GAM's Love moves into Brazil's 'toxic of all toxics' JBS following political scandal

Bullish on Brazil

Tim Love, investment director and co-manager of the $35m GAM Star Emerging Equity fund, has invested in Brazilian meat processing company JBS, which was recently embroiled in a corruption scandal involving Brazilian President Michel Temer.

Despite the "binary" nature of the trade, Love said he had rarely seen a stock so mispriced as JBS following the scandal. On the release of allegations that Temer had encouraged JBS chairman Joesley Batista to "bribe a jailed former legislator to buy the lawmaker's silence", the company's share price tanked 41% across a two-day period on 22 and 23 May, wiping R$12.6bn off its market value. Commenting on the purchase, Love said: "We bought the toxic of all toxics JBS as we think it will either go bankrupt or through the roof. "It is a global leader in terms of its footprint and if y...