Christian Keleti

Track&Field is an asset-light sports apparel franchise with a rare alignment model: the franchisor only charges a small markup (15%) over cost and earns royalties on sell-out, so it never pushes unwanted inventory onto franchisees—avoiding the 'sell-in' trap that ruined other brands. The wellness tailwind from GLP-1 weight-loss drugs will bring millions of new people into gyms, creating a structural demand boost for fitness clothing. The company also runs an ecosystem of events, sells high-margin supplements and coffee inside stores, and uses a small-box format with extraordinary sales per square meter. It has no debt, generates strong free cash flow, and trades at an absurd ~8x forward earnings with 25-30% annual earnings growth. The market wrongly treats it as a generic retailer, ignoring its quality and growth.

Brazilian large funds are concentrated in a few large-cap consensus names, leaving many small and mid-cap second-line stocks underfollowed and with little competition. This creates significant alpha opportunities for fundamental managers who can identify and hold these companies, as seen with Smartfit and Allos.

Track Field and Priner are compelling long-term investments because they operate in large global addressable markets, have growth that does not depend on Brazil, are run by serious management, and are currently mispriced with wrong valuations, justifying dedicated long-term capital.

Brazilian large funds are concentrated in a few large-cap consensus names, leaving many small and mid-cap second-line stocks underfollowed and with little competition. This creates significant alpha opportunities for fundamental managers who can identify and hold these companies, as seen with Smartfit and Allos.

ISA Cteep (ISAE4) is a defensive electric transmission utility trading at a dividend yield of ~10% and benefiting from an under-owned, under-followed situation. The company has an ongoing claim against the São Paulo state tax authority (Cfaz) that, if successful, could deliver a one-off gain equivalent to 25-30% of the market cap. Because the stock is held by very few investors, there is no redemption-driven selling pressure, making it a calm position with a solid carry and a potential large upside catalyst.

The Brazilian drugstore sector is facing a generational opportunity: patents on blockbuster GLP-1 drugs (Ozempic, Wegovy, Mounjaro) are expiring, and a flood of generic versions will drive the price from R$1,600 to R$400 or less. This will explode the addressable market from a few million consumers to tens of millions, more than compensating any near-term margin compression. The market, however, is myopically focused on the initial price decline and has crushed the stocks: Raia Drogasil fell from 25x to 15x earnings, Pague Menos has been hammered, and Panvel trades at 8x earnings. These are high-ROIC companies trading at crisis multiples, presenting a deep value entry point.

The Brazilian drugstore sector is facing a generational opportunity: patents on blockbuster GLP-1 drugs (Ozempic, Wegovy, Mounjaro) are expiring, and a flood of generic versions will drive the price from R$1,600 to R$400 or less. This will explode the addressable market from a few million consumers to tens of millions, more than compensating any near-term margin compression. The market, however, is myopically focused on the initial price decline and has crushed the stocks: Raia Drogasil fell from 25x to 15x earnings, Pague Menos has been hammered, and Panvel trades at 8x earnings. These are high-ROIC companies trading at crisis multiples, presenting a deep value entry point.

The Brazilian drugstore sector is facing a generational opportunity: patents on blockbuster GLP-1 drugs (Ozempic, Wegovy, Mounjaro) are expiring, and a flood of generic versions will drive the price from R$1,600 to R$400 or less. This will explode the addressable market from a few million consumers to tens of millions, more than compensating any near-term margin compression. The market, however, is myopically focused on the initial price decline and has crushed the stocks: Raia Drogasil fell from 25x to 15x earnings, Pague Menos has been hammered, and Panvel trades at 8x earnings. These are high-ROIC companies trading at crisis multiples, presenting a deep value entry point.

SBF (Grupo SBF) is one of the most absurdly cheap retailers on the exchange, trading at only 4x earnings after a strong recent quarter that suggests the next result will be extremely robust. The market remains fixated on one-off fears (Copa do Mundo comparison, tax on low-value imports) while ignoring the operational improvement. At this valuation, the stock offers a wide margin of safety and significant upside if the company continues to deliver.