Charles de Vaulx

Charles de Vaulx Premium Guru

Last Update: 08-29-2016
Related: IVA International Fund

Number of Stocks: 82
Number of New Stocks: 5

Total Value: $4,409 Mil
Q/Q Turnover: 8%

Details: Top Buys | Top Sales | Top Holdings  Embed:

Charles de Vaulx Watch

  • IVA Worldwide Fund 3rd Quarter Commentary

    The IVA Worldwide Fund Class A (NAV) (“the Fund”) ended the quarter on September 30, 2016 with a return of 3.73% versus the MSCI All Country World Index (Net) (“Index”) return of 5.30% bringing YTD performance to 5.70% versus the Index return of 6.60% for the same period.

    Despite bouts of volatility throughout the quarter, primarily related to anxieties over Central Bank actions and inactions, the markets were relatively quiet. The last few weeks were an exception, when Deutsche Bank concerns hit a crescendo, dragging down European bank shares and igniting fears about their overall health. We have expressed these same concerns for some time now and have therefore largely avoided European banks in our portfolio. Our cautious positioning continues to reflect our other concerns, including large credit excesses in China and prolonged Central Bank manipulations. We will expand upon this later on in our update.


  • IVA Funds Comments on Emerson

    Well, Deere (NYSE:DE) is a much finer business. They are world-class. It's much more oligopolistic. The returns of capital over a full cycle dwarf I believe what they are with other fertilizer companies. Yes, the answer is that we've looked at both. There's a clear price at which we would love to own Deere. But, in the fertilizer space, and understand there's a proposed merger going on, we have found it difficult to find one company that truly has much lower costs than the other. In a commodity business, if you can find a company that structurally has much lower cost than another, it helps assure you that they will be a survivor if and when commodity prices are low, and then the company may in fact capitalize during times of low prices to maybe increase its market share position.

    So, we have not been able to identify, at least yet, a fertilizer company that really stands out in terms of quality and being lower cost than others.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • IVA Funds Comments on Emerson

    Question: You hold Emerson Electric. It's always acquired a lot of companies over the years. Do you think it could be anything like a Valeant, who acquired a lot of companies over the years, or have some characteristics like that?

    Chuck de Lardemelle: No, not at all. Emerson (NYSE:EMR) has a very strong track record of making smart acquisitions, spending some Research and Development. Now, over the last few years, they've diversified into a business that they are now trying to spin off and making a number of acquisitions in uninterruptible power supplies/electronics. That vertical, if you will, has not worked out at all for Emerson, and they are going back to basics and spinning off or selling that division. The balance sheet is extremely strong, which is absolutely not the case of a Valeant.

    Emerson is in no position to hike prices and gouge clients. It's a very strong industrial company that is extremely well managed from an operational point of view, that has a strong balance sheet, and has not been able to hike prices substantially. However, again, over the last few years, they've gathered a collection of companies in one segment and those acquisitions turned out to be a mistake. And that's what provided us with an opportunity to get into Emerson. And they recognized their mistake and are now trying to correct it. So, in no way, shape, or form is it similar to a Valeant, in our opinion.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • IVA Funds Comments on Samsung Electronics

    Moving on to another large position, Samsung Electronics (XKRX:000830) is up substantially from its lows this year, and therefore not as attractive as it used to be. However, the balance sheet is pristine, the company sells not too far from tangible book value, and we believe the semiconductor franchise is highly profitable and solid. As for the telecom handset franchise, well, I'm sure you'll remember Motorola, Nokia, Siemens, SAGEM, or Sony Ericsson handset businesses? Yes, they all went out of business.

