Igor Cornelsen Offers Advice on Investing in Brazil

Brazil has the eighth largest economy in the world, but recent economic issues that caused the country’s average annual GDP growth rate to drop below 2% has disappointed investors. Despite some economic setbacks, the country is rich in natural resources, is competitive in agriculture production, and it is one of the top food suppliers in the world. In addition to this, Brazil has a population of over 200 million people with a growing middle-class, so the country is poised for strong economic growth.

Brazilian banker and investment expert Igor Cornelsen has three important tips for those who are considering investing in Brazil. His first tip is for investors to connect with the Brazilian people through networking and building relationships. Brazilians like to socialize, and they are willing to give advice to those who are looking to do business in the country. 25% of Brazilians between 18 and 64 years of age are entrepreneurs, so making business connections shouldn’t be difficult.

Next, Igor Cornelsen advises investors to be prepared for Brazilian regulations. Brazil has a large government bureaucracy, high taxes, and complex regulations. He says it’s important for investors to understand these regulations so that they can make informed decisions. It is possible to financially succeed in Brazil if investors understand the regulations they are up against.

Igor Cornelsen’s final piece of advice to investors is they will have to understand Brazil’s foreign currency restrictions. This is important for the non-resident investor because they will have to find a bank that is authorized to work with non-resident investors. Investors also should make sure they are using the right currency rate for the right transaction.

Highland Small Cap Equity Fund Blows Past S&P 500 in 2016

Highland Capital Management’s small cap equity fund nearly tripled the gains of the S&P 500 in 2016. Michael Gregory, the chief investment officer of Highland’s alternative investors unit, placed big bets on energy stocks in 2016, and those bets resulted in 31.6 percent in returns. Highland Alternative Investors manages about $55 million in funds and oversees the fund with Highland Capital Management’s chairman and CEO, James Dondero.

 

Gregory is now focusing his attention on the once out-of-favor health care sector. In 2016, health care was the only sector that did not post a gain. Gregory believes health care is in for a “tremendous rebound,” and he is putting his money where his mouth is by placing 25 percent of Highlands’s small cap equity fund assets into the health care sector. Gregory states that the current opioid epidemic in the United States will lead to a huge bounce back in health care as more insurance companies start to address the problem.

 

Both Gregory and Dondero also like the multifamily real estate sector. The primary focus is on real estate investment trusts like NexPoint Residential and Realty Trust Inc. Gregory also likes the energy sector once again, and he and Dondero point out one pipeline operator with a dividend yield of 4.08 percent. Western Gas Equity Partners has strong sponsorship and the company is highly capitalized. Gregory and his Highland Small-Cap Equity Fund received four stars out of five from the mutual fund rating company Morningstar. Highland acquired the equity fund from GE Asset Management in 2010.