Notes from the Road: Emerging Markets1 – Brazil 2024

A company visit to MercadoLibre, Inc. We were back in Brazil this June for the first time since early 2019. Making site visits and meeting with management teams helps us gain valuable insights and build a deeper understanding of businesses; such interactions form a critical part of our analytical process.

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1Guardian Capital LP is providing, with permission, this market commentary, which was authored by GuardCap Asset Management Limited. GuardCap Asset Management Limited is a subadvisor to, and a subsidiary of Guardian Capital LP. GuardCap specializes in managing concentrated, bottom-up, strategies constructed on an “index-agnostic” basis for global equity and emerging market equity strategies.

For definitions of any financial terms used in this commentary, please refer to our Glossary of Financial Terms.

This commentary is for informational purposes only and does not constitute investment, financial, legal, accounting, tax advice or a recommendation to buy, sell or hold a security. It shall under no circumstances be considered an offer or solicitation to deal in any product or security mentioned herein. It is only intended for the audience to whom it has been distributed and may not be reproduced or redistributed without the consent of Guardian Capital LP. This information is not intended for distribution into any jurisdiction where such distribution is restricted by law or regulation.

The opinions expressed are as of the date of publication and are subject to change without notice. Assumptions, opinions and estimates are provided for illustrative purposes only and are subject to significant limitations. Reliance upon this information is at the sole discretion of the reader. The opinions expressed are as of the published date and are subject to change without notice. Assumptions, opinions and estimates are provided for illustrative purposes only and are subject to significant limitations. Reliance upon this information is at the sole discretion of the reader. This document includes information concerning financial markets that was developed at a particular point in time. This information is subject to change at any time, without notice, and without update. This commentary may also include forward-looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Investing involves risk. Equity markets are volatile and will increase and decrease in response to economic, political, regulatory and other developments. Investments in foreign securities involve certain risks that differ from the risks of investing in domestic securities. Adverse political, economic, social or other conditions in a foreign country may make the stocks of that country difficult or impossible to sell. It is more difficult to obtain reliable information about some foreign securities. The costs of investing in some foreign markets may be higher than investing in domestic markets. Investments in foreign securities also are subject to currency fluctuations. The risks and potential rewards are usually greater for small companies and companies located in emerging markets. Bond markets and fixed-income securities are sensitive to interest rate movements. Inflation, credit and default risks are all associated with fixed income securities. Diversification  may not protect against market risk and loss of principal may result. Certain information contained in this document has been obtained from external parties, which we believe to be reliable, however, we cannot guarantee its accuracy.

The securities identified and described do not represent all of the securities purchased and sold in the Guardian Emerging Markets strategy. There can be no  assurance that the portfolio will continue to hold the same position in companies referenced here, and the portfolio may change any position at any time. The reader should not assume that an investment in the securities identified was or will be profitable. Investing involves risk, principal loss is possible. By concentrating its investments in a region, industry or sector, the Fund may face more risks than if it were diversified more broadly. Past performance is not indicative of future results

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Published: September 2024