by Ben Miller
Keeping the Faith
May 1, 2012
Volatility has complicated life for the equity buyside and dented market performance in the past year. Long-term investors are still sticking to the consumer demand story.
Latin American stocks have continued to suffer from the developed world’s risk-off attitude during the last year. Though there has been something of a rebound so far in 2012, volatility is expected to continue. Investors, however, are still optimistic. As with previous instances of risk aversion, they used the dip in the second half of last year to add to their positions in the region.
Despite recent noise about inflation, currency wars, and other macro-prudential measures, many are still bullish about the domestic trends in Brazil, the market accounting for the great majority of the equity investment opportunity in the region.
“The domestic growth story is still very much intact,” says Will Landers, senior portfolio manager at BlackRock, which has $1.56 trillion in equities under management. BlackRock’s BSF Latin American Opportunities Fund returned 58.86% in the three-year period to March 31, the most among LatAm equity...
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