Charles de Vaulx

Charles de Vaulx Premium Guru

Last Update: 05-31-2016
Related: IVA International Fund

Number of Stocks: 81
Number of New Stocks: 4

Total Value: $4,399 Mil
Q/Q Turnover: 6%

Countries: USA KOR FRA FIN JPN HKG NOR TWN CHE BEL GBR MYS DEU
Details: Top Buys | Top Sales | Top Holdings  Embed:

Charles de Vaulx Watch

  • Charles De Vaulx Comments on DeVry

    As for DeVry (NYSE:DV) (which only the Worldwide Fund owns), our intrinsic value estimate was impaired as we underestimated the extent of the decline of the BTM (Business, Technology, Management) segment. We note, however, that the overwhelming majority of DeVry’s profits come from its healthcare schools (Nursing, Veterinary, and Physicians) where student loan defaults have been negligible.

      


  • Charles De Vaulx Comments on News Corp

    News Corp. (NASDAQ:NWSA)’s value has been impaired by a continued difficult environment for their newspapers, a weaker Australian dollar and the expensive acquisitions of Move Inc. and iProperty Group Ltd. A substantial part of News Corp.’s value though resides in their ownership of a stake in REA Group Ltd, a dominant and highly profitable real estate portal in Australia.

      


  • Charles De Vaulx Comments on Astellas Pharma Inc.

    Finally, a word on Astellas Pharma Inc. (TSE:4503), owned by both Funds. Astellas is the perfect antithesis of Valeant: Astellas spends substantial amounts on R&D (around 17% of revenues) and develops life-saving drugs, recently in oncology with Xtandi (treatment of prostate cancer); has no financial leverage; does not engage in price gouging; has a strong pipeline and conservative accounting; allocates capital well; pays dividends; buys back shares at reasonable prices whilst maintaining a substantial net cash position: exercises restraint in compensation of senior executives; is not promotional; and trades at a single digit multiple of earnings before interest, amortization and taxes. One risk, however, is that high healthcare costs in the U.S. lead to greater regulation of drug prices in the U.S. Such a development would be a negative for Astellas. We believe that risk is more than priced in at the current stock price.

      


  • Charles de Vaulx's Annual IVA Funds Letter from the Portfolio Managers

    May 4, 2016

      


  • Charles de Vaulx Buys 2 Discount Stocks

    Charles de Vaulx (Trades, Portfolio) (Trades, Portfolio), portfolio manager of the International Valuations Advisors (IVA) Fund, invested in two major stocks May 31: Bank of America Corp. (NYSE:BAC) and Hyundai Motor Co. (XKRX: 005380).


    The manager of Sofire Fund Ltd., which won “Fund of the Year” in the global equity category in 2005 and in 2006, Charles de Vaulx (Trades, Portfolio), joined the IVA Fund in May 2008 as portfolio manager and chief information officer. According to his May 27, semiannual report, de Vaulx chooses stocks to buy using a “preservation of capital” approach: the manager targets company stocks that trade at “reasonable discounts” to the company’s intrinsic value at the time of investment. Additionally, de Vaulx prefers companies that have good balance sheets so the fund does not suffer in case the valuations are inaccurate.

      


  • Charles de Vaulx Answers the Question - Is Value Investing Still Relevant?

    Charles De Vaulx answered the question during the IVA Funds conference call on March 16. 


    Is value investing still relevant?

      


  • Charles de Vaulx Trims Stake in Japanese Energy Company

    Charles de Vaulx (Trades, Portfolio) of IVA Worldwide Fund made no new buys in the fourth quarter, but he made some noteworthy transactions in a variety of sectors.


    De Vaulx reduced his stake in Miura Co. Ltd. (TSE:6005), a Japanese energy company, by more than 66% with the sale of 3,795,800 shares for an average price of ¥1,560.12 ($13.70 in American currency) per share. The transaction had a -0.94% impact on de Vaulx’s portfolio.

      


  • IVA Worldwide Fund Quarterly Review - Fourth Quarter 2015

    The IVA Worldwide Fund Class A (NAV) (“the Fund”) ended the quarter on December 31, 2015 with a return of 1.00% versus the MSCI All Country World Index (“Index”) return of 5.03% bringing YTD performance to -2.47% versus the Index return of -2.36% for the same period.


