2015 All-Latin America Research Team: Metals & Mining, No. 1: Leonardo Correa, César Pérez-Novoa & team
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2015 All-Latin America Research Team: Metals & Mining, No. 1: Leonardo Correa, César Pérez-Novoa & team


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Leonardo Correa, César Pérez-Novoa & teamBTG PactualFirst-Place Appearances: 1

Total Appearances: 8

Team Debut: 2007Improving on its third-place performance last year, BTG Pactual rises all the way to the top, recording its first No. 1 finish on this roster with a group under the direction of César Pérez-Novoa, who is stationed in Santiago, and São Paulo–based Leonardo Correa. Pérez-Novoa, 43, was head of Chilean equity research at Celfin Capital when BTG acquired that firm, in November 2012, and last year he debuted as co-leader of this squad, with Edmo Chagas. Before Celfin he worked as an equity analyst at BBVA’s investment banking unit in Peru, covering mining companies and the capital goods industry, and holds a bachelor of science degree in finance from Boston College. Co-head Correa moved to BTG from Barclays in May 2014, to replace the retiring Chagas. The 32-year-old guided his previous firm’s crew to a runner-up position on this lineup in 2011 and 2012 and earlier tracked the sector for Credit Suisse. He earned a bachelor’s degree in economics from São Paulo’s Instituto Brasileiro de Mercado de Capitais. This year the duo also oversees a squad that repeats at No. 2 on the Pulp & Paper roster. In addition, as he did last year, Pérez-Novoa also co-captains, with Alonso Aramburú, crews that capture first and second place, respectively, for their coverage of Chile and North Andean Countries. BTG’s four Latin America metals and mining analysts, one client says, “possess a deep understanding of the industry and access to managements across the region.” Reporting on eight stocks in the sector, they recently turned more cautious on Brazilian miner Vale — which fund managers appreciated. Last August they noted that iron-ore prices were soft as a result of supply growth from Australia, prompting the team to lower its rating, from buy to neutral, on the world’s largest producer of that raw material. By mid-July, Vale’s American depositary receipts had been pummeled, dragged down in part by the wider rout in commodities. The ADRs plummeted 58.3 percent, to $5.46, which was worse even than the regional sector’s decline of 36.3 percent over the same period. A bright spot, on the other hand, is evident in Brazilian steel-making giant Gerdau, the researchers believe. They maintain a buy rating on the stock and a price objective of 12.50 reais, crediting the manufacturer’s unused but easily ramped up capacity. Gerdau closed at 5.50 reais in mid-July.

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