Investors who think now is the time to own Brazilian stock are buying Bradesco shares, according to Wall Street. Bradesco is the second largest private bank in the country. Hedge funds like Highbridge Capital Management are bullish on Banco Bradesco, and U.S. Bancorp DE now owns the bank’s stock.
USA Financial Portformulas Corp owns 134, 276 Bradesco shares valued at more than 1.1 million. Sprucegrove Investment Management bought more shares of Bradesco, and State of New Jersey Common Pension Fund D now owns shares worth $3.2 million. The bank’s stock is trading at $9.85 a share, but the stock is on its way up, according to Wall Street analysts. Investors are buying more Bradesco stock because the bank is turning in incredible profit numbers and is paying a special dividend. Most investors think CEO Luíz Carlos Trabuco Cappi and his bank team have a lot to do with the bank’s performance.
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CEO Luíz Carlos Trabuco Cappi is the 66-year-old banker who never left Bradesco after joining the company in 1969. Trabuco saw an opportunity and a career when he went to work for the 43-year-old bank. In 1969, Brazil was a different country. Political upheaval and economic confusion were the words investors used to describe Brazil. But Trabuco saw the potential for growth in the banking industry. The largest Brazilian bank, Banco do Brazil is a government-back bank, so profit isn’t a priority. Trabuco knew he could carve a successful career path with Bradesco, so he put all his energy into learning the banking business.
Luiz Carlos Trabuco Cappi was right. The bank made Trabuco a vice-president in 1999, and four years later he became president of the bank’s insurance division, Banco Seguros. By the end of 2008, Seguros was a major Bradesco profit center. Trabuco and his team were cranking out 30 percent of Bradesco’s total profits. At the end of 2008, the bank brought Trabuco back as president. Trabuco is one of the top bankers in Brazil and Bradesco’s figures show his ability to manage more than 5,000 bank branches. His social skills and his knowledge of the Brazilian market are just two of the qualities that make investors believe in Bradesco again.
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