HIX Capital prioritizes defensive stocks amid Brazilian fiscal slowdown

HIX Capital founder Rodrigo Heilberg projects a challenging year for Brazilian listed companies due to the end of fiscal stimuli. This transition is expected to slow economic activity, compress profit margins, and weaken operational results.

To navigate this environment, Heilberg advises investors to avoid businesses heavily dependent on domestic consumption. Instead, he recommends prioritizing companies with predictable cash flows and resilient demand. While profit expansion is expected to be difficult across the Brazilian stock exchange, Heilberg notes that capital market players such as B3, XP, and BTG Pactual may see exceptions.

HIX Capital has concentrated its portfolio on defensive companies with growth potential, specifically naming Eneva, OceanPact, GPS, and Cury. In the energy sector, Heilberg highlighted how the phenomenon of curtailment—a temporary oversupply of renewable energy—can increase megawatt-hour prices during peak hours, benefiting thermal power plants that utilize their own natural gas, such as Eneva.