Investors are jittery regarding Rousseff’s choice, which has yet to be made official, to replace Finance Minister Guido Mantega. Former central bank chief Henrique Meirelles is seen as a leading candidate, but any of Rousseff’s choices are likely to be viewed as a letdown by investors because Neves promised a far more compelling finance minister.
Had Neves won, he would have made Arminio Fraga Brazil’s next finance minister. That served as one of the primary reasons why EWZ and other Brazil ETFs rallied leading up to the runoff election.
Aside from holding a degree of Princeton, Fraga is an alumni of George Soros’ famous Quantum Fund and a former hedge fund manager in his own right. Four years ago, Fraga’s Gavea Investments was acquired by J.P. Morgan Chase (NYSE: JPM). That pedigree is hard to match within developed markets, let alone by any of Rousseff’s candidates for the finance minister post.
iShares MSCI Brazil Capped ETF
