GIVSY - Grupo Aval And Grupo Sura: Valuations Currently More Than Compensate For Political Risk

• Most Latin American companies have historically been attractive during particular cyclical periods similar to today, of rising commodity prices.
• As a Latin American case study, Colombia offers two exceptionally high quality and extremely cheap financial conglomerates trading at 6x-7x normalized earnings in Grupo Aval and Grupo Sura.
• Discounts in those stocks likely exist not only from economic uncertainty but worries about the political direction of the country.
• Those concerns, while not invalid, appear to be pricing in the absolute worst-case scenario for the economic and political future of the county.
• While investors need to deeply understand countries and individual companies to make sound investments, discerning investors can find bargains throughout Latin America today.

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