    Despite bouts of volatility, global equity markets showed resilience in the fourth quarter, recovering from the very difficult previous two months. Concerns over China’s growth, which triggered the third quarter’s sell-off, were somewhat alleviated and there was a positive reaction to further monetary stimulus by China’s Central Bank at the end of October. The European Central Bank also continued to loosen monetary policy at the beginning of December, although the stimulus measures fell short of market expectations. Diverging from other global central banks, the U.S. Federal Reserve raised the benchmark interest rate by 0.25 percentage points in December. This move was largely anticipated and was well received. The price of Brent crude oil continued to drop over the quarter, hitting lows not seen in over a decade, and the broader commodities market also remained weak. Cracks in high yield deepened, as spreads widened across the market. We believe that the distress seen in this market is indicative of broader global economic problems that are not being fully incorporated by equity markets. While we are concerned by this deviation, we are also intrigued by the opportunities this environment is beginning to present in the high yield space.

      


  • IVA Funds: Do Low Rates Truly Justify Higher Valuations?

    Since the financial crisis, Central Banks around the world have launched various forms of “Quantitative Easing,” driving interest rates in developed countries to ultra-low levels, manipulating currencies worldwide and injecting massive amounts of liquidity. The growth in popularity of the “Fed Model” (a valuation model which compares the yield on 10 year Treasury bonds to the stock market’s earnings yield) over the past 30 years has led some investors to justify using higher market multiples to price securities, bidding up the price of many stocks. Some believe that even if stocks do manage to deliver returns of 3% to 5%, that would be better than holding cash which offers a negative yield after inflation. The argument that higher valuations are justifiable and that equity markets will be OK as long as rates stay low is at best a relative argument and at worst a dangerous one. We think better questions to consider are: Why are interest rates so low? Why do so many Central Banks around the world practice “Quantitative Easing” and “Financial Repression”? We believe that low rates today are symptomatic of a world where economic and financial imbalances may be bigger than ever.

      


  • United Technologies and IBM Have New Positions in James Barrow's Portfolio

    James Barrow (Trades, Portfolio) is executive director of Dallas-based investment firm Barrow Hanley Mewhinney & Strauss, the lead portfolio manager for the Vanguard Windsor II and Selected Value Funds. Barrow Hanley currently serves as a sub-adviser to more than 45 equity and fixed income mutual funds.


    During the third quarter 26 stocks got new positions in Barrow’s portfolio, and here are his most weighted new buys.

      


  • Charles de Vaulx Acquires Stake in Emerson Electric

    Charles de Vaulx (Trades, Portfolio) of IVA Worldwide Fund looks for at least one of these characteristics – financial strength, temporarily depressed earnings or entrenched franchises – when he looks for investment opportunities. He follows the principles of Benjamin Graham and Warren Buffett (Trades, Portfolio); however, whereas Buffett’s approach is to invest in American companies, de Vaulx takes a more global posture, and his third-quarter transactions reflect that.


    The guru’s most noteworthy third-quarter transaction was his purchase of a 1,674,401-share stake in Emerson Electric Co. (NYSE:EMR), a Ferguson, Missouri-based electrical equipment company, for an average price of $49.17 per share. The deal had a 1.58% impact on de Vaulx’s portfolio.

      


  • Charles de Vaulx's IVA Funds Portfolio Manager Newsletter

    Dear Shareholder,


    Over the period under review October 1, 2014 to September 30, 2015, your Funds delivered slightly negative absolute returns (-4.21% for the IVA Worldwide Class A and -2.37% for the IVA International Class A), albeit ahead of their respective benchmarks (-6.66% for the MSCI All Country World Index and -12.16% for the MSCI All Country World [ex-US] Index).

      


  • Charles De Vaulx's IVA International Fund Q3 2015 Review

    The IVA International Fund (Trades, Portfolio) Class A (NAV) (“the Fund”) ended the quarter on September 30, 2015 with a return of -5.15% versus the MSCI All Country World ex US Index (“Index”) return of-12.17% bringing YTD performance to -0.18% versus the Index return of -8.63% for the same period.

    The third quarter was marred by swings in global markets as investors became increasingly concerned by the prospect of a slowdown in China and the impact it would have on the rest of the world. These concerns spiked mid-August after China’s central bank devalued the yuan, triggering a market sell-off that was most damaging to commodities and emerging markets. In September, citing recent market turmoil and an uncertain global growth outlook, the U.S. Federal Reserve held interest rates at record lows. Carnage in various commodities - oil, copper, iron ore, platinum and also in many soft commodities continued throughout the quarter. Equities and bonds in emerging markets were also hit hard and many currencies of emerging countries fell precipitously, including the Brazilian real, the Indonesian rupiah and the Malaysian ringgit. We believe that emerging markets are going through a bust after years of capital misallocation in China, coupled with unbridled credit growth. All of these developments highlight the continued importance of investing with caution and discipline.  


