INCA Investments uses a disciplined fundamental approach to invest in the equity markets of Latin America. Our investment philosophy is governed by three main pillars:
Bottom-Up/Fundamental Investing: Although our many years of Latin American investment experience provides us with a deep understanding of the economic and political trends of the region, we believe that we can uncover the most insightful investment information by using a bottom up based approach to focus on companies over countries.
Value Bias: We actively seek to invest in companies with below average valuations. We find many of these under-researched, mispriced companies in the smaller to mid-cap company universe and in companies based in off-index countries. As long term contrarian investors, we are also seeking to invest in overly discounted companies which the market has knocked down for reasons that we believe are either temporary or largely irrelevant to the future business prospects of the company.
Favor Companies with Strong Business Franchises: We prefer companies with strong business franchises that are domestically focused, have sustainable advantages and are under low government regulation. We believe these companies are well-positioned to benefit from Latin America’s secular consumer growth story.