One of our newest international gurus, Francisco Garcia Paramés, reported his first quarter portfolio changes yesterday. Paramés is a self-taught value investor from Madrid, Spain, who strictly adheres to the value management of Graham, Buffett and Lynch. The guru is the chief investment officer of Bestinver Asset Management and has often been referred to as the “Spanish Warren Buffett.”
During the first quarter the Spanish guru sold out of fourteen companies and bought into eleven new ones. As of the close of the fourth quarter, Paramés’ portfolio contained 101 international stocks valued at over $1.8 billion.
Bayerische Motoren Werke (XTER:BMW3)
Francisco Paramés’ largest position is in the German auto maker Bayerische Motoren Werke (XTER:BMW3) where the guru holds on to 1,951,830 shares of the company’s stock. His position in BMW represents 7.3% of his total portfolio.
BMW was Paramés’ largest position last quarter as well, and over the first quarter he upped his stake by 9.36%. The guru added a total of 167,066 shares in the price range of €59.08 to €68.30, with an estimated average quarterly price of €62.81. Since then the price per share has increased approximately 11.6%.
Paramés has held a position in BMW since 2012Q2 and has seen average gains of around 58%. The guru’s historical holding history as of the close of the first quarter:
Bayerische Motoren Werke, or BMW, manufactures automobiles and motorcycles worldwide. The company's activities are divided into three segments: Automobiles, Motorcycles and Financial Services.
BMW3’s historical revenue and net income:
The analysis on BMW reports that the company’s operating margin expanding, its revenue has been in decline over the past year and its price is nearing a 10-year high.
Francisco Garcia Paramés is the only guru shareholder of XTER:BMW3.
The analysis on BMW reports that the company’s revenue has slowed down over the past year, its price is near a 10-year high and its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Bayerische Motoren Werke has a market cap of €54.38 billion. Its shares are currently trading at around €70.07 with a P/E ratio of 11.10, a P/S ratio of 0.72 and a P/B ratio of 1.54.
GuruFocus rated BMW the business predictability rank of 2-star.
Wolters Kluwer NV (XAMS:WKL)
The guru’s second largest position is in Wolters Kluwer where he owns 5,242,417 shares of the company’s stock. His position in the company represents 5.9% of his total portfolio and 1.77% of the company’s shares outstanding.
Paramés increased his position in Wolters Kluwer 6.86% over the first quarter by purchasing 336,416 shares of the company’s stock. He bought this stock in the price range of €19.81 to €22.02, with an estimated quarterly price of €20.79. Since then the price per share has dropped approximately -4.4%.
The guru has held a position in the company since 2012Q2, and has seen average gains of 51%. Paramés’ historical holding history:
Wolters Kluwer is a leading global information services and publishing company. The company provides products and services globally for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors.
Wolters Kluwer’s historical revenue and net income:
Francisco Garcia Paramés is the only guru shareholder of XAMS:WKL.
The analysis on Wolters Kluwer reports that the company’s operating margin is expanding, its dividend yield is at a 5-year low and its price is near a 5-year high.
The Peter Lynch Chart suggests that the company currently appears to be overvalued:
Wolters Kluwer has a market cap of €5.87 billion. Its shares are currently trading at around €19.88 with a P/E ratio of 17.30, a P/S ratio of 1.67 and a P/B ratio of 3.72. The company had an annual average earnings growth of 4.3% over the past ten years.
GuruFocus rated the company the business predictability rank of 2.5-star.
EXOR Spa (MIL:EXO)
Paramés’ third largest position is in EXOR where the guru holds on to 2,920,496 shares. His holdings make up for 5.2% of his total portfolio and 1.82% of the company’s shares outstanding.
Over the duration of the quarter the guru reduced his position -15.54% by selling a total of 537,269 shares. He sold these shares in the price range of €28.16 to €32.87, with an estimated average quarterly price of €29.96. Since then the price per share has increased about 10%.
Paramés bought into the company in the second quarter of 2013, and since then has seen average gains of 40% on his shares bought. Paramés’ historical holding history as of the first quarter:
EXOR S.p.A. is one of Europe’s leading investment companies and is controlled by the Agnelli Family. It has a net asset value of over 8.5 billion euros. EXOR makes long-term investments focused on global companies in diversified sectors, mainly in Europe in the U.S.
EXOR’s historical revenue and net income:
The Peter Lynch Chart suggests that the company is currently undervalued:
EXOR S.p.A. has a market cap of €8.11 billion. Its shares are currently trading at around €32.95 with a P/E ratio of 3.90, a P/S ratio of 0.08 and a P/B ratio of 1.29. The company had an annual average earnings growth of 197.2% over the past five years.
Thales (XPAR:HO)
Francisco Paramés’ fourth largest holding is in Thales where he holds on to 1,837,329 shares of the company’s stock. His position in Thales represents 5.7% of his total portfolio and 0.91% of the company’s shares outstanding.
During the first quarter Paramés increased his position 2.68% by increase 197,567 shares of Thales stock. He sold these shares in the first quarter price range of €46.35 to €49.23, with an estimated average quarterly price of €47.76 per share. Since then the price per share is down about -6.4%.
Paramés’ holding history as of the close of the first quarter:
Thales is a French multinational company that designs and builds electrical systems and provides services for the aerospace, defense, transportation and security markets.
Thales’ historical revenue and net income:
The analysis on Thales reports that the company’s price is near a 10-year high and its P/S ratio is near a 5-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Thales has a market cap of €9.09 billion. Its shares are currently trading at around €44.72 with a P/E ratio of 15.90, a P/S ratio of 0.64 and a P/B ratio of 1.93. The company had an annual average earnings growth of 19.70% over the past five years.
Hyundai Motor (XKRX:005387)
Paramés fifth largest holding goes to Hyundai Motor Co, as traded on the South Korean markets. The guru holds on to 595,512 shares of the company’s stock, representing 3.4% of his total assets managed.
Over the past quarter Paramés upped his stake 30.1% by purchasing 137,794 shares of the company’s stock. He bought these shares near the average quarterly price of â‚©135361 per share, and since then the price per share is up approximately 7.1%.
Paramés’ historical holding history of Hyundai Motor:
Hyundai Motor Company manufactures and distributes motor vehicles and vehicle parts. Its business is segmented into two - Vehicle and Finance.
Hyundai Motor’s historical revenue and net income:
The GuruFocus analysis on Hyundai Motor reports that the company’s asset growth has been faster than its revenue growth over the past three years, indicating that the company could be getting less efficient.
Check out the entirety of Francisco Garcia Paramés’ fourth quarter portfolio.
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