September 1, 2012
By John Rumsey
Mexico’s stock market has been the darling of investors this year. By early August its main index, the IPC, had climbed over 10% since January. In contrast, Brazil’s Bovespa had returned just 3.4% over the same period.
For much of the past year, Latin American investment funds have cut allocations to Brazil, and their average allocation to the country has dipped below 60% for the first time since the start of the crisis, according to Cameron Brandt, director of research at fund flow company EPFR Global.
But a number of influential fund managers are now turning bullish on Brazil, arguing that its markets offer good value amid what some now believe are improving growth p
A major shift is underway in Latin America’s investment landscape as fund managers reallocate profits taken from Mexico’s high-returning equity markets to holdings in Brazil