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Opportunities in Latin America

Many central banks in Latin America have bit the bullet quicker than most developed economies. They raised interest rates quickly in 2022 to crush rising inflation and economic data seems to suggest that they will emerge out of this in better shape. This means there are exciting investment opportunities for investors.

The continent boasts one of the world’s youngest demographic profiles (~20% of the overall population (106 million) people are between 15 and 24 years old) and is self-sufficient in terms of resources and trade.

With regionalisation and a fragmented geopolitical world order, Latin America may shine as economic fundamentals bear their influence on their financial markets. 

To us, the way to play this is through a technology company that can benefit from this young demographic and ride on the economic growth of the continent.

The Argentine e-commerce company Mercado Libre (MELI) came out in our research. It operates across many Latin American countries and local markets. Its valuations have derated last year, and it’s run by forward-looking talented leaders with skin in the game (Marcos Galperin, Stelleo Tolda etc).

We think that this company allows us to leverage off all the positive, structural factors of Latin America that excite us as long-term macro investors. 

Many central banks in Latin America have bit the bullet quicker than most developed economies. They raised interest rates quickly in 2022 to crush rising inflation and economic data seems to suggest that they will emerge out of this in better shape. This means there are exciting investment opportunities for investors.

The continent boasts one of the world’s youngest demographic profiles (~20% of the overall population (106 million) people are between 15 and 24 years old) and is self-sufficient in terms of resources and trade.

With regionalisation and a fragmented geopolitical world order, Latin America may shine as economic fundamentals bear their influence on their financial markets. 

To us, the way to play this is through a technology company that can benefit from this young demographic and ride on the economic growth of the continent.

The Argentine e-commerce company Mercado Libre (MELI) came out in our research. It operates across many Latin American countries and local markets. Its valuations have derated last year, and it’s run by forward-looking talented leaders with skin in the game (Marcos Galperin, Stelleo Tolda etc).

We think that this company allows us to leverage off all the positive, structural factors of Latin America that excite us as long-term macro investors.