A right-tilting surprise at the ballot box put Brazilian markets in a festive mood on Monday, and BTG Pactual joined the surge. As the bank's stock climbed, Andre Esteves' fortune increased by a record $2.7 billion in one day, a 20% jump. Bloomberg's Billionaires Index logged it as the largest daily rise across the list that session, pushing his wealth to $15.8 billion and placing him third among Brazil's richest.
Conservative contender Flávio Bolsonaro outpaced expectations, securing the top spot in the first round. Voters head back in under three weeks for a Bolsonaro-Luiz Inácio Lula da Silva runoff, with Lula serving as the left-leaning incumbent. According to political and financial analysts, Bolsonaro approaches the decisive round with considerably better odds than his rival, a setup that left markets positively euphoric.
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Esteves, BTG's main partner, is known for pragmatic relationships that span Brazil's left and right. In late August, he joined other bankers and entrepreneurs in meeting Lula as the president sought to repair relations with the business community during his reelection effort. Around that period, Esteves likewise sat down with US President Donald Trump at a Washington, DC-area golf course, and their conversation covered Brazil's economy and the elections. A BTG representative declined to comment.
Earlier this year, BTG was the sole Latin American bank involved in Space Exploration Technologies Corp.'s blockbuster IPO, an offering that propelled Elon Musk to the title of the world's first trillionaire.
Election headlines can flip the script for banks fast, and when that happens, fortunes tied to those stocks can move just as quickly. If you hold BTG or Brazil-focused funds, political momentum is now a key driver of near-term swings.
Brazilian banking has been one of the better performers this year. Get the free Market Briefs daily newsletter and follow it.
