10 Best Emerging Markets Stocks to Buy According to Hedge Funds

7. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Holders: 36

​​Vale S.A. (NYSE:VALE) is a Brazilian multinational mining company and one of the world’s largest producers of iron ore and nickel. Headquartered in Rio de Janeiro, VALE’s operations encompass the extraction and production of iron ore, pellets, nickel, manganese, copper, and coal. The company also manages extensive logistics systems, including railroads, maritime terminals, and ports, facilitating the efficient transportation of its products.

Vale S.A. (NYSE:VALE) delivered a strong operational performance in 2024, achieving its highest iron ore production since 2018 at 328 million tons, exceeding original guidance. The company demonstrated cost efficiency with iron ore C1 cash costs reaching $18.8 per ton in Q4, the lowest level since 2022. VALE successfully completed key projects, including the start-up of Vargem Grande and Capanema ahead of schedule, adding 30 million tons of low-cost production capacity. In base metals, the company achieved its highest copper production since 2020, with Salobo producing approximately 200 kilotons of copper in 2024.

The Board approved $2 billion in dividends and interest on capital, resulting in an annualized 10% yield, along with a new buyback program for up to 3% of outstanding shares. Vale S.A. (NYSE:VALE) also announced the new Carajás initiative, focusing on accelerating the development of critical minerals in one of the world’s best provinces. The company also maintained strong progress on safety and environmental commitments, achieving 57% completion of the Upstream Dams Decharacterization program and expecting no dams at Level 3 by the end of 2025. With such strong momentum and plenty of growth opportunities from new projects, VALE is one of the best emerging markets stocks to buy.