January 4, 2016
Interviewed by: David Snow
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Plunging Valuations in Brazil Mean Opportunity

Turmoil in Brazil will bring asset valuations down even further, says Carlos Garcia of Victoria Capital. However, with the largest economy in Latin America, it’s going to be possible to find good opportunities in the country.

Turmoil in Brazil will bring asset valuations down even further, says Carlos Garcia of Victoria Capital. However, with the largest economy in Latin America, it’s going to be possible to find good opportunities in the country.

Plunging Valuations in Brazil Means Opportunity
With Carlos Garcia of Victoria Capital

David Snow, Privcap: Today we’re joined by Carlos Garcia of Victoria Capital. Carlos your firm is active in Brazil.

Carlos Garcia, Victoria Capital: Yes it is.

Snow: What’s your analysis there? Are you not bullish or do you feel like there will continue to be opportunities over the next few years to invest?

Garcia: Well Brazil clearly is going through a very difficult period. I mean not only because of macroeconomic conditions related to commodities and capital flows, but most importantly because it’s going through some political turmoil or crisis you know. So I think that it’s very difficult to predict what is going to be the end of the story, and when we are going to reach the end of the story. So I think that we’re going to see more volatility, and in my opinion you know, we’re going to see more, perhaps a little bit more of decline in values in the assets in Brazil. Having said that you know, Brazil is such a large economy, is such a diversified economy, that it is impossible not to find good opportunities you know, along the ride. I mean what is critical is that you need to be disciplined, because we are in a volatile environment, and you never know when you hit the bottom. And you know, asset prices in my opinion should come down even further. So I believe that the opportunities are there, but you need to be disciplined and pull the right trigger you know.

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