Charles de Vaulx

Charles de Vaulx Premium Guru

Last Update: 09-11-2017
Related: IVA International Fund

Number of Stocks: 76
Number of New Stocks: 1

Total Value: $4,136 Mil
Q/Q Turnover: 2%

Details: Top Buys | Top Sales | Top Holdings  Embed:

Charles de Vaulx Watch

  • IVA Worldwide Fund 3rd Quarter Commentary

    The IVA Worldwide Fund Class A (NAV) (“the Fund”) ended the quarter on September 30, 2017 with a return of 3.29% versus the MSCI All Country World Index (Net)(“Index”) return of 5.19% bringing YTD performance to 11.46% versus the Index return of 17.25% for the same period.

    The third quarter was another period of positive performance and low volatility for global markets. A few concerns (including U.S./ North Korea relations and a recurrence of devastating hurricanes) temporarily deterred investors, but not enough to change the course of market valuations. It seems that the overriding determinant of valuations continues to be ultra-low interest rates, which have convinced (if not forced) investors to pay up for securities as they see no viable alternative.


  • IVA International Fund 2nd Quarter Letter

    The IVA International Fund (Trades, Portfolio) Class A (NAV) ("the Fund") ended the quarter on June 30, 2017 with a return of 3.76% versus the MSCI All Country World Index (ex-U.S.) (Net) ("Index") return of 5.78%, bringing YTD performance to 10.27% versus the Index return of 14.10% for the same period.

    Global markets continued to rise this quarter and volatility remained low. The only notable exception came at the end of the quarter when remarks by the European Central Bank and the Bank of England signaled an eventual end to quantitative easing. This, along with recent interest rate rises in the U.S. and "hawkish" statements by the U.S. Federal Reserve, served as a reminder to markets that the historically accommodative monetary policy buoying global equities may not last forever.  

  • IVA Worldwide Fund 2nd Quarter Review

    The IVA Worldwide Fund Class A (NAV) ("the Fund") ended the quarter on June 30, 2017 with a return of 2.51% versus the MSCI All Country World Index (Net)("Index") return of 4.27%, bringing YTD performance to 7.35% versus the Index return of 11.48% for the same period.


  • United Breweries' Principal Shareholder in Legal and Financial Trouble

    United Breweries Ltd. (NSE:UBL) is an Indian brewer that markets Kingfisher beer and is partially owned by Heineken (XAMS:HEIO)(HEINY). The company’s principal shareholder, Vijay Mallya, is in legal and financial trouble. The stock was recently purchased by IVA Funds.

    The stock trades for 811 rupees ($12.59), there are 264.4 million shares and the market cap is 218 billion rupees ($3.4 billion). It takes 64.4 rupees to buy one dollar. The dividend is 1.15 rupees and the dividend yield is .0014%. Earnings per share are 8.7 rupees and the price-earnings (P/E) ratio is 93.2.


  • Charles de Vaulx Picks 5 Stocks for His Fund, IVA International

    Charles de Vaulx (Trades, Portfolio), chief investment officer and portfolio manager of International Value Advisers, disclosed his first-quarter portfolio this week, listing five new positions.

    The stocks purchased were during the period were: KT&G Corp. (XKRX:033780), United Breweries Co. Inc. (NYSE:CCU), Totvs SA (BSP:TOTS3), DongKook Pharmaceuticals Co. Ltd. (XKRX:086450) and Whanin Pharm Co. Ltd. (XKRX:016580). The entire portfolio lists 92 equities, collectively valued around $2.4 billion, with most capital allocated to the industrial, consumer cyclical and technology sectors.


  • Charles de Vaulx Picks 2 Stocks for His Fund, IVA Worldwide

    Charles de Vaulx (Trades, Portfolio), chief investment officer and portfolio manager at International Value Advisers, reported a first-quarter portfolio that contained two new stocks purchased over the period.

