Investment funds take refuge in the winning stocks of the stock market

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The uncertain scenario caused by the renegotiation of the North American Free Trade Agreement (NAFTA) and the electoral process gave positive returns to investment funds that have taken refuge in companies listed on the Mexican Stock Exchange (BMV), according to BTG Pactual.

According to the investment firm headed in Mexico by the former governor of the Bank of Mexico, Guillermo Ortiz, the markets have discounted much of the volatility caused by the scenarios facing the country; However, major investment firms are waiting for the first messages from the elected president to analyze their medium and long-term strategies in the country.

"The market took into account both the election and the commercial landscape, and that's why the stock market index has been with the low yields so far this year." will depend on the announcements made to have a better market performance, "said José Miguel Garaicochea, managing director of the manager and portfolio of BTG Pactual Mexico.

"If the winning candidate leaves with a positive message, with a positive cabinet, a balanced and constructive budget, the market will react positively."

The executive explained that the company has designed an investment strategy of one of its leading business-focused funds with good market performance,

"All customers in the market are nervous about this scenario but the message that we want to convey to investors is that when you invest in quality companies, they have sound finances, generate cash flow., they generate a low level of debt, a price power on their products ", he explains.

"They are market leaders and that means that when the economy is doing badly, this type of business tends to be better than others. When the economy is doing well these companies are doing better. "

Thus, the Alfa BTG investment fund focused its strategy on the shares of Banorte, FEMSA, AC and OMA, and since its launch in January 2017 has offered 10.5 % back to his customers.

He explained that these companies, in which the fund is concentrated, maintain favorable behavior despite the uncertainty, in addition to having a positive outlook.

The resorts where we invest have a favorable outlook. We are seeing growth in the stations in which we invest 14% per year for the next three years and will depend on volatility if the fund's performance is higher or lower. We believe that once these past problems, the fund will outperform the market, "says the manager

BTG Pactual, of Brazilian origin, maintains an investment strategy in local companies in the countries where it operates.

] In the case of Mexico, the company has consolidated its growth strategy in the market for investment funds.