Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Macro Events Buffeting Adecoagro

Farming is hard enough without the added issues of questionable government actions, but that's the reality of the operating environment for Adecoagro (NYSE:AGRO). This large South American sugar, ethanol, farming, and land company has had to deal with the "known unknowns" of uncertainties in sugar, ethanol, crop, and land prices, but also the ongoing problems in the Argentine economy, the risk of larger harvests in North America, and now the geopolitical issues between Ukraine and Russia.

Adecoagro remains a patience-testing play on the realization of the underlying value of its land holdings and its long-term expansion plans in sugarcane processing and ethanol production. Today's valuation continues to look well short of that implied by recent land transactions and...

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