Capital Ideas Podcast Exploring Latin America: Local knowledge key for Mexico - Part 1
Jul 8, 2025
Ana Reynal, an equity investment analyst at Capital Group with 15 years of experience in Latin America and roots in Mexico, shares fascinating insights into investing in the region. She highlights the critical role of local knowledge in navigating Mexico's investment landscape. Discussion points include the growing U.S.-Mexico economic interdependence, especially in manufacturing, and the impact of USMCA on shifting supply chains. Reynal also tackles the complexities of U.S.-Mexico relations, including economic, immigration, and societal challenges.
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Latin America Investment Universe
- The Latin American equity investment universe has over 1,100 listed companies but only about 200 are investable due to size and liquidity constraints.
- Brazil dominates with half the market cap, followed by Mexico with about a quarter, emphasizing market concentration.
Marrying Cyclicality and Long-Term Growth
- Prioritize companies with long profitable growth runways despite market cyclical swings.
- Combine deep company research with macro and political analysis for better long-term investment outcomes.
Value of Local Knowledge
- Maintain frequent local presence and build strong relationships to gain insightful cultural and political understanding.
- Use boots-on-the-ground research to identify early economic, social, and political trends impacting investments.