Credit Suisse Group strategists led by Andrew Campbell shuffled the composition of the shop’s Brazil equity portfolio for February as inflation expectations worsened markedly in recent weeks. For February, Campbell and his team recommend investors adding shares in inflation-resistant sectors such as card payment processors, property, beverages as well as financial exchanges and depositary services at the expense of large banks, oil and gas and retail.
After raising banks to “market weight” in December, the strategists cut the rating on that sector to “underweight” as credit growth remains slow and provisions are expected to stay high. Credit Suisse increased exposure to Cetip SA Mercados Organizados and commercial real estate company BR Properties SA.
Exposure to oil and gas was reduced given the “structural problems” afflicting Petróleo Brasileiro SA, allowing Campbell and his team to increase the stake of cyclical goods stocks in the model portfolio.