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New Spain Guru Francisco Parames and His Top 5 New Q1 Buys

Holly LaFon

Holly LaFon

249 followers
New guru Francisco Garcia Parames is chief investment officer of Bestinver Asset Management, a Spanish money management firm founded in 1987, with €6.5 billion in assets under management. The firm has seven mutual funds, four pension funds and eight sicavs, with three cornerstones, with a 21% annual average Spanish equity return since 1993 and 11% 11% annual average global equity return since 1998.

Bestinver encapsulates its value investment philosophy on its website: “We believe the most reliable way to obtain an adequate return for our customers is through long term investments in well managed, understandable and undervalued businesses with significant long-term capital upside.”

The firm’s portfolio is heavily populated by international stocks. It currently holds 95 stocks, with a total value of $1.17 billion, and introduced eight new positions in the first quarter of 2013.

The largest new positions Parames bought during the quarter are: General Dynamics (GD), Telefonica SA (XMCE:TEF), Royal Imtech NV (XAMS:IM), Tata Motors (TTM) and WH Smith PLC (LSE:SMWH).

General Dynamics (GD)

Parames purchased 536,573 shares of General Dynamics for $69 per share on average in the second quarter, a holding occupying 2.5% of the portfolio. Shares have since increased 21% to a new 52-week high. The share price is $83.65 Thursday afternoon.



General Dynamics Corporation was incorporated in Delaware. General Dynamics has a market cap of $29.59 billion; its shares were traded at around $83.70 with a P/E ratio of 10.80 and P/S ratio of 0.90. The dividend yield of General Dynamics stocks is 2.60%. General Dynamics had an annual average earnings growth of 5.7% over the past 10 years.

Telefonica SA (XMCE:TEF)

Parames bought 795,329 shares of Telefonica SA in the first quarter at an average price of $11. Since then, the price dropped 8%. This holding equates to 0.71% of the portfolio.



Telefonica SA was incorporated on April 19, 1924, under the laws of the Kingdom of Spain. Telefonica SA has a market cap of $59.4 billion; its shares were traded at around $12.92 with a P/E ratio of 10.80 and P/S ratio of 0.70. The dividend yield of Telefonica SA stocks is 5.20%. Telefonica SA had an annual average earnings growth of 8.9% over the past 10 years.

Royal Imtech NV (XAMS:IM)

Parames bought 893,306 shares of Royal Imtech NV, a 0.67% holding. The stock’s price has plunged 83% from its average price during the first quarter and has a share price of $2.29.



Royal Imtech is a European technical services provider. Royal Imtech NV has a market cap of $193.829 million; its shares were traded at around $2.29 with a P/E ratio of 1.29 and P/S ratio of 0.04. The dividend yield of Royal Imtech NV stocks is 26.03%.

Tata Motors (TTM)

Parames purchased 362,264 shares of Tata Motors for $28 per share on average in the first quarter, after which the stock dropped 12%. The holding accounts of 0.58% of the portfolio.



Tata Motors is an Indian automotive manufacturer. Tata Motors Ltd. has a market cap of $15.72 billion; its shares were traded at around $24.40 with a P/E ratio of 8.10 and P/S ratio of 0.60. The dividend yield of Tata Motors Ltd. stocks is 1.30%.

WH Smith PLC (LSE:SMWH)

Parames’ fifth-largest new position was in WH Smith PLC, of which he bought 689,159 shares at an average price of $7. The stock went up 11% since then.



WH Smith is a British book store chain appearing in high streets, shopping centers, airports and elsewhere, primarily in the UK and growing internationally.

WH Smith PLC has a market cap of $942.33 million; its shares were traded at around $7.55 with a P/E ratio of 11.36 and P/S ratio of 0.81. The dividend yield of WH Smith PLC stocks is 3.71%. WH Smith PLC had an annual average earnings growth of 9.9% over the past five years.

See more of Francisco Garcia Paramesportfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Francisco Garcia Parames.


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Rating: 5.0/5 (8 votes)

Comments

vgm
Vgm - 1 year ago
Holly,

Thanks. This guy is very good in my opinion - and has a strong team in support.

Can I ask what was your source for the information on his stock picks?
gurufocus
Gurufocus premium member - 1 year ago
The original portfolio was from fund filings to Spanish regulatory organizations. As mentioned before, in the filings there were no share numbers. We had to divide the value by the stock price to get the share number. There might be small rounding errors in share numbers.
vgm
Vgm - 1 year ago
Thanks

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