  • Charles De Vaulx's Q3 2015 IVA Worldwide Fund Commentary

    The IVA Worldwide Fund Class A (NAV) (“the Fund”) ended the quarter on September 30, 2015 with a return of -3.98% versus the MSCI All Country World Index (“Index”) return of -9.45% bringing YTD performance to -3.43% versus the Index return of -7.04% for the same period.


    The third quarter was marred by swings in global markets as investors became increasingly concerned by the prospect of a slowdown in China and the impact it would have on the rest of the world. These concerns spiked mid-August after China’s central bank devalued the yuan, triggering a market sell-off that was most damaging to commodities and emerging markets. In September, citing recent market turmoil and an uncertain global growth outlook, the U.S. Federal Reserve held interest rates at record lows. Carnage in various commodities - oil, copper, iron ore, platinum and also in many soft commodities continued throughout the quarter. Equities and bonds in emerging markets were also hit hard and many currencies of emerging countries fell precipitously, including the Brazilian real, the Indonesian rupiah and the Malaysian ringgit. We believe that emerging markets are going through a bust after years of capital misallocation in China, coupled with unbridled credit growth. All of these developments highlight the continued importance of investing with caution and discipline.

      


  • Charles de Vaulx's Stocks Trading with Low P/E

    Charles de Vaulx (Trades, Portfolio) is the chief investment officer and portfolio manager at International Value Advisers, LLC (IVA). He joined the firm in May 2008. Until March 2007, de Vaulx was portfolio manager of the First Eagle Global, Overseas, U.S. Value, Gold and Variable Funds, together with a number of separately managed institutional accounts.


    De Vaulx employs a value oriented approach and will seek investments in companies of any size that typically have one or more of the following characteristics: financial strength, temporarily depressed earnings or entrenched franchises. However, the overriding attribute of such companies is that their securities offer fundamental value. He is a global investor as most of his portfolio is invested in international companies.

      


  • IVA Worldwide Fund Q2 2015 Commentary

    The IVA Worldwide Fund Class A (NAV) (“the Fund”) ended the quarter on June 30, 2015 with a return of -0.90% versus the MSCI All Country World Index (“Index”) return of 0.35%, bringing YTD performance to 0.57% versus the Index return of 2.66% for the same period.


    The quarter was marked by bouts of volatility in global markets caused by political uncertainty in Greece, anxiousness over future interest rate increases in the U.S. and turbulence in the Chinese stock market. We continue to see stretched market valuations globally, driven by ultra-low interest rates as investors focus more on relatives than fundamentals in their search for yield. As bottom-up, fundamental investors, it remains difficult for us to find quality opportunities in this environment.

      


  • Charles de Vaulx Sells Portions of Three of His Most Valuable Stakes

    French-born asset manager Charles de Vaulx (Trades, Portfolio), partner, chief investment officer and co-portfolio manager at International Value Advisers, looks for many qualities in potential investments, but the most important is fundamental value. International Value Advisers’ record has been pretty good in recent years in spite of a certain amount of volatility in the market. IVA returned 3.2% last year, nearly 17% the year before and 6.63% in 2012.


    De Vaulx left most of the 12 most valuable stakes in his portfolio untouched during the first quarter. His top two holdings – Astellas Pharma Inc (TSE:4503) and Berkshire Hathaway Inc (NYSE:BRK.A) – haven’t been touched since 2014. Neither, for that matter, have his fourth- and fifth-most valuable stakes – Oracle Corporation (NYSE:ORCL) and Samsung Electronics Co Ltd (XKRX:005930).

      


  • Charles De Vaulx On The Absurdity Of Negative Interest Rates



  • Charles de Vaulx's IVA Funds Newsletter May 2015

    Dear Shareholder:

      


  • Charles de Vaulx Comments on DeVry Education Group Inc

    Conversely, one area that hurt us this quarter was our U.S. stocks. They averaged a return of -1.6%, compared to those in the benchmark which averaged a gain of 1.2%, and detracted -0.4% from our return led by poor performance from DeVry Education Group Inc. (DV), a for-profit higher education company in the consumer discretionary sector. We believe this company is suffering unfairly from issues plaguing its competitors and we think many investors fail to recognize the quality of DeVry’s medical and nursing schools, thus we took advantage of the share price weakness to add to our position.

    From Charles de Vaulx (Trades, Portfolio)’ IVA Worldwide Fund Q1 2015 Review.  


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