AzValor Blue Chips FI, part of Spain-based AzValor Asset Management, disclosed in a portfolio report that its top-six trades during the fourth quarter of 2022 included a new position in Noble Corp (NE, Financial), boosts to its holdings in British American Tobacco (LSE:BATS, Financial) and Canadian Natural Resources Ltd (CNQ, Financial), a reduction to its holding in SLB (SLB, Financial) and the closure of its positions in Gold Fields Ltd. (GFI, Financial) and Teck Resources Ltd. (TECK, Financial).
The fund seeks long-term capital appreciation by investing in large-cap companies that are undervalued based on its proprietary estimates of intrinsic value. The fund may also invest up to 35% of its capital in emerging markets.
As of December 2022, the fund’s $49-million equity portfolio contains 49 stocks, with seven new positions and a quarterly turnover ratio of 23%. The top-four sectors in terms of weight are basic materials, energy, health care and consumer defensive.
Investors should be aware that portfolio updates for mutual funds do not necessarily provide a complete picture of a guru’s holdings. The data is sourced from the quarterly updates on the website of the fund(s) in question. This usually consists of long equity positions in U.S. and foreign stocks. All numbers are as of the quarter’s end only; it is possible the guru may have already made changes to the positions after the quarter ended. However, even this limited data can provide valuable information.
Noble Corp
The fund purchased 53,622 shares of Noble Corp. (NE, Financial), giving the position 3.86% equity portfolio weight. Shares averaged $35.08 during the fourth quarter.
The Sugarland, Texas-based energy drilling company started trading on the New York Stock Exchange in June 2021. While the company has a financial strength rank of 5 out of 10 and a profitability rank of 1 out of 10, the stock does not have enough data to compute ranks for growth, GF Value and momentum. Thus, Noble’s GF Score of 19 out of 100 may give an incomplete picture of the stock’s potential.
British American Tobacco
The fund added 38,795 shares of British American Tobacco (LSE:BATS, Financial), expanding the position by 343.56% and its equity portfolio by 2.90%.
Shares of British American Tobacco averaged 33.26 British pounds ($40.76) during the fourth quarter; the stock is fairly valued based on its price-to-GF-Value ratio of approximately 1 as of Friday.
The U.K.-based tobacco company has a GF Score of 83 out of 100 based on a momentum rank of 10 out of 10, a profitability rank of 9 out of 10, a growth rank of 6 out of 10, a GF Value rank of 5 out of 10 and a financial strength rank of 4 out of 10.
Canadian Natural Resources
The fund added 25,470 shares of Canadian Natural Resources (CNQ, Financial), boosting the position by 107.36% and its equity portfolio by 2.70%.
Shares of Canadian Natural Resources averaged $57.15 during the fourth quarter; the stock is modestly overvalued based on its price-to-GF-Value ratio of 1.17 as of Friday.
The Calgary, Alberta-based energy company has a GF Score of 85 out of 100 driven by a rank of 9 out of 10 for growth and momentum, a profitability rank of 7 out of 10, a financial strength rank of 6 out of 10 and a GF Value rank of 3 out of 10.
SLB
The fund sold 53,673 shares of SLB (SLB, Financial), trimming 98.83% of the position and 4.39% of its equity portfolio.
Shares of SLB averaged $49.80 during the fourth quarter; the stock is significantly overvalued based on its price-to-GF-Value ratio of 1.43 as of Friday.
The Houston-based energy services company has a GF Score of 59 out of 100 based on a rank of 6 out of 10 for profitability, financial strength and momentum. Despite this, the company’s growth and GF Value rank just 1 out of 10.
Gold Fields
The fund sold all 185,351 shares of Gold Fields (GFI, Financial), trimming 3.42% of its equity portfolio.
Shares of Gold Fields averaged $9.68 during the fourth quarter; the stock is fairly valued based on its price-to-GF-Value ratio of 1.07 as of Friday.
The South African gold producer has a GF Score of 85 out of 100. Even though the company’s GF Value ranks just 3 out of 10, Gold Fields has a rank of 9 out of 10 for growth and momentum and a rank of 7 out of 10 for profitability and financial strength.
Teck Resources
The fund sold all 39,473 shares of Teck Resources (TECK, Financial), trimming 2.73% of its equity portfolio.
Shares of Teck Resources averaged $34.62 during the fourth quarter; the stock is modestly overvalued based on its price-to-GF-Value ratio of 1.28 as of Friday.
The Vancouver-based mining company has a GF Score of 75 out of 100 based on a profitability rank of 7 out of 10, a growth rank of 5 out of 10, a GF Value rank of 3 out of 10 and a rank of 6 out of 10 for momentum and financial strength.
