Thursday, September 21st, 2006
Driehaus’ 3 Hot Latin American stock picks
Bloomberg recently had an interview with Emery Brewer, the manager of Driehaus Capital’s Emerging Markets Growth Fund, on his big push into Latin America. His strategy is working: the fund is up 47 per cent in the past 12 months, making it the top emerging markets fund according to Bloomberg, and causing its assets to triple to $462m.
“Emerging markets have had a tremendous run, but I expect them to be volatile,” Brewer told Bloomberg. He says the success has been driven by a steady flow of IPOs, which he expects to continue thanks to strong economic growth in Latin America, particularly Brazil and Mexico.
Brewer’s three key holdings in the region have all listed in the past two years and posted strong gains. They are:
Grupo Aeroportuario del Pacifico SA, a Mexican airport operator
Brazil’s Localiza Rent a Car, the biggest Latin American car rental company
Gol Linhas Aereas Inteligentes, the biggest Brazilian airline
Some other interesting facts about the emerging markets fund:
- Brewer holds stocks for just four months on average, much less than the average emerging-markets fund, which holds for 14 months.
- It has a 3-year Sharpe ratio of 1.63
- Airlines and airports make up 4.7 per cent of its assets
Word Count: 189. This entry was posted on Thursday, September 21st, 2006 at 7:03 pm and is filed under Emerging markets, Richard Driehaus. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
