Selected on the basis of tradibility (liquid and active trades) , the theme's Mexican ADRs listed on US markets used to belie with their strong performance the mounting risks, to which Mexico’s economy is exposed - but not any more
A close look at the companies which drove their performance to remarkable heights as compared to the Latin America 40 Index in 2022/2023, signals caution on the local market and limited potential globally
The 17 firms, setting aside the 4 American companies operating subsidiaries in Mexico, tell a story of exclusive moats carved out in the Mexican economy
- Telecom's eminent market position held by América Movil
is exposed to political headwinds - Transportation – 4 entities and little (if any) competitive overlap - is as volatile as the Mexican economy at large
- Mining, Industrial Goods with Cemex
, Energy and Finance – 7 firms enjoying strong pricing power and likely to benefit from a recovering economy ....
None of these actively traded companies promises the competitive mettle the Mexican economy will need to move forward, nor the strength to face the potential risks of US trade protectionism
The selection of US listed (or OTC-traded) Mexican companies does not include
unjustly and very poorly traded shares such as
- packaged foods giant Gruma (26 000 employees)
- chemicals major Orbia Advance (25 000 employees)
- regional bank Grupo Financiero Inbursa
- mining specialist Minera Frisco
or belonging to the MicroCaps
- transportation Grupo TMM (1000/1200 employees
- Innovative Payment Solutions
- AgileThought
- Burgerfi International
or voluntarily delisted such as
Industrias Bachoco, a national leader in the production of poultry (34 000 employees)
Santander Mexico Bank, following a tender offer by Santander on its subsidiary
The iShares Latin America 40 ETF
