Baron Funds Comments on Banco Santander-Chile

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Jun 22, 2017

We also recently initiated a position in Chilean bank Banco Santander-Chile (BSAC, Financial), in our view one of the best managed Latin American banks. We believe the bank will benefit from a market-friendly shift in political direction in Chile combined with the substantial recovery in commodity prices over the past year. Responding to the slowdown that ensued post commodity-boom, the bank adopted a conservative position, exiting high risk segments, preserving liquidity, being more selective on asset growth, and cutting costs. As a result, we think Banco Santander-Chile is well positioned to benefit as a new credit cycle emerges in the country.

From Baron Insights: Banking on Growth in International Financials.