The Argentinian elections failed to provide a decisive outcome on October 25, adding another twist to a tumultuous year for the Latin American region.
With Brazilian politics also having come into the limelight over the past 12 months, the region as a whole has had its fair share of headwinds and headaches for investors.
Against this backdrop, Citywire Global has taken a closer look at the top-performing managers focused on Latin America. There are currently 61 managers with a three-year track record in the Citywire database, with the average of these having lost 43.26% from September 2012 to September 2015.
In this analysis, Citywire Global takes a look at the top three managers in this testing sector to uncover those with the strongest performance and those looking most able to navigate political changes ahead.
3. Julian Thompson, AXA IM
Fund: AXA WF Framlington LatAm
Total return (September 2012-September 2015): -37.12%
Highlighting how tough the market has been is the fact third-placed Julian Thompson has lost 37% over this timeframe but remains among the outperformers. Peru's largest financial firm, Credicorp, is currently the biggest holding in the AXA WF Framlington LatAm fund, accounting for 5.6% of the fund.
He also like the Brazilian drinks company AmBev, which makes up 5.17% of the fund. On a country basis, Mexico makes up 50% of the fund, which is an overweight of 12 percentage points. Brazil is the second largest country allocation at 38.91%, which is underweight by 8 percentage points.
Citywire A-rated Thompson’s biggest sector allocation is financials, which make up 37.5% of the fund. The consumer discretionary sector is the third largest at 15.98%, which is overweight against the benchmark of more than six percentage points.
2. Roberto Lampl, Alquity Investment Management
Total return (September 2012-September 2015): -31.09%
Alquity's Latin American investment head Roberto Lampl is the only manager who has allocations to Argentina in this line-up. He has 2.8% of the Alquity Latin America fund allocated to the country. In the latest factsheet, he stated that Argentina was one of the weakest equity markets as it declined by 17%.
His biggest country allocation is Mexico at 36.7% followed by Brazil at 21.5%. Although, in his latest commentary, Lampl said Brazil was also under-performing as it declined by 12%.
In terms of sectors, Lampl has 28.7% of the fund allocated to food and beverage firms followed by retailing at 11.2%. The largest holding in the fund is Grupo Bimbo, the Mexican multinational bakery product manufacturing company, at 6.6%.
1. Jose Zitelmann, BTG Pactual
Total return (September 2012-September 2015): -29.97%
Citywire AAA-rated Jose Zitelmann takes first prize with the performance of the BTG Pactual SICAV- Latin American Equity fund. He is the only manager on the countdown to have lost less than 30% over the analysis period.
At almost half the fund, Brazil is the largest country allocation at 48.7% followed by Mexico at 35.5%. He also has smaller allocations to Peru and Colombia. On a sector basis, Zitelmann has allocated 47.9% of the fund to consumer goods. The financial sector is the fund’s second largest holding at 17.8%.