This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold, Silver in Peru Power Mutual Fund

Stocks in this article: BAP BVN LFL

NEW YORK ( TheStreet) -- Investors exploring Latin American equities may want to start their search in Peru, says Heiner Skaliks, manager of the Strategic Latin America Fund (SLATX). His top Peruvian picks include Creditcorp (BAP) and silver miner Buenaventura (BVN).

The mutual fund, launched a year ago, has returned 8% over the past year, according to Morningstar (MORN). The Strategic Latin America Fund is little changed this year.

Welcome to TheStreet's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format.

Why is Peru your favorite Latin American country to invest in now?

Skaliks: They have a good monetary policy and they have also made significant positive changes in their fiscal policy. They have a strong internal consumption base, which is benefitting from their exposure to the increasing price of commodities, especially gold and minerals.

Why is Creditcorp your favorite Peruvian stock, with a plethora of mining companies to choose from?

Skaliks: Creditcorp is one of the largest financial holding corporations in Peru. They also have operations in Bolivia. They have a commercial bank in their portfolio, as well as an asset manager and an insurance company. They have great managers who understand the market and what their customers need. They grew earnings 46% in the first quarter, and they still have room to tap the rest of the population that does not have access to financial services.

Why is Buenaventura your favorite Peruvian mining company?

Skaliks: Buenaventura is one of the largest mining companies in the world and the largest silver mining company in South America. Their operations are very efficient and low cost. They grew 86% in the first quarter year-over-year. And depending on what turn gold takes as a refuge to a weakening dollar, there is potential there as well.

What happens if Chinese demand for commodities slows?

Skaliks: There would definitely be a significant slowdown as far as the commodities market is concerned. That said, consumption in South America is much wider, deeper and stronger than it has ever been and that would help fend off severe adverse conditions created by an external shock from China, for example.

Outside of Peru, why are you so positive on Chile's LAN Airlines (LFL)?

Skaliks: Last year they acquired TAM Airlines, which is based in Brazil. They already have operations in Peru, Argentina and Ecuador. And this new acquisition gives them an opportunity to penetrate the Brazilian market more aggressively. The population of South America is over 600 million people so there is tremendous potential there to increase passenger and cargo traffic.

-- Reported by Gregg Greenberg in New York.

Readers Also Like:

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs