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Favorite Latin America Play: BlackRock’s Landers

If you’re optimistic that the global recovery is gaining momentum, you might want to take another look at Latin America.

Although Brazil is down about 9% over the past 3 months, Will Landers, who is senior portfolio manager for BlackRock’s suite of Latin America equity funds, thinks the momentum is about to change.

In fact, he’s so optimistic, he’s putting a lot of weight on Brazil in the BlackRock Latin America Equity Fund. Take a look at the weightings.

BlackRock Latin America Equity Fund
Country Weightings
Brazil – 69.3%
Mexico – 16.8%
Chile – 3.8%
Peru – 2.8%

However, Landers doesn’t suggest playing the EWZ . “You need to do stock picking; you can’t just buy Brazil overall,” he says.

That’s because for the past couple of quarters the government has moved to weaken the currency and reduce spreads. In turn, that has hurt some large cap stocks in Brazil – which make up the EWZ. (That's why it's down 9% over 3 months.)

Instead Landers says to look at “the exporters that benefit from the currency move.” And that he says is Vale .

In addition, Landers cites other tailwinds.

He likes the management team and thinks the stock is cheap. “Vale trades around 5 times earnings with a 3.5% dividend yield.” Also he says, the stock has under-performed other mining stocks. "I think it has some catching up to do."

And in case you're wondering, it looks like Landers is putting his money where his mouth is.

Following are the Top 5 Holdings of BlackRock Latin America Equity Fund (MDLTX)
1. Vale
2. Itau
3. Petrobras
4. America Movil
5. Companhia De Bebidas Das Americas
SOURCE: BlackRock as of 3/31/12






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Trader disclosure: On May 1, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long MS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX CALLS; Pete Najarian is long SBUX; Pete Najarian is long COP, SELLING OUT INTO BP TODAY; Pete Najarian is long PEP; Pete Najarian is long TXN; Steve Cortes is long MO; Steve Cortes is long PPH; Steve Cortes is long PFE; Steve Cortes is long XLE; Steve Cortes is short XLF; Steve Cortes is short SILVER; Steve Cortes is short EUR/JPY; Patty Edwards is long for clients HOF; Patty Edwards is long for clients CVX; Patty Edwards is long for clients PVH; Patty Edwards is long for clients QCOM; Patty Edwards is long for clients INTC; Patty Edwards is long for clients MSFT; Patty Edwards is long for clients COP; Patty Edwards is long for clients WLT; Patty Edwards is long for clients ACI; Brian Kelly is long SPY; Brian Kelly is long QQQ; Brian Kelly is long IWM; Brian Kelly is long KRE; Brian Kelly is long USG; Brian Kelly is long CAD; Brian Kelly is long TBT; Brian Kelly is long SOYBEANS; Brian Kelly is short GERMAN BUND; Brian Kelly is short YEN

For Fadel Gheit
Nothing to disclose

For Stacy Ragson
Bernstein currently makes a market in the following companies INTC
Bernstein currently makes a market in the following companies, QCOM
Bernstein currently makes a market in the following companies BRCM

For Will Landers
Will Landers is long VALE
Will Landers is long ITUB
Will Landers is long PZE
Will Landers is long AMX
Will Landers is long ABV

For Jon Najarian
Jon Najarian is long GRPN

For Steve Weiss
Steven Weiss is long X
Steven Weiss is long MT

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Symbol
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EBIX
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VALE'A
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