The Fundamental Growth and Core Equity team’s research process focuses on five key attributes that are likely to lead to sustainable growth. Viewed through the lens of that research process, the Latin American ecommerce firms Magazine Luiza and Mercado Libre are two stocks to watch.
Stock performance dispersion is high in emerging markets (EM), and this trend has increased in an environment of slow global economic growth combined with high uncertainty caused by the COVID-19 pandemic. Companies that offer consistent, higher-than-average growth are valued at a premium versus the market.
The Fundamental Growth and Core Equity (FGC) team’s research process, which helps to identify these investment opportunities, focuses on five attributes of a company that are likely to lead to sustainable growth. These attributes are qualitative and forward-looking; our assessment is based on the expertise and judgment of our analysts and is therefore unique to the FGC team.