< The 2015 Latin America Research Team
João Carlos dos Santos & teamBTG PactualFirst-Place Appearances: 4
Total Appearances: 6
Team Debut: 2008For a fourth straight year, João Carlos dos Santos, 35, guides his BTG Pactual trio in São Paulo to the top spot. Clients single out for praise the analysts’ coverage of Brazil-based OdontoPrev. They elevated their rating on the dental care services provider from neutral to buy in January 2014, largely thanks to earnings momentum, then lowered their stance back to neutral in March 2015, citing valuation as well as Brazil’s rising unemployment and deteriorating consumer confidence. During that period, OdontoPrev’s stock leaped 23.9 percent, to 10.84 reais, besting the region’s health care shares overall by 39.5 percentage points. Subsequently, through mid-July it climbed 1.5 percent further, to 11 reais, while the sector was flat. “J.C. and his team have been remarkably helpful keeping us up to date in uncertain times and are always available for last-minute phone calls,” applauds one investor. Another Brazilian company, Qualicorp, is a long-standing favorite among the five companies in the researchers’ sector portfolio. Although the health insurance and benefits broker’s stock tumbled 21 percent during the 12 months through mid-July, closing at 21.33 reais, it bested its regional peers by 5.9 percentage points and was still up 42.2 percent from its July 2013 low. Over that two-year period Latin America’s health care shares gained just 2.7 percent. BTG’s team believes that a price of 29 reais is justified and continues to recommend buying the shares. Qualicorp’s operational improvements are still not priced in, they reason. Moreover, recent cancellations of unprofitable contracts have “started to show positive results,” adds dos Santos.
