Emerging-market equities rallied a third month in the longest stretch of gains since 2010 as China’s rebounding economy and signs of an improving global outlook bolstered financial and industrial stocks.
The biggest threat to a revolution in emerging market trade may be the emerging markets themselves as Brazil slaps import curbs on Chinese toys, Russia claims China dumps cold-rolled steel and China keeps its currency undervalued.
Colombia, Latin America’s murder capital when Pablo Escobar ran the Medellin drug cartel in the 1980s, produced the region’s best risk-adjusted stock returns over the past decade as improved security bolstered economic growth and foreign investment.
Adecoagro SA, the agricultural company that counts George Soros as its biggest investor, is giving potential buyers the chance to get a hold of farms in Brazil and Argentina at a 36 percent discount to its net assets.
Brazilian stocks are likely to continue their advance over the coming year as President-elect Dilma Rousseff is expected to maintain the outgoing government’s policies, said Ed Kuczma , an emerging markets analyst at Van Eck Associates in New York, which manages $21 billion. The benchmark Bovespa index has risen 21 percent from a May 20 low.
Natura Cosmeticos SA , Brazil’s biggest cosmetics maker, trades at the highest premium to the Bovespa index since 2008. Thornburg Investment Management’s Lewis Kaufman says he’s been buying as economic growth picks up.
Institutional investors frozen out of a share buyback by state-owned VTB Group decried the plan as a ploy by Russian Prime Minister Vladimir Putin to gain votes in a March 4 election from the bank’s smaller shareholders.