May 5, 2014, 12:25 P.M.
Fortress Investments (FIG) principal Michael Novogratz takes the stage at the 19th annual Sohn Investment Conference with what he asserts is a deeply loathed investment idea: Brazil.
Novogratz argued that Brazilian stocks, especially, present a compelling investing opportunity precisely because sentiment is so low. He predicted good things in store for the country if, as he told conferencegoers he believes will be the case, if President Dilma Rousseff suffers an upset loss in the country’s October presidential elections.
“You can’t find a person that’s optimistic locally,” Novogratz told a packed room of listeners at the conference, which is co-sponsored by Bloomberg LINK. “Pessimism is at an all time high,” including among foreign investors, he added.
“The bet is simple,” he said: It’s a bet against Rousseff, whose loss, he asserted, would result in “a major rally in Brazilian assets.”