LatAm TMT is a strong buy for Cyrte Investments

Naarden, July 19, 2011 - The Financial Times describes Cyrte’s launch of a fund to invest in Latin American TMT companies. The article refers to Cyrte’s earlier success with its Brazilian Telecom Fund, which generated a return of 53.9 per cent

by Vivianne Rodrigues

Premium Financial Times service TILT describes Cyrte’s launch of a fund to invest in Latin American TMT companies. The article refers to Cyrte’s earlier success with its Brazilian Telecom Fund, which generated a return of 53.9 per cent, and cites Fund Manager Peter van Rooyen stating his conviction in investment opportunities in Latin America:

"Brazil is like the poster child in terms of economic development in a controlled manner. Some of the drivers that helped transform the country in the past couple of years are also present in other Latin American economies," Rooyen said. "Higher economic growth will translate into more business activity and higher disposable income, which in turn will result in more TMT opportunities in the high and low end of the markets throughout the region."

Other reasons to be positive about Latin American investments are consumers' growing disposable income and initiatives such as the integration of the Colombian, Chilean and Peruvian exchanges that would help increase the liquidity and visibility of stocks to investors. Lastly, Latin American telecom stock for instance, still trade at lower multiples that global peers.

The Dutch-investment boutique is still committed to Brazil's TMT sector despite overall poor performance by Brazilian equities this year. After closing its Brazilian Telecom Fund and joining the IPO of entertainment company T4F, Cyrte is making a broader bet in the region with the launch of a Latin America fund.

Subscribers to Financial Times’ TILT services can read the entire article here.

Source: Financial Times, July 19, 2011