New Position: Our Favorite LATAM Bank
A scalable digital banking platform at an attractive inflection point.
We recently highlighted the growing investment opportunities we see across Latin America.
Listed in the U.S. on the NYSE, today we are adding a new company to our portfolio, the “Aurelion Index”.
It is currently our highest-conviction name in the Aurelion LATAM Basket.
We have followed this business closely for some time, but have been waiting for the right moment. After a period of underperformance, the stock has recently regained momentum, creating what we argue is an attractive entry point.
We believe this is a company with significant growth potential, exposure to key trends across Latin America, and an attractive valuation.
It has proven its business model, being one of the largest banks in LatAm. In our view, the market is overlooking the quality & long-term potential of the business.
Table of Contents
Why Now?
1.1 Long-Term Growth Runway
1.2 Macro Environment & Market Sentiment
1.3 Our Belief That the Business Is Undervalued
1.4 An Attractive Entry Point
Investment Thesis
Company Overview
Financials
4.1 Why We Believe the Valuation Is Attractive
4.2 The Path to Sustainable Growth
4.3 Outperforming Traditional Banks
4.4 Fee Growth: Another Competitive Advantage
Asset Quality: Addressing the Bear Case
How We Value the Company
What Could Go Wrong
Our Final Thoughts