Hedge funds are considering a number of Latin American countries as alternatives to investing in China on the back of ongoing geopolitical tensions and a slowing performance in the world’s second largest economy, according to a report by Reuters.
The report cites data from Goldman Sachs as revealing that many US-based hedge fund investors have cut their exposure to Chinese stocks as turmoil in the country’s property sector has rattled world markets
Robert Citrone, Discovery Capital Management founder and long-time investor in emerging markets, is among those who see opportunities in Latin America, particularly Argentina and Ecuador, where the results of presidential elections could drive asset prices up. He is also focused on Mexico.
Gustavo Ferraro, partner and head of capital solutions at Gramercy Funds Management meanwhile, favours lending to mid-sized Mexican companies, including those involved in power generation, real estate and logistics.
