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16 Companies With The Highest Conviction Of Active International Stock Managers

There are more and more investors whose bull’s skin is too small when it comes to allocating assets in their portfolios and they are not limited to national borders, not even to European ones. Inverco data show month by month that significant volumes of money are directed towards products that have a more international strategy, which is not even limited to a specific geographical area.

Hence, the Economist launched the Global League of Active Management three years ago , a tool that serves to identify the best international equity funds, among those with three years of life and a decorrelation of their benchmark index equal to or greater than 65%.

This has allowed during this time to compare well-known funds such as Cobas Internacional, Azvalor Internacional, Bestinver Internacional or Magallanes European Equity with their international competitors and portray the success or not of their strategy due to the profitability they offer, taking into account that it is about the most active managers in this category of funds.

In this way, it can be seen that the average performance of the Global League is 18% , with data from Morningstar as of August 17, and the average three-year annualized revaluation is 10%.

In the last review, 42 Spanish funds appeared among the 428 products that currently make up the Global League . And some of them occupy relevant positions in the ranking. This is the case of Hamco Global Value Fund , advised by John Tidd for Andbank , which is in eighth place on the list, or Global Prism , managed by former members of Merchbank ?? a firm that acquired the Andorran bank and which has delegated the management of this fund at Prisma Asset Management ??, which is in thirteenth position.

The Paramés fund is ranked 23rd and then you have to go down to 96 to find the Magallanes European Equity . Of the Spanish funds, the worst unemployed is theInternational Metavalor , which stands at 394, with a fall in the year of 19.21%, according to Morningstar.

Active managers tend to have a low turnover of their portfolios, since they tend to place great confidence in the medium-term revaluation of the companies in which they invest. And at a time when the rotation of investors towards the more cyclical companies is allowing some to show their value already, elEconomista has analyzed which are the international values ​​that the Spanish managers of the Global League are betting the most on. For this analysis, only funds from independent firms have been taken into account.

Taking into account the first position they occupy in the portfolio of their funds, according to the latest available data? At the end of the first semester or July ?? Liquefied gas companies, steel companies, energy managers, bread manufacturers, food delivery platforms or pure technology appear,

In Hamco Global Value Fund the first position is occupied by Peyto , with 6.12%, a Canadian firm dedicated to the exploration and production of natural gas, a sector for which John Tidd is betting in the fund. “Canadian gas companies already had much better prospects before the pandemic.

The reduction in oil and gas production in the US was good for these companies, as lower production in the US leads to higher gas prices in Canada. However, Canadian companies fell on the stock market like everything else, generating a very good opportunity, “explained the head of the fund in an interview with elEconomista.

In Prisma Global, it is the biotechnology company Gilead that, with 6.81% of the portfolio, occupies the first position, while in Cobas International it is another gas company, Golar , which now holds that position, with 8.63%. The energy sector is one with which Paramés, like other value managers, is most confident. In fact, the weight of the sector in this fund is 37% and another firm such as the US oil company Kosmos Energy appears among the main positions .

A strategy that contrasts with the green wave that has invaded the investment world, which rejects polluting companies. “To a large extent, the market considers that these companies are non-invertible, in fact, despite the strong recovery in the price of crude oil, the companies have lagged behind in their prices.

But at Cobas AM we are detecting good investment opportunities in the market. sector: in companies with little risk, thanks to a healthy balance sheet, producers with low costs (cash flow breakeven around 30-35 dollars / barrel) and good management teams. All this trading at 3-5 times profits, which they offer us a high safety margin “, they pointed out in the firm in its last quarterly letter.

Porsche is the first position of Magallanes European Equity , a sector for which Iván Martín, fund manager and president of Magallanes Value Investors, feels a special predilection in some firms, including Renault . In his last interview with the EconomistAt the end of last year, Martín explained that “Porsche is the main position, with almost 5%, because you buy Volkswagen at a discount of around 30%.

And you have all the brands at a ridiculous price without losing money at the operational level , which is meritorious. Renault is a company that, if not for the net cash, would have found itself in a severe restructuring process. Bankruptcy was being discounted with 10 euros.

And we suffer that. For us now it is worth between 40 and 60 euros. It does not suffer stock risk, it has a new CEO, Luca de Meo, who turned around Seat and they have an 8-year plan, which is to speak as a value “. A sample of the manager’s conviction in these companies is that both companies have practically the same weight in their portfolio now as they did then.

In Azvalor Internacional , the first position is held by Tullow Oil , a British company dedicated to the exploration of oil and natural gas, with a weight of 6.03%. In the case of Paramés’ former colleagues at Bestinver, the energy sector has a very relevant weight, 57%, with firms such as Consol Energy , National Oilwell Varco , PrairieSky Royalty or Arch Resources among the top ten positions.

For its part, in March Global , managed by Francisco Javier Pérez Fernández, there is a company that has become known for having been one of the main bets at the time of Paramés. It’s about Aryzta, the supplier of bread to multinational fast food companies. In Cobas Internacional it occupies the third position, with 5.26% of the portfolio ?? although it had a higher weight ??, while in this March fund the stake is higher, with 9%, representing the first position.

Some funds, such as Mapfre AM Good Governance , GCO International , GDP World Equit and Metavalor Internacional , trust some of the technology companies included in the Faang, such as Alphabet, Microsoft, Apple and Amazon, with weights ranging from 6.34% that has the Metagestión product in the apple brand at 6.43% that the company founded by Bill Gates represents in the fund of the manager of Catalana Occidente.

In Credit Suisse Family Business ?? where at least 90% of the equity exposure, which can vary between 50% and 100% of the portfolio, is invested in companies in which the founding family, the founder or the company president have a minimum of 20% participation or a minimum of 20% of the voting rights ??, it is Aperam , the steel company that holds the first place, although with a weight of 3.70%.

Caja Ingenieros Global ISR , which follows sustainability criteria when selecting securities, bets on Euronext and Bestinver Internacional , managed by Tomás Pintó and Jorge Fuentes, maintains its trust in HelloFresh. “The market shares in the countries in which it operates and the profitability it obtains from its operations make it a truly impregnable fort for its competitors,” explained those responsible in the fund’s latest report.

Mastercard is the main position of Beka International Select Equities and March International Famiy Business focuses its main bet on a family holding company for value investors such as Berkshire Hathaway. At Profit Bolsa , with 4.43% of the portfolio, the energy manager Schneider is the value most pampered by its manager.

Shared values
Beyond the main positions, there are a series of companies that appear on a recurring basis in the Spanish funds of the Global League belonging to independent firms with positive performance in the year. Microsoft is the company that repeats the most, in up to six funds, followed by the semiconductor manufacturer ASML , the manufacturer of lenses and glasses Essilorluxottica or the pharmaceutical company Roche , which are in five funds.

Eleven other companies are listed in four different products. These are the technological Alphabet , Amazon , Apple, Facebook and Tencent; Antofagasta, Berkshire Hathaway , L VMH Moet Hennessy Louis Vuitton , Renault, The Estee Lauder Companie s and Walmart .

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