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Clasecuador narrows its focus on industries that
provide long-term value through strong free cash flow growth. The focus on
liquid profits is paramount in economies like Ecuador where capital markets
have no depth and thus liquidating equity investments is a cumbersome
process.
Firms in consumer goods industries such as food
and beverages, or in industries whose revenues are the result of daily cash
inflows, are typically the ideal targets.
These ventures are the least affected by economic
downturns, since the products or services they provide attend the most
basic needs of the population.
In addition, firms in these industries, with a
typically highly diversified consumer base, do not extend credit and the
business generates liquid revenues, profits and thus free cash flow for the
owners.
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