it is time for Europe and emerging markets to outperform — notably, LatAm.”
As Latin America’s markets are buoyed, investors are looking to two equity research firms for investment ideas, according to Institutional Investor’s 29th annual Latin America Research Team survey...
To select the members of our 29th annual Latin America Research Team, Institutional Investor solicited opinions of directors of research and investment professionals at asset management firms with significant securities holdings in Latin America. We received responses from more than 640 individuals at 405 firms. The names of individuals surveyed are kept confidential to ensure their continuing cooperation.
This year, participants rated their top firms in each sector and then separately rated individual analysts or economists/strategists at those firms to create two distinct rankings for each sector. A numerical score was produced by weighting each vote based on the respondent’s Latin American commission range and the average rating awarded. This created the Commission-weighted Leader table rankings. The same scores weighted by each voting firm’s Latin American equity assets under management generated the AUM-weighted tables.
Using those scores, ranks were determined. Firms/analysts were designated runners‐up when their scores came within 35 percent of the third-place scores. For the analyst rankings, individuals who switched firms after February 22, 2021 are cited at their previous organizations.
Voters must meet eligibility requirements, and winners must achieve a minimum vote count. All ballots are subject to review by our Research Operations Group.
The 2021 Latin America Research Team was compiled by Senior Project Manager Tucker Ewing and Associate Project Managers Denise Best and Xiao Lu.