LatAm Equity Strategy Flows To Know

Latin American markets faced headwinds in May 2026, driven by higher US interest rates and a stronger dollar leading to outflows from EM funds. In Brazil specifically, foreign investors pulled significant capital from the B3 exchange, though Energy remained the only net-buy sector.

Key Takeaways

• 1.LatAm underperformed global markets in May amid rising US rates and worsening EM sentiment.
• 2.Global flows to EM ex-China turned negative in May for the first time since Aug-25.
• 3.Foreign investor flows to the Brazilian stock exchange (B3) were negative in May, with selling concentrated in cash equities, excluding Energy.

Table of Contents

• LatAm Equity Strategy
• Flows to know
• LatAm lags as flows leave EM
• 1st monthly outflow from EM ex-China since Aug-25
• BZ May flow: foreigners bought only Energy
• Smaller outflows from local equity funds in Brazil
• Outflows from BZ corporate credit funds accelerated
• List of acronyms
• Flows to global funds dedicated to LatAm
• Global funds - Positioning in LatAm
• Investor participation in B3
• Foreign flow to B3
• Brazil main investment assets
• Brazil local fund industry
• Brazil local funds industry: weekly flows
• Short Interest
• Stocks with more than 5 Days to Cover
• Stocks in our coverage