The Strategy

Explorador's investment objective is to preserve capital under different market environments, while seeking to achieve above average returns on a risk-adjusted basis. It manages risk through short positions and derivatives as well as through rigorous analysis, and extensive focus and experience in the Latin America region.

In spite of periodic interruptions and setbacks, many countries in Latin America continue to implement dramatic economic restructurings and political transformations that will generate superior long-term economic growth and will provide an opportunity for superior investment returns. This economic growth is partially stimulated by heavy infrastructure investment, increasing mobility of capital flows, integration of regional economies through liberalized trade, and the gradual decline of excessive government regulation and intervention in the economy, which Explorador believes will combine to yield significant opportunity for the long-term, value investor.

The Explorador Fund

The Explorador Fund, LP seeks capital appreciation and income by investing principally, but not solely, in equity Securities that are traded in Latin American, U.S., or other public markets. It pursues a fundamental analysis-based, value investment approach, seeking asymmetric risk-return opportunities with a strong emphasis on capital preservation. The fund holds positions in equity markets, both long and short, and invests in merger and capital structure arbitrage situations, and fixed income and other debt instruments. The fund is active primarily in Brazil, Mexico, Chile, and Argentina in the telecom, energy, retail, media, natural resources and financial services sectors, seeking high quality business franchises with stable and reliable revenue and cash flow, low debt levels, cheap valuations, and high dividend yields. These attractively valued investments have fallen out of favor in recent years due to macro economic and political upheaval in the region, but offer compelling upside returns.

Explorador Capital Management, LLC serves as the General Partner of The Explorador Fund. Members of the General Partner include Pisces Fund LP, and Farallon Capital Management.

If you are an accredited investor and are interested in investing in The Explorador Fund or The Explorador Institutional Fund, please contact us.