Insights into the Investment Moves of a Value Investing Maestro
Francisco Garcia Parames (Trades, Portfolio), a stalwart of value investing and Chairman and CIO of Cobas Asset Management, has recently disclosed his portfolio updates for the fourth quarter of 2023. With a 25-year tenure that places him among Europe's premier asset managers, Parames is a devout disciple of Warren Buffett (Trades, Portfolio) and a proponent of the Austrian business cycle theory. His investment strategy is deeply rooted in value investing principles, as detailed in his book "Invirtiendo a largo plazo" (Investing Long-Term). Cobas Asset Management, under his guidance, commits at least 80% of its exposure to international equities, with the flexibility to invest up to 40% in emerging markets. The remainder is allocated to fixed-income assets, primarily from the euro area, with a short average duration of less than 18 months.
Key Position Increases
During the quarter, Francisco Garcia Parames (Trades, Portfolio) bolstered his stakes in 13 stocks. Noteworthy increases include:
- CK Hutchison Holdings Ltd (HKSE:00001, Financial), where he added 1,256,615 shares, bringing the total to 2,689,890 shares. This move marks an 87.67% surge in share count and a 1.25% impact on the current portfolio, valued at HK$13,037,000.
- AcadeMedia AB (OSTO:ACAD, Financial), with an additional 983,831 shares, resulting in a total of 3,286,089 shares. This adjustment signifies a 42.73% increase in share count, with a total value of kr15,083,000.
Summary of Sold Out Positions
Parames completely divested from 37 holdings in the fourth quarter of 2023, including:
- Aryzta AG (XSWX:ARYN, Financial), where he sold all 7,683,353 shares, leading to a -1.68% impact on the portfolio.
- Exmar NV (XBRU:EXM, Financial), liquidating all 1,022,243 shares, which caused a -1.55% impact on the portfolio.
Key Position Reductions
Parames also trimmed positions in 18 stocks, with significant reductions in:
- Elecnor SA (XMAD:ENO, Financial) by 823,879 shares, resulting in a -64.05% decrease in shares and a -1.51% impact on the portfolio. The stock traded at an average price of €16.75 during the quarter and has returned 20.43% over the past three months and -3.32% year-to-date.
- Maire Tecnimont SpA (LTS:0QEP, Financial) by 1,900,283 shares, leading to a -48.27% reduction in shares and a -1.11% impact on the portfolio. The stock's average trading price was €4.48 for the quarter, with a return of 10.15% over the past three months and -2.53% year-to-date.
Portfolio Overview
As of the fourth quarter of 2023, Francisco Garcia Parames (Trades, Portfolio)'s portfolio comprised 31 stocks. The top holdings included 10.41% in Golar LNG Ltd (GLNG, Financial), 7.19% in Babcock International Group PLC (LSE:BAB, Financial), 5.86% in Atalaya Mining PLC (LSE:ATYM, Financial), 5.22% in CIR SpA (LTS:0ONR, Financial), and 4.76% in Currys PLC (LSE:CURY, Financial). The investments are predominantly concentrated in seven industries: Industrials, Energy, Consumer Cyclical, Basic Materials, Healthcare, Consumer Defensive, and Financial Services.
Value investors and those interested in the strategies of seasoned investment gurus can find more detailed information and analysis on GuruFocus.com.
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.
