Cuervo: Brazil growth going strong ahead of World Cup

Jose Cuervo of HSBC Global Asset Management runs the $3bn (£1.9bn) HSBC GIF Brazil Equity fund, a Luxembourg-based Sicav registered in the UK.

The fund has returned 20.5% over three years to 31 December 2010, compared to an average return from the IMA Specialist sector of 16.4%. Here, Cuervo discusses the outlook for Brazil and his focus on domestic consumption. What is your investment approach? Our investment philosophy is a bottom-up, fundamental approach to stock selection based on disciplined research, a long-term horizon and a focus on valuations. We believe cashflows drive long-term stock returns and proprietary fundamental research is key to success. Valuation lies at the heart of our process. How is your portfolio...