Vinícius Andrade, Bloomberg News

SAO PAULO
Energiesnet.com 08 09 2023

Vinícius Andrade, Bloomberg News

A group of executives that spent decades working together at Credit Suisse Group AG is starting a new asset manager in Brazil, seeking opportunities in Latin American stocks after years of underperformance. 

Emerson Leite, a former managing director at the local unit of the Swiss bank, Edward Weaver, who worked at Credit Suisse between 1994 and 2016, and Luiz Otavio Campos, a former equity-research analyst at the bank, are launching CapSigma Investment Partners. Marcelo Andrade, who previously worked at local asset manager Miles Capital, is also a founding partner at the Sao Paulo-based firm. 

“The underperformance in Latin American shares during the past decade had some investors fleeing, but we see an opportunity,” said Leite, who had a 23-year stint at the bank, including as head of Latin American equities. “Our team has worked together for many years, and we have an edge on the region.”

The MSCI Emerging Markets Latin America Index is trading at around 9 times blended-forward earnings, well below its 10-year average of 12 times, after the region was hit by a combination of pandemic, tepid economic growth and political turmoil. The regional stock gauge is up 15% this year, trouncing its developing-nation benchmark. 

CapSigma is planning to launch its first equity fund in September, just as central banks across the region embark on a campaign to lower interest rates. Brazil and Chile delivered bigger-than-expected rate cuts over the past two weeks, with countries including Colombia and Mexico forecast to start easing monetary policy in the coming months. 

On top of the expected boost from lower rates, the region should also benefit from structural tailwinds, according to Weaver. 

“The nearshoring is creating an investment boom in Mexico, while Latin America can also benefit from the energy transition and digital transformation,” he said. 

Leite, Weaver and Campos left the bank well before UBS Group AG acquired it in a deal brokered by the Swiss government earlier this year, leading to the departure of several executives. 

–With assistance from Srinivasan Sivabalan.

bloomberg.com 08 08 2023