Wednesday, November 25, 2009

Brazilian Broker Launches Rio2016 Fund: Companies That Will Profit From The Olympics

Petra, a Brazilian brokerage and asset management firm, will launch in the coming months an equity fund focused on the Olympics in 2016. The fund - which will probably be named "Rio 2016" - will invest in securities of companies that should benefit from the investments to be made to Rio de Janeiro to host the Games.

The stock portfolio is not yet defined, but should include roles such as airlines, car rentals, logistics (ALL and Log In are the highest rated) and steel, said Ricardo Binelli, director of Petra.

"Builders which have land in Rio as Cyrela, Brascan and Gafisa, can also win," he says. "It is true that, ultimately, almost all businesses benefit indirectly from the Games - for example, the consumption of food is growing, because there are more tourists etc.. But there are sectors where the benefits are more evident," he said.

To Binelli, it is not too early to start investing in shares of these companies. "Business begins long before the event itself, with the visits of businessmen and sponsors to the country, for example," he says. But he considers that the bulk of the valuation is expected in a few years. "We have looked at putting a minimum holding period to emphasize the long term character."

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