    For the IVA Worldwide Fund, de Vaulx and his fellow managers purchased the stocks: Ralph Lauren Corp. (NYSE:RL) and KT&G Corp. (XKRX:033780). The positions are relatively small in the portfolio, which lists 78 equities. At June 2, they had a collective value of $4.14 billion, with the majority of capital allocated to the industrials, financial services and consumer cyclical sectors.


  • FPA Capital Sells DeVry, Western Digital, Helmerich & Payne

    FPA Capital Fund (Trades, Portfolio) manages a portfolio composed of 23 stocks with a total value of $500 million. The company seeks long-term growth through investing primarily in carefully selected common stocks and select fixed income securities. During the first quarter it sold shares in the following stocks:

    The guru reduced its shares in DeVry Education Group Inc. (DV) by 34.83% and the transaction had an impact of -1.79% on the portfolio.


  • Charles de Vaulx Comments on Gold

    Gold (GLD) was up 8.4% this quarter and contributed 0.5% to performance. As of March 31, 2017, our gold exposure was 5.8%. Considering the many unknowns and fragilities in this investment environment, we remain happy to hold a modest yet not insignificant allocation to gold in the form of gold bullion.

    From Charles de Vaulx (Trades, Portfolio)'s IVA Worldwide Fund first quarter 2017 commentary.   

  • Charles de Vaulx's IVA Worldwide Fund First Quarter 2017 Quarterly Review

    The IVA Worldwide Fund Class A (NAV) ("the Fund") ended the quarter on March 31, 2017 with a return of 4.72% versus the MSCI All Country World Index (Net) ("Index") return of 6.91% for the same period.


  • IVA International Fund Gains 5 New Holdings in 4th Quarter

    The IVA International Fund (Trades, Portfolio) gained five new holdings during the fourth quarter of 2016. They are Beyerische Motoren Werke AG (XTER:BMW), Airbus Group AG (XPAR:AIR), Grupo Comercial Chedraui SAB de CV (MEX:CHDRAUIB), Doshisha Co. Ltd. (TSE:7483) and Bollore SA (XPAR:BOLNV).

    Established in October 2008, the fund is managed by Charles de Vaulx (Trades, Portfolio) and Charles de Lardemelle of International Value Advisers LLC. They also manage the IVA Worldwide Fund. The portfolio managers invest in various securities and asset classes from international markets in order to achieve long-term growth of capital. The fund’s portfolio consists of 87 stocks and is valued at around $2.06 million.


  • IVA Funds 2016 Year in Review

    Despite a few bouts of market volatility (the first six weeks of the year as well as briefly after the Brexit vote), 2016 was most notable for extraordinary political developments which have the potential to shape markets for years to come. Although the possibility of the UK voting to leave the EU had been on investors’ minds for months, most everyone was surprised by the outcome of the referendum on June 23 and markets recoiled. They may have quickly recovered, but the magnitude of the vote’s ultimate financial and political consequences are still unknown. And then on November 8, Donald Trump became President-Elect of the United States. This stunning turn of events was followed by a less dramatic, but still crucial, vote of ‘No’ in an Italian referendum on constitutional reform, forcing Prime Minister Matteo Renzi to resign. These events indicate a rising tide of populism in many countries (the U.K., Continental Europe and the U.S.) as well as growing resentment of both rising wealth and income inequalities. A global move towards populism could have significant implications, including a revival of trade tensions and protectionism and ultimately a possible break-up of the Eurozone. In addition, with largely ineffective economic policies followed since the Great Financial Crisis, there is a growing chorus of voices arguing for a shift from monetary policy to fiscal spending and to policies that favor labor over owners of capital. These shifts could result in lower corporate profits and rising interest rates, which have the potential to act as significant headwinds to both bonds and equities. Since the U.S. election we have already seen bonds struck with the reality that inflation and higher interest rates will most likely be a byproduct of any fiscal stimulus package initiated by Trump and a Republican-controlled Congress. Equity valuations remain at elevated levels, but the U.S. Federal Reserve began raising rates in December (and strongly suggested there would be additional rate increases in 2017) and the European Central Bank and the Bank of Japan may at some point signal an end to their bond-buying programs. Having floated on ultra-low interest rates for so long, equities could face a difficult transition as rates normalize and prices begin to align with fundamentals. In addition to shifting political tides and their unknown consequences, we continue to have concerns over unprecedented credit growth in China (especially in regards to struggling State-Owned Enterprises). There is also the possibility that the U.S. dollar will appreciate further against multiple currencies in the years ahead, hurting on one hand the many U.S. companies that derive a significant portion of their earnings overseas but also the performance in U.S. dollar terms of many non-U.S. stocks if one were to be unhedged from a currency standpoint. The many emerging market companies that have borrowed extensively in USD would suffer as well. We also continue to worry about the sustainability of the often high profit margins of companies in light of the many disruptions facing their industries. The cautious positioning of our portfolio is in large part a result of all of these considerations.


