Colombia stays a favourite marketplace for some strategists and fund managers, regardless of some geopolitical tensions with the U.S., due to the nation’s worth proposition and rising economic system. U.S. President Donald Trump threatened on Sunday to impose quick tariffs on the South American nation as a result of it turned again plane carrying deported migrants. After Colombia reached a take care of the U.S. on Monday to just accept migrants, the White Home retreated from its sanctions, averting a possible commerce struggle. That geopolitical blip has not altered the bullish view of Yan Wang, chief rising markets and China strategist at Alpine Macro. “The occasions over the weekend counsel that Colombia has successfully handed the ‘Trump check’ and I don’t anticipate a big deterioration within the bilateral relationship,” Wang instructed CNBC Professional on Jan. 27. The U.S. had a commerce surplus of round $1.2 billion in items with Colombia on a 12-month annualized foundation as of Nov 2024, he mentioned, quoting information from the U.S. Census Bureau. This means that Colombia “must be comparatively insulated from Trump’s commerce insurance policies,” Wang famous. Whereas Wang is bullish on Colombia’s prospects, he acknowledged that the nation is topic to the identical headwinds skilled by different international locations. Nonetheless, he says “it’s prone to outperform its rising market friends.” Colombian shares “are among the many least expensive in rising markets. Shares are buying and selling at close to report low multiples and are at almost 50% low cost to the rising market benchmark. The COP [Colombian peso] is deeply undervalued, and Colombian bond yields are among the many highest in rising markets, each in actual and nominal phrases,” he defined. Wang mentioned he’s chubby Colombian equities and bonds and has an extended place in 10-year Colombian authorities bonds, which had a yield of 10.96% as of Jan. 27. His optimism comes amid rising investor curiosity within the South American nation, due to its strategic location, favorable tax insurance policies, rising shopper demand and increasing economic system. The Colombian economic system is anticipated to develop by 1.5% in 2024, up from 0.6% in 2023, in line with the World Financial institution . The Banco de la Republica, Colombia’s central financial institution, expects financial progress to select up even additional in 2025, with gross home product increasing by 2.9% this 12 months. These components have attracted the eye of different fund managers. “Colombia is small and it may simply be neglected. However I prefer it — I feel it is an attention-grabbing worth level and am particularly optimistic on it within the second half of this 12 months,” Malcolm Dorson, senior portfolio supervisor at International X ETFs, instructed CNBC Professional this week. “The MSCI Colombia Index trades at depressed multiples of 0.84x guide worth with a 8.32% dividend yield. This implies you should purchase Colombian equities now and be paid an 8% dividend yield simply to [potentially wait] till the political change [expected in] March of 2026,” he mentioned , referring to Colombia’s presidential election. The MSCI Colombia Index — which tracks the efficiency of large- and mid-cap shares on the Colombian market — is up 28.91% within the final 12 months, in line with FactSet information. For comparability, the MSCI Rising Markets index — which captures large- and mid-cap shares throughout 24 rising markets, together with Brazil, China and India — gained 13.64% throughout the identical interval. Dorson is now enjoying the Colombian progress story with the likes of Ecopetrol, the most important petroleum agency within the nation, and monetary establishment Bancolombia. Each shares are listed on the Colombia Securities Change and commerce as American Depositary Receipts (ADR) within the U.S. below the tickers EC and CIB . Dorson’s bets on the businesses are considerably contrarian, with all 12 of the analysts protecting Ecopetrol’s ADR giving it a promote or maintain score, in line with Factset. In the meantime, 6 of the 7 analysts protecting Bancolombia’s ADR give it a promote or maintain score. — CNBC’s Jesse Pound contributed to this report.