Look Who it Was Random video

More Profits In Puerto Rico (w/ Gabriella Heffesse) | Trade Ideas | Real Vision™

2,541 views · Published 8 December 2018 · 9:23 · Indexed 28 September 2026

Channel: Real Vision Presents · 2018 · News & Politics

Watch on YouTube

Gabriella Heffesse, chief operating officer at ACG Analytics, reviews and updates her successful bullish trade on the largest Puerto Rican bank, Banco Popular. She reviews the thesis, reflects upon this year’s price action, and unveils the current catalysts in this interview with Brian Price. Filmed on December 5, 2018.
Watch more Real Vision™ videos: http://po.st/RealVisionVideos
Subscribe to Real Vision™ on YouTube: http://po.st/RealVisionSubscribe
Start a 14-day free trial: https://rvtv.io/2Sz075s

About Trade Ideas:
In this series we meet with an array of the best and brightest analysts and traders in the financial markets. They discuss their favorite trade ideas of the moment in short 5-15 minute videos that are bursting with actionable content. The presenter will explore the key points of each trade, asking questions or providing signposting as required. Particularly important are discussions about risk/reward and position sizing. New episodes are filmed every week to keep the content topical, relevant, and fresh. 

About Real Vision™:
Real Vision™ is the destination for the world’s most successful investors to share their thoughts about what’s happening in today's markets. Think: TED Talks for Finance.  On Real Vision™ you get exclusive access to watch the most successful investors, hedge fund managers and traders who share their frank and in-depth investment insights with no agenda, hype or bias. Make smart investment decisions and grow your portfolio with original content brought to you by the biggest names in finance, who get to say what they really think on Real Vision™.

Connect with Real Vision™ Online:
Linkedin: https://rvtv.io/2xbskqx 
Twitter: https://rvtv.io/2p5PrhJ

More Profits In Puerto Rico (w/ Gabriella Heffesse) | Trade Ideas | Real Vision™
https://www.youtube.com/c/RealVisionTelevision"

Transcript:
Welcome to "Trade Ideas.” I am Brian Price, and joining me today is Gabby Heffesse, Chief Operating Officer at ACG Analytics. Now Gabby, let's pull up a chart of Banco Popular. In May, you suggested buying Banco Popular, the Puerto Rican bank, at $47 with a target of $56. That stock has reached that level, so how are you looking at it today? 
Yes, so we talked about this in March when it was around $42 and $43. And then I came back in May and it had gone up to $47. And the main thing I saw was a lot of money coming onto the island. Very small island, 3.5 million people getting $70 to $100 billion, which is equivalent to their GDP. So that kind of stimulus when you only have three major banking institutions will flow into the equities, both on the deposit level and on the loan financing level. 
So it was just kind of the easy-- well, not easy-- but the assumption that that much money flowing into a spot, and a bank being such a central player with disaster relief money would be a positive story for that equity. 
So before we look ahead to where you anticipate the shares going, I want to drill down a little bit in terms of that relief money. 
Sure.

In terms of what the anticipation was and where it's at right now. Is the island getting what it 
needs? Is it being distributed properly? 
So it takes time. And the fascinating thing about this is around less than 10% of the disaster relief money has gone to the island at this point. It's been over a year. It's not that-- I mean, if you go onto the island-- I actually have a flight in three hours. 
Thank you for being here, by the way. Just a quick stop here on your way to the airport. 
Yeah. It'll be my fourth time this year. And really, I think by early last year, at least in San Juan, you don't see the damage. But it was very big story, and they were able to get a lot of federal money. So as you know, Puerto Rico is in bankruptcy, they're restructuring their debt. So we actually have this really nice fiscal plan that the financial board puts forward that tells us how much insurance is expected, how much disaster relief is expected, and kind of outlines all of it for us. 
So of the around $74 billion that's estimated that they're going to get, they've gotten 7. But that's not a bad thing. That means that this island that had a stagnating economy for a long time is now going to have stimulus over the next 10 years. And if you look at New Orleans with Katrina, you saw that the prolonged stimulus actually helped the economy. And FEMA was there for a really long time. I think they still have some offices there. 
So as much as it's a story of relief, is it also a story of debt? Talk to me a little bit more about the bonds. What we've seen, and what's going forward.

More from this channel