Highlighting Mota-Engil's Impactful Exit and Portfolio Adjustments
Azvalor Iberia FI (Trades, Portfolio), a mutual fund renowned for its value investing approach, has disclosed its investment activities for the fourth quarter of 2023. The fund, which primarily targets undervalued Spanish and Portuguese equities, is managed with a long-term perspective. Azvalor Iberia FI (Trades, Portfolio)'s investment strategy is rooted in identifying companies with sustainable competitive advantages, high return on capital employed, and strong management teams whose intrinsic value is not yet recognized by the market. With a portfolio that avoids derivative instruments and maintains a risk exposure of 0-25%, the fund is steered by the high conviction approach of its manager, Fernando Bernad, aiming for sustained returns over time.
Key Position Increases
Azvalor Iberia FI (Trades, Portfolio) has bolstered its holdings in six stocks during the quarter. Noteworthy increases include:
- A substantial addition of 2,557,000 shares in Cash(^CASH, Financial), raising the total to 20,336,000 shares. This move marks a 14.38% increase in share count and a 4.88% impact on the current portfolio, with a total value of $20,336,000.
- A significant boost in Prosegur Cash SA(XMAD:CASH, Financial) by 936,845 shares, bringing the total to 8,359,404. This adjustment reflects a 12.62% increase in share count, with a total value of €4,489,000.
Summary of Sold Out Positions
The fund has also made decisive exits from two holdings:
- Complete divestment from Mota-Engil(XLIS:EGL, Financial), selling all 1,663,697 shares, which resulted in a -6.91% impact on the portfolio.
- Liquidation of the entire stake in Altri SGPS SA(XLIS:ALTR, Financial), consisting of 493,513 shares, causing a -3.8% impact on the portfolio.
Key Position Reductions
Reductions were made in three stocks, with the most significant being:
- A reduction in Tubacex SA(XMAD:TUB, Financial) by 390,732 shares, leading to a -17.17% decrease in shares and a -1.96% impact on the portfolio. The stock traded at an average price of €3.09 during the quarter and has seen a 22.92% return over the past three months and a -2.71% year-to-date performance.
- A cutback in Elecnor SA(XMAD:ENO, Financial) by 73,355 shares, amounting to a -27.02% reduction in shares and a -1.76% impact on the portfolio. The stock's average trading price was €16.75 for the quarter, with a 20.43% return over the past three months and a -3.32% year-to-date return.
Portfolio Overview
As of the fourth quarter of 2023, Azvalor Iberia FI (Trades, Portfolio)'s portfolio is composed of 9 stocks. The top holdings include 38.85% in Cash(^CASH, Financial), 12.6% in Tubacex SA(XMAD:TUB), 11.8% in Tecnicas Reunidas SA(XMAD:TRE, Financial), 8.57% in Prosegur Cash SA(XMAD:CASH, Financial), and 7.4% in Elecnor SA(XMAD:ENO). The holdings are predominantly concentrated in four industries: Industrials, Basic Materials, Technology, and Financial Services.
The strategic moves made by Azvalor Iberia FI (Trades, Portfolio) in the fourth quarter reflect a dynamic approach to value investing, with careful consideration of market conditions and individual company performance. The fund's adjustments, particularly the exit from Mota-Engil and the increased stake in Cash, demonstrate a commitment to optimizing the portfolio for long-term growth and stability. Investors and potential members of GuruFocus.com can gain valuable insights from these investment decisions, which are grounded in a deep understanding of value investing principles.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
