Another name we bought this quarter was Heineken (XAMS:HEIA, Financial), the number two global beer company. While we still own Anheuser-Busch InBev (XBRU:ABI, Financial), we partially trimmed our position as the share price bounced back vigorously. In our opinion, Heineken offers a larger discount and less downside risk, especially as it is a lot less levered financially than ABI. The company is family owned, maintains a long-term oriented culture and has a good record of capital allocation. It lagged ABI on the rebound due to more on-trade consumption, which was negatively affected by the pandemic lockdowns in the U.S. and Europe.
From Charles de Vaulx (Trades, Portfolio)'s IVA Worldwide Fund third-quarter 2020 commentary.
