Brazil’s Totvs (BSP:TOTS3), which supplies enterprise resource planning (ERP) software, bucked the trend of that nation’s economic and political challenges by exploiting its coveted brand and 70% market share to execute in Brazil’s fledgling software market, where only 13% of IT spending goes to software (compared to 26% in the U.S.). However, foreign currency posed a challenge for us as unhedged investors as the Brazilian real lost 47% of its value against the U.S. dollar in 2015, overwhelming the company’s more modest 13% share-price decline in local currency.
From Royce Fund's Global Value Fund 2015 annual letter.
Also check out:
