Early Election Trade Is Brewing for Latin America Investors
- Traders start positioning for possible regime change in region
- Hedge funds scoop up Brazil ETF options, Colombian bonds
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Growing discontent with left-wing governments is helping fuel a rally in Latin America, with traders scooping up assets at rock-bottom valuations on early bets the next wave of elections in 2026 will usher in more business-friendly regimes.
Investors at T. Rowe Price and Frontier Road Limited are placing wagers in Colombian stocks and bonds, taking advantage of extremely cheap prices. Some Brazil hedge funds, like Mar Asset Management, are building options bets that gain from stocks rallying.