Schroders Hits the Brakes on Brazil State-Run Firms Before Vote
- Banco do Brasil in August gained most since Bolsonaro election
- Money manager favoring names that gain from inflation peaking
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Schroders Plc has trimmed its exposure to Brazilian state-controlled companies following a sharp rebound in shares, taking profits ahead of the October presidential election.
State-owned enterprises were “pricing in an overly very negative electoral scenario” earlier in the year, trading “excessively cheap,” Pablo Riveroll, head of Latin American equities at Schroders in London, said in an interview. Following recent gains and with the vote lowering investor visibility, “we’ve reduced our exposure,” Riveroll said.