Chile

The South American Reform Wave

The same political and economic forces that made Argentina interesting in 2023 were spreading across South America. Market liberalization, reduced government intervention, private sector reform — a regional shift in how these countries think about capital and growth. Chile was part of that wave, but with significantly lower political risk than its neighbors.

Chile has functional institutions, an independent central bank, and a track record of fiscal discipline. The reform upside exists here too — without the cliff-edge downside.

Structural Buyers: Chilean Pension Funds

Chile has one of the most mature pension fund systems in Latin America. Chilean pension funds are mandated buyers of domestic assets — they have legal obligations to allocate capital within the country. This creates a permanent, non-discretionary floor of demand for Chilean equities that does not exist in most emerging markets.

When institutional mandates are buying regardless of market conditions, you have downside protection that is structural, not conditional.

Copper: The Metal of the Next Decade

Chile holds the world's largest copper reserves and is the single largest copper producer globally. And copper is about to matter more than it has in 50 years.

The demand drivers are compounding: AI data centers, electric vehicles (the average EV uses 3–4× the copper of a combustion engine), grid modernization for distributed power, and defense spending. None of these trends are discretionary. They are infrastructure — mandated by technology, energy policy, and geopolitical competition. Chile is the country sitting on the material the world needs to build the next century.

15% of the portfolio. Still held. The copper thesis has years of runway remaining.