This Day On The Street
Continue to site
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

Best of Brazil: Ultrapar, Petrobras and Bradesco

NEW YORK ( TheStreet) -- A slate of better-than-expected economic reports in Brazil should calm inflation fears and boost stocks this summer, says Nick Robinson, manager of the Aberdeen Latin America Equity Fund (LAQ). Among Robinson's favorite Brazilian picks are Ultrapar Holdings (UGP - Get Report), Petrobras (PBR - Get Report) and Banco Bradesco (BBD).

The $287 million closed-end fund, which has recently been trading at a 9.9% discount to its net asset value (NAV), has seen its price rise 7.2% over the past year. The NAV of the fund has risen 6.2% over the same period. The fund doesn't employ leverage and generates an annual distribution rate of 4.8%.

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 are you confident about the trajectory of Brazilian stocks this summer?

Robinson: We could be in for a slightly better phase for Brazilian stocks as one of the main worries that the market has had recently has been over inflation, and potentially that Brazil was going suffer from another inflation problem. More recently, there has been some good economic data that suggest this problem isn't going to arise. And with that concern gone, Brazilian equities can start to perform a bit better.

Has Brazil finally decoupled from the U.S. and coupled with China?

Robinson: There's a certain amount of that going on. China recently became Brazil's top trading partner so Brazil's link with China is more important than the link with the States. But the U.S. is still a very important trading partner to Brazil, so the health of the U.S. economy is still quite important.

The banking sector in Brazil is certainly on the rise. Why is Banco Bradesco your favorite Brazilian financial?

Robinson: We like Bradesco because it's a good way of playing the growth of domestic demand in the economy that's driven by the growth of the middle-class consumer. As more consumers get jobs, enter the middle class, make bank accounts and take out loans, it really powers that bank's earnings. And Bradesco is a very well-operated, high-quality lender with a good history of lending through the cycle, which is particularly important when looking at banks in Brazil.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBD $7.05 0.00%
LAQ $18.75 0.00%
PBR $7.07 0.00%
UGP $20.29 0.00%
AAPL $93.24 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs