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Ciro Matuo
& team
Itaú BBA
First-place appearances: 4

Total appearances: 5

Team debut: 2009

Ciro Matuo’s Itaú BBA foursome captures first place for a third year running — and for the fourth time in five years. “The main global issue to watch is U.S. monetary policy — that is, the tapering of quantitative easing measures and its impact on global asset allocation strategies,” he contends. “Fund and investor flows to Latin America will remain contingent on the Federal Reserve’s pace and intensity in reducing the stimulus in the U.S. economy.” Slowing growth in China is also a concern, the 40-year-old adds, owing to “the high participation of commodity players among Latin American corporate bond issuers.” The São Paulo–based crew is advising clients to stay defensive by reducing portfolio duration and taking a very selective approach when it comes to leveraged companies and high-yield bonds. In addition, the strategists recommend establishing “a more diversified exposure to the different countries in Latin America,” Matuo says, while favoring such defensive sectors as financial services and utilities, and decreasing exposure to global commodities companies. “His edge is his deep analysis of investor flows into the local debt markets, and his forecasts of credit spread levels help us understand the industry’s willingness to take on credit risk,” attests one client. Matuo also co-directs (with Pablo Salgado) the team that ranks highest in Local-Markets Strategy. — Carolyn Koo