Copernico Capital Partners, the specialist Latin American fund manager, has launched the Advance Copernico Argentina Equity Fund.
The fund, a Cayman domiciled OEIC, is the first actively-managed, long-only fund of Argentinean equities. The Fund invests in value opportunities with the intention of outperforming the local MERVAL Index. It is not offered to US investors.
The Argentine economy is one of the largest economies in Latin America, second only to Brazil. With an educated work force (97% literacy) and a member of the G20, Argentina has a substantial middle class (GDP per Capita is c.$9,000). Despite strong growth in the economy over the last decade, Argentina’s capital markets have become marginalised as a result of political and sovereign crises and self-imposed capital controls. In 2010, Argentina was reclassified by MSCI as a Frontier Market.
Ricardo Maxit (pictured), CEO of Copernico Capital Partners says: “We believe the current situation in Argentina provides an opportunity for investors to earn outsized returns through a focused investment program. Companies are trading at a significant valuation discount to regional peers; the Argentinean Peso is amongst the most undervalued currencies in the world. Also, there is strong and continued demand for Argentina’s agricultural exports and an election will be held in October 2011, at which a change of leadership is a real possibility.”