Brazilian investors can be mealy-mouthed on government issues, at least to the media, to avoid poisoning relations with policy makers. Not so one of Brazil's most respected investor voices, Luis Stuhlberger. In his latest report, he has underscored the damage that government policy is wreaking on prospects for stocks.
Room for manoeuvre on fiscal and monetary policies is limited and has been "substantially reduced" by policies in recent years, warns Stulhberger. He adds that the slowdown in tax collection and increase in spending represents a "significant challenge for the country". The fund is maintaining low exposure to Brazilian stocks, he says. For more, see this article in Infomoney (In Portuguese only http://www.infomoney.com.br/). This is all the more surprising as the Brazilian government is particularly sensitive to criticism of its macro policies with the run-up to next year's elections unofficially under way.
Stuhlberger has had a knack of identifying longer term trends in the economy and is co-founder of the Hedging Griffo brand where he runs the flagship Verde fund.