Latin American equity funds are vanishing, dropping from over 660 in 2015 to just 226 today. The decline reflects a region plagued by stagnation, low growth, and lack of innovation. Veteran investor Scott Piper, now managing $5 billion at Itaú Unibanco, calls it a lonely profession.
The MSCI Latin America index remains 40% below its peak, hit hard by Brazil’s recent election shock. Only two IPOs in Mexico and Brazil raised over $500 million in the last five years, compared to 26 in the U.S. alone. Claudia Mesquita of UBS calls it the worst market cycle she’s seen.
Despite brief optimism, Lula’s re-election triggered a market collapse, with some stocks falling over 60% and triggering trading halts. Even bullish investors like Will Landers are reevaluating the asset class.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing