Administradora Fondos Pensione (NYSE:PVD)

CAPS Rating: 5 out of 5

A company in the Chilean Pension Fund Industry, provides pension fund management and related services throughout the country and has invested in similar companies in Peru, Ecuador, Mexico and the Dominican Republic.

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Player Avatar dirtcitymillions (< 20) Submitted: 3/1/2011 8:08:05 PM : Outperform Start Price: $50.00 PVD Score: +18.70

A hedge fund in Chile. First, they are not as regulated (now) as the now extinct versions of bear stearns and goldman sachs. The american Fed has been printing money, core inflation is going up along with oil, food and commodities here in the U.S. Much like Canada, Chile is resource rich. When resources increase, cash is infused into their economy. PVD is diversified across Latin America which decreases risk. I imagine the hedge fund would have enough insight to hedge out of core inflation in Chile. the target customers are extremely wealthy, and rich stay rich. Market cap just over 1 billion with the Latin America emerging markets just taking off. Still cash rich even paying divi over 7% . A hedge fund in an epicenter of commodities that also manages individual wealth diversified in 3 Latin America countries that trades around an 8PE with a growth rate above 20% and no long term debt, survived the "credit crisis".... what is not to like? Risks are mainly political and currency based, but i believe the very nature of their buisness negates the currency risk somewhat.

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