  • Charles de Vaulx Invests in 6 New Holdings

    Charles de Vaulx (Trades, Portfolio), chief investment officer and portfolio manager at International Value Advisers LLC, made half a dozen new buys in the third quarter.

    The guru purchased 130,628 shares of Baidu Inc. (NASDAQ:BIDU), a Chinese Web services company headquartered in Beijing, for an average price of $173.03 per share. The transaction had a 0.55% impact on the portfolio.


  • IVA Worldwide Fund 3rd Quarter Commentary

    The IVA Worldwide Fund Class A (NAV) (“the Fund”) ended the quarter on September 30, 2016 with a return of 3.73% versus the MSCI All Country World Index (Net) (“Index”) return of 5.30% bringing YTD performance to 5.70% versus the Index return of 6.60% for the same period.

    Despite bouts of volatility throughout the quarter, primarily related to anxieties over Central Bank actions and inactions, the markets were relatively quiet. The last few weeks were an exception, when Deutsche Bank concerns hit a crescendo, dragging down European bank shares and igniting fears about their overall health. We have expressed these same concerns for some time now and have therefore largely avoided European banks in our portfolio. Our cautious positioning continues to reflect our other concerns, including large credit excesses in China and prolonged Central Bank manipulations. We will expand upon this later on in our update.


  • IVA Funds Comments on Emerson

    Well, Deere (NYSE:DE) is a much finer business. They are world-class. It's much more oligopolistic. The returns of capital over a full cycle dwarf I believe what they are with other fertilizer companies. Yes, the answer is that we've looked at both. There's a clear price at which we would love to own Deere. But, in the fertilizer space, and understand there's a proposed merger going on, we have found it difficult to find one company that truly has much lower costs than the other. In a commodity business, if you can find a company that structurally has much lower cost than another, it helps assure you that they will be a survivor if and when commodity prices are low, and then the company may in fact capitalize during times of low prices to maybe increase its market share position.

    So, we have not been able to identify, at least yet, a fertilizer company that really stands out in terms of quality and being lower cost than others.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • IVA Funds Comments on Emerson

    Question: You hold Emerson Electric. It's always acquired a lot of companies over the years. Do you think it could be anything like a Valeant, who acquired a lot of companies over the years, or have some characteristics like that?

    Chuck de Lardemelle: No, not at all. Emerson (NYSE:EMR) has a very strong track record of making smart acquisitions, spending some Research and Development. Now, over the last few years, they've diversified into a business that they are now trying to spin off and making a number of acquisitions in uninterruptible power supplies/electronics. That vertical, if you will, has not worked out at all for Emerson, and they are going back to basics and spinning off or selling that division. The balance sheet is extremely strong, which is absolutely not the case of a Valeant.

    Emerson is in no position to hike prices and gouge clients. It's a very strong industrial company that is extremely well managed from an operational point of view, that has a strong balance sheet, and has not been able to hike prices substantially. However, again, over the last few years, they've gathered a collection of companies in one segment and those acquisitions turned out to be a mistake. And that's what provided us with an opportunity to get into Emerson. And they recognized their mistake and are now trying to correct it. So, in no way, shape, or form is it similar to a Valeant, in our opinion.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • IVA Funds Comments on Samsung Electronics

    Moving on to another large position, Samsung Electronics (XKRX:000830) is up substantially from its lows this year, and therefore not as attractive as it used to be. However, the balance sheet is pristine, the company sells not too far from tangible book value, and we believe the semiconductor franchise is highly profitable and solid. As for the telecom handset franchise, well, I'm sure you'll remember Motorola, Nokia, Siemens, SAGEM, or Sony Ericsson handset businesses? Yes, they all went out of business.

