The net asset value of our Iberian Portfolio in the first quarter of 2021 was +18.3%, compared with +5.1% for its benchmark index. If we extend the comparison period since we started investing in equities until the end of March 2021, it has obtained a return of -6.4%, while its benchmark index has obtained a return of +6.9% for the same period.
During the first quarter we have done some rotation in terms of portfolio inflows and outflows. We completely left four companies (Acerinox (XMAD:ACX, Financial), Catalana Occidente (XMAD:GCO, Financial), Prisa (XMAD:PRS, Financial) and Gestamp (XMAD:GEST, Financial)) which had a weighting of close to 5.5% at the end of December, all of them for their good performance, and we entered Galp (XLIS:GALP) and Grifols B (XMAD:GRF) with a combined weighting of around 2.5%. In the remainder of the portfolio we increase the weighting mainly in Mapfre (XMAD:MAP, Financial) and Tubacex (XMAD:TUB), although in the latter the increase in the weighting has been greatly helped by the increased share price; and we have lowered it in Alba (XMAD:ALB) and Meliá (XMAD:MEL) due to the good performance of the stock in recent quarters.
During the quarter we increased the target value of the Iberian Portfolio by about 4%, to €184/share, as a result of which the upside potential stands at 97%.
In the Iberian Portfolio, we have invested 98% and, as a whole, the portfolio trades with an estimated 2021 P/E ratio of 7.5x, compared to the 17.1x of its benchmark index, and with a ROCE1 of 29%.
