Brazil will be one of the first countries to emerge from recession and is on track to become a global economic powerhouse, according to Legg Mason affiliate Batterymarch.
The country's strong fundamentals combined with a well-regulated banking system means it has avoided much of the damage caused by the economic crisis.
This will leave it in a better position to take advantage of the recovery, says Claudio Brocado, part of the team running Batterymarch's Emerging Markets Equity fund.
"Brazil offers the ingredients for lasting economic success, including financial stability and global competitiveness-especially in the area of alternative energy-as well as increasing domestic-driven growth," explains Brocado.
"In our view, Brazil is no longer the so-called ‘land of the future', it is the land of today and a diverse source of promising long-term equity opportunities."
Some analysts are predicting the Brazilian economy to grow by more than 5% in 2010, according to Batterymarch which has invested there since 1987.
However, Brocado is also finding opportunities in smaller emerging markets such as Indonesia, Pakistan and Turkey in addition to larger countries like China and India.
Batterymarch Emerging Markets Equity fund follows a bottom-up approach looking for above-average growth opportunities.
The firm is a global equity specialist with institutional and subadvisory clients in North America, Europe and Asia and is the only quantitative manager among Legg Mason's affiliates.
As of September 30, 2009, it had $20.4bn in assets under management, including $5.6bn in emerging markets assets.