    So, what do we see there? Why should it be different for Samsung Electronics? Well, SmartPhones today are computers; capital employed in the business is very low. Basically, Samsung simply assembles the mini-computers. It's a business model akin to the Dell business model, not to a Nokia. The industry has consolidated; through its scale, Samsung is able to achieve buying power and a low-cost position; and through the advanced manufacturing of display components and semiconductors, Samsung has an edge in innovation. We anticipate this business may remain profitable in the future, with single-digit operating margin being sustainable despite heavy Chinese competition. Capital allocation and governance have been issues in the past for the Samsung Group. There are encouraging signs on both fronts. Time will tell.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • IVA Funds Comments on Berkshire Hathaway

    Next, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) still sells at a discount to our estimate of its intrinsic value. We believe Buffett and his successors are likely to be able to compound at a reasonable pace, particularly due to the ability to buy listed or unlisted companies in their entirety. A few looming technological innovations, though may be tough for some of Berkshire's businesses: driverless cars would negatively impact insurance subsidiary Geico, while driverless trucks would be a large negative for the railroad business, Burlington Northern. If battery technology continues to improve, at some point the storage of electricity will make renewable energy a lot more competitive against traditional utilities, a risk for Berkshire Hathaway Energy.

    This conglomerate, however, is well equipped to deal with obsolescence: after all, Berkshire is quite unique in its ability to take cash flow from mature or declining business A to invest successfully in a totally unrelated business B. Hopefully the lack of red tape, the investment culture, the candor, and the ethics on display at Berkshire will survive both Warren and Charlie.

    From Charles de Vaulx (Trades, Portfolio)'s semi-annual 2016 IVA Funds call.   

  • Charles de Vaulx's IVA Funds Semi-Annual Update Call Transcript

    Tara Hannigan: Thank you. Good afternoon, and welcome to the Semi-Annual IVA Funds Update Call. We thank you for joining us this afternoon. I'm Tara Hannigan, the Director of Mutual Fund Distribution. Our goals on this call are to update you on the funds and share our current investment thinking. Our portfolio managers, Charles De Vaulx and Chuck de Lardemelle, will give you prepared remarks explaining what they're seeing around the world today, and then we will open the call up to questions.

    To update you on IVA as a firm as of August 31, 2016, we had approximately $18.5 billion in total assets under management with our two mutual funds comprising just over $12.3 billion of that total. Both funds do remain closed to new investors.


  • IVA International Gains 4 in 2nd Quarter

    IVA International Fund (Trades, Portfolio) acquired four new holdings in the second quarter. They are Fanuc Corp. (TSE:6954), Euler Hermes Group SA (XPAR:ELE), Yokogawa Electric Corp. (TSE:6841) and Jardine Lloyd Thompson Group PLC (LSE:JLT).

    IVA International was established in 2008 by International Value Advisers and is managed by Charles de Lardemelle and Charles de Vaulx (Trades, Portfolio). The fund seeks long-term growth of capital and invests in a variety of securities and asset classes from markets around the world. The fund utilizes in-house, fundamental research conducted by analysts to aid in their decision-making process.


  • Charles de Vaulx Hikes Stake in Hyundai Motors

    Morocco native Charles de Vaulx (Trades, Portfolio) more than tripled his stake in Hyundai Motor Co. (XKRX:005380) during the second quarter.

    De Vaulx is the portfolio manager of the IVA Worldwide Fund, which focuses on long-term growth of capital through investing in a range of securities and asset classes from markets around the world. In the second quarter de Vaulx added 283,248 shares of Hyundai at an average price of 141,280 South Korean won ($126.16) per share.


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