Bestinfond (Trades, Portfolio), part of Spain-based asset management firm Bestinver, disclosed this week that its top five buys during the third quarter were in HelloFresh SE XTER:HFG, Ross Stores Inc. ROST, Grifols SA XMAD:GRF, Industria De Diseno Textil SA XMAD:ITX and Berkshire Hathaway Inc. BRK.ABRK.B.
Formerly run by Francisco Garcia Parames (Trades, Portfolio), the fund seeks long-term capital appreciation by applying key value investing principles as taught by Benjamin Graham, Peter Lynch and Warren Buffett (Trades, Portfolio) within the Austrian theory of economic cycles.
Fund announces management change
Bestinver said in its second-quarter shareholder letter that Beltran De La Lastra announced his departure from the firm following over five years of service. The firm appointed Tomas Pinto as head of international equities and manager of the fund.
As of quarter-end, Bestinfond (Trades, Portfolio)'s $1.27 billion equity portfolio contains 83 stocks, with six new holdings and a turnover ratio of 13%. The top three sectors in terms of weight are consumer cyclical, industrials and materials, representing 26.91%, 18.80% and 11.70% of the equity portfolio.
HelloFresh
The fund purchased 600,170 shares of HelloFresh, increasing the position 515.92% and the equity portfolio 2.26%. Shares averaged 44.69 euros ($52.33) during the third quarter.
GuruFocus ranks the German meal-solution company's financial strength 6 out of 10: Even though the company's equity-to-asset ratio outperforms just 64% of global competitors, positive investing signs include a high Piotroski F-score of 7, a strong Altman Z-score of 9.93 and a debt-to-Ebitda ratio that is within Joel Tillinghast's safe threshold of 4 and outperforms over 91% of global competitors.
Ross Stores
The fund purchased 240,897 shares of Ross, giving the position 1.53% weight in the equity portfolio. Shares averaged $89.77 during the third quarter.
GuruFocus ranks the California-based off-price retailer's profitability 9 out of 10, driven primarily by a 4.5-star business predictability rank and a return on equity that outperforms over 87% of global competitors.
Grifols
The fund purchased 769,947 shares of Grifols, giving the position 1.50% weight in the equity portfolio. Shares averaged 24.69 euros ($28.93) during the third quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.74.
GuruFocus ranks the Spanish drug manufacturer's profitability 8 out of 10 on the back of operating margins outperforming over 82% of global competitors.
Industria De Diseno Textil
The fund purchased 730,924 shares of Industria De Diseno Textil, giving the position 1.38% weight in the equity portfolio. Shares averaged 23.46 euros ($27.49) during the third quarter.
The Spanish fashion conglomerate owns popular brands like Zara and Massimo Dutti. GuruFocus ranks the company's profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins that are outperforming over 87% of global competitors.
Berkshire Hathaway
The fund purchased 86,007 Class B shares of Berkshire, giving the holding 1.24% weight in the equity portfolio. Class B shares of Buffett's conglomerate averaged $204.37 during the third quarter.
GuruFocus ranks the Omaha, Nebraska-based insurance conglomerate's profitability 6 out of 10, driven by a three-star business predictability rank, a net margin that outperforms over 66% of global competitors and a three-year revenue growth rate that outperforms over 70% of global insurance companies.
Disclosure: Long Ross Stores.
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