The Bestinfond (Trades, Portfolio) fund is part of Spanish investing firm Bestinver. The fund seeks undervalued companies with long-term upside potential. Currently, 20-25% of the portfolio is in Spanish equities, with the remaining percentage in foreign equities.
Bestinfond (Trades, Portfolio)’s fund managers are Beltran de la Lastra and Ricardo Canete Lopez. De la Lastra worked for 18 years at JP Morgan in London, and joined Bestinver in 2014. Lopez is the former manager of Eurovalor Bolsa Española, an award-winning fund that consistently outperformed benchmarks.
The following are the five largest new buys during the fourth quarter:
Volkswagen AG (XTER:VOW3, Financial)
Bestinfond (Trades, Portfolio)’s largest new holding during the quarter is 115,148 shares in Volkswagen at an average price of €171.29 per share. The automaker now comprises 1.8% of the portfolio.
The Volkswagen Group consists of 12 brands: Volkswagen Passenger Cars, Audi, SEAT, Å KODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Volkswagen has a 12.8% share of the world passenger car market, and one in four new cars in Western Europe is made by the company.
One warning sign for the stock is the Z-score of 0.94. The Z-score calculation predicts failure up to two years prior to distress. A score of less than 1.81 indicates the company is in distress.
The Invesco European Growth Fund (Trades, Portfolio) sold out of its shares in Volkswagen in April 2014.
Carrefour (XPAR:CA, Financial)
The fund purchased 763,909 shares of Carrefour at an average price of €23.87 per share, which now accounts for 1.6% of the portfolio.
Carrefour is a France-based grocery store chain that operates hypermarkets, supermarkets, and convenience stores. The company has more than 10,000 stores in 34 countries in Europe, Latin America, and Asia.
Over the past five years, the company’s revenue growth has declined 4.7%. Carrefour’s balance sheet is also weak, with a current ratio of 0.84. A ratio of less than 1 indicates Carrefour cannot cover its short-term obligations.
The current P/E ratio is 16.8, which is near the low-end of the company’s 10-year range.
Pfizer (PFE, Financial)
Bestinfond (Trades, Portfolio) purchased 635,978 shares of biopharmaceutical company Pfizer at an average price of $30.21 per share. The new position accounts for 1.4% of the portfolio.
Pfizer’s key over-the-counter products include Advil, Robitussin, Chapstick, Centrum, and Thermacare, while some of its well-known prescription products include Viagra, Zoloft, Lyrica, and Celebrex.
The company’s stock has been steady over the past year, going up by 1%. When comparing the stock price to the Peter Lynch earnings line, the chart suggests Pfizer may be overvalued.
Pfizer’s current P/E ratio is 22.3, the highest it has been since FY 2005.
GlaxoSmithKline (LSE:GSK, Financial)
The fund continued to add to its healthcare sector holdings with 668,556 shares in GlaxoSmithKline at an average price of £14.13 per share. The holding comprises 1% of the portfolio. Bestinfond (Trades, Portfolio) had previously held shares in the first quarter of 2014, but sold out of the position in the third quarter.
GlaxoSmithKline produces and markets vaccines, OTC products, and other health-related consumer products.
The company’s free cash flow has struggled to grow over the past five years, declining by more than 6%.
The current P/E ratio is 17.
Publicis Groupe SA (XPAR:PUB, Financial)
Bestinfond (Trades, Portfolio) purchased 186,451 shares of Publicis Groupe during the quarter for an average price of €56.09 per share.
Publicis Groupe is the third largest communications group in the world and employs more than 63,000 professionals. The company’s three business segments are advertising, specialized agencies and marketing services (SAMS), and media advice and purchasing.
GuruFocus rates the company’s business predictability as 4 out of 5 stars due to the consistent revenue and earnings growth.
The stock has been up 3% over the past year. The DCF model projects a fair value of €48.57, which gives a -37% margin of safety.