    So, what do we see there? Why should it be different for Samsung Electronics? Well, SmartPhones today are computers; capital employed in the business is very low. Basically, Samsung simply assembles the mini-computers. It's a business model akin to the Dell business model, not to a Nokia. The industry has consolidated; through its scale, Samsung is able to achieve buying power and a low-cost position; and through the advanced manufacturing of display components and semiconductors, Samsung has an edge in innovation. We anticipate this business may remain profitable in the future, with single-digit operating margin being sustainable despite heavy Chinese competition. Capital allocation and governance have been issues in the past for the Samsung Group. There are encouraging signs on both fronts. Time will tell.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • IVA Funds Comments on Berkshire Hathaway

    Next, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) still sells at a discount to our estimate of its intrinsic value. We believe Buffett and his successors are likely to be able to compound at a reasonable pace, particularly due to the ability to buy listed or unlisted companies in their entirety. A few looming technological innovations, though may be tough for some of Berkshire's businesses: driverless cars would negatively impact insurance subsidiary Geico, while driverless trucks would be a large negative for the railroad business, Burlington Northern. If battery technology continues to improve, at some point the storage of electricity will make renewable energy a lot more competitive against traditional utilities, a risk for Berkshire Hathaway Energy.

    This conglomerate, however, is well equipped to deal with obsolescence: after all, Berkshire is quite unique in its ability to take cash flow from mature or declining business A to invest successfully in a totally unrelated business B. Hopefully the lack of red tape, the investment culture, the candor, and the ethics on display at Berkshire will survive both Warren and Charlie.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • Charles de Vaulx's IVA Funds Semi-Annual Update Call Transcript

    Tara Hannigan: Thank you. Good afternoon, and welcome to the Semi-Annual IVA Funds Update Call. We thank you for joining us this afternoon. I'm Tara Hannigan, the Director of Mutual Fund Distribution. Our goals on this call are to update you on the funds and share our current investment thinking. Our portfolio managers, Charles De Vaulx and Chuck de Lardemelle, will give you prepared remarks explaining what they're seeing around the world today, and then we will open the call up to questions.

    To update you on IVA as a firm as of August 31, 2016, we had approximately $18.5 billion in total assets under management with our two mutual funds comprising just over $12.3 billion of that total. Both funds do remain closed to new investors.


  • IVA International Gains 4 in 2nd Quarter

    IVA International Fund (Trades, Portfolio) acquired four new holdings in the second quarter. They are Fanuc Corp. (TSE:6954), Euler Hermes Group SA (XPAR:ELE), Yokogawa Electric Corp. (TSE:6841) and Jardine Lloyd Thompson Group PLC (LSE:JLT).

    IVA International was established in 2008 by International Value Advisers and is managed by Charles de Lardemelle and Charles de Vaulx (Trades, Portfolio). The fund seeks long-term growth of capital and invests in a variety of securities and asset classes from markets around the world. The fund utilizes in-house, fundamental research conducted by analysts to aid in their decision-making process.


  • Charles de Vaulx Hikes Stake in Hyundai Motors

    Morocco native Charles de Vaulx (Trades, Portfolio) more than tripled his stake in Hyundai Motor Co. (XKRX:005380) during the second quarter.

    De Vaulx is the portfolio manager of the IVA Worldwide Fund, which focuses on long-term growth of capital through investing in a range of securities and asset classes from markets around the world. In the second quarter de Vaulx added 283,248 shares of Hyundai at an average price of 141,280 South Korean won ($126.16) per share.


  • Charles de Vaulx Invests in 5 New Holdings in 2nd Quarter

    Charles de Vaulx (Trades, Portfolio), chief investment officer and portfolio manager at International Value Advisers, added five new holdings to the portfolio in the second quarter.

    The guru acquired an 844,953-share holding in American Express (NYSE:AXP), a financial services company based in New York City, for an average price of $63.32 per share. The deal had a 1.16% impact on the portfolio.


  • Value Screeners Identify Opportunities

    Several companies made multiple GuruFocus value screeners as of Aug. 2.

    In addition to identifying the best stocks in which to invest, the value screeners provide insight in which sectors have high value potential in the short term. Based on the stocks that made the screeners, retail and industrial companies offer good investing opportunities.


Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)