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Picking Winners In Brazil

Andrew Fisher
Friday, 18 Jul 2008 | 2:05 PM ET

Your search for many happy returns should take you south, according to John Chisholm of Acadian Asset Management. He recommends stocks in two large and thriving Brazilian companies.

Chisholm's Acadian Energing Markets Fund is up an average of 32.7 percent per year over the last five years.

Recommendations:

Topping his list is petroleum giant Petrobras.

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"Petrobras...has an expanding production base," he said. "They've drilled a lot of new wells offshore in Brazil, and...their production is expanding strongly...so they get the double-whammy of high oil prices and more production."

Chisholm also likes steelmaker Gerdau.

"Brazil's been growing strongly in the last few years, so there's a lot of demand for steel," he explained. "Gerdau's also got strong operations in North America, where they use a lot of scrap metal, so they're not as dependent on iron ... [whose] price has spiked up."

Disclosures:

Disclosure information for John Chisholm was not immediately available.

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