To view Bestinfond (Trades, Portfolio)’s latest stock picks, click here. Not a Premium Member of GuruFocus? Try it free for 7 days.
Bestinfond (Trades, Portfolio)’s fund managers are Beltran de la Lastra and Ricardo Canete Lopez. De la Lastra worked for 18 years at JP Morgan in London, and joined Bestinver in 2014. Lopez is the former manager of Eurovalor Bolsa Española, an award-winning fund that consistently outperformed benchmarks.
The following are the five largest new buys during the fourth quarter:
Volkswagen AG (XTER:VOW3, Financial)
Bestinfond (Trades, Portfolio)’s largest new holding during the quarter is 115,148 shares in Volkswagen at an average price of €171.29 per share. The automaker now comprises 1.8% of the portfolio.
The Volkswagen Group consists of 12 brands: Volkswagen Passenger Cars, Audi, SEAT, Å KODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Volkswagen has a 12.8% share of the world passenger car market, and one in four new cars in Western Europe is made by the company.
One warning sign for the stock is the Z-score of 0.94. The Z-score calculation predicts failure up to two years prior to distress. A score of less than 1.81 indicates the company is in distress.
The Invesco European Growth Fund (Trades, Portfolio) sold out of its shares in Volkswagen in April 2014.
Carrefour (XPAR:CA, Financial)
The fund purchased 763,909 shares of Carrefour at an average price of €23.87 per share, which now accounts for 1.6% of the portfolio.
Carrefour is a France-based grocery store chain that operates hypermarkets, supermarkets, and convenience stores. The company has more than 10,000 stores in 34 countries in Europe, Latin America, and Asia.
Over the past five years, the company’s revenue growth has declined 4.7%. Carrefour’s balance sheet is also weak, with a current ratio of 0.84. A ratio of less than 1 indicates Carrefour cannot cover its short-term obligations.
The current P/E ratio is 16.8, which is near the low-end of the company’s 10-year range.
Pfizer (PFE, Financial)
Bestinfond (Trades, Portfolio) purchased 635,978 shares of biopharmaceutical company Pfizer at an average price of $30.21 per share. The new position accounts for 1.4% of the portfolio.
Pfizer’s key over-the-counter products include Advil, Robitussin, Chapstick, Centrum, and Thermacare, while some of its well-known prescription products include Viagra, Zoloft, Lyrica, and Celebrex.
The company’s stock has been steady over the past year, going up by 1%. When comparing the stock price to the Peter Lynch earnings line, the chart suggests Pfizer may be overvalued.
Pfizer’s current P/E ratio is 22.3, the highest it has been since FY 2005.
GlaxoSmithKline (LSE:GSK, Financial)
The fund continued to add to its healthcare sector holdings with 668,556 shares in GlaxoSmithKline at an average price of £14.13 per share. The holding comprises 1% of the portfolio. Bestinfond (Trades, Portfolio) had previously held shares in the first quarter of 2014, but sold out of the position in the third quarter.
GlaxoSmithKline produces and markets vaccines, OTC products, and other health-related consumer products.
The company’s free cash flow has struggled to grow over the past five years, declining by more than 6%.
The current P/E ratio is 17.
Publicis Groupe SA (XPAR:PUB, Financial)
Bestinfond (Trades, Portfolio) purchased 186,451 shares of Publicis Groupe during the quarter for an average price of €56.09 per share.
Publicis Groupe is the third largest communications group in the world and employs more than 63,000 professionals. The company’s three business segments are advertising, specialized agencies and marketing services (SAMS), and media advice and purchasing.
GuruFocus rates the company’s business predictability as 4 out of 5 stars due to the consistent revenue and earnings growth.
The stock has been up 3% over the past year. The DCF model projects a fair value of €48.57, which gives a -37% margin of safety.
To view Bestinfond (Trades, Portfolio)’s latest stock picks, click here. Not a Premium Member of GuruFocus? Try it free for 7 days.
