Cobas Asset Management, the firm founded by Francisco Garcia Parames (Trades, Portfolio), disclosed this week that its top five trades during the fourth quarter of 2020 include position boosts in Atalaya Mining PLC LSE:ATYM and Golar LNG Ltd. GLNG and the closure of positions in Spire Healthcare Group PLC LSE:SPI and Melia Hotels International SA XMAD:MEL. The fund also reduced its holding of Cairn Energy PLC LSE:CNE.
A self-taught follower of Berkshire Hathaway Inc. BRK.ABRK.B CEO Warren Buffett (Trades, Portfolio)'s investment approach, Parames produced during his 25-year tenure at Bestinfond (Trades, Portfolio) portfolio returns that rank among top European asset managers in the "value" school.
Cobas said in its shareholder letter that the firm's funds outperformed the benchmark during the quarter, adding further that the trend is likely to continue as the funds still contain several companies trading at a discount to fair value.
As of the quarter-end, Cobas' $535 million equity portfolio contains 54 stocks with a turnover ratio of 7%. The fund's top three sectors in terms of weight are energy, industrials and consumer cyclical, representing 27.62%, 25.14% and 23.44% of the equity portfolio.
Atalaya Mining
Cobas purchased 2,079,435 shares of Atalaya Mining LSE:ATYM, increasing the position 45.44% and the equity portfolio 1.04%. Shares averaged 1.98 pounds ($2.74) during the fourth quarter of 2020.
Atalaya Mining produces copper concentrates at the company's Proyecto Riotinto site in Southwest Spain. Cobas said in its letter that the firm increased its holding on the belief that the company may benefit from the development of its E-LIX System.
GuruFocus ranks the company's financial strength 8 out of 10 on several positive investing signs, which include triple-digit interest coverage and a Beneish M-score that suggests little or no earnings manipulation.
Golar
The firm purchased 544,558 shares of Golar GLNG, increasing the position 14.86% and the equity portfolio 0.81%. Shares averaged $8.72 during the fourth quarter of 2020.
GuruFocus ranks the Bermuda-based liquefied natural gas company's financial strength 3 out of 10 on several warning signs, which include a weak Altman Z-score and debt ratios that underperform over 80% of global competitors. Despite this, Golar has a high Piotroski F-score of 7 and a safe Beneish M-score of -3.
Other gurus with holdings in Golar include Ron Baron (Trades, Portfolio)'s Baron Funds and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management.
Spire Health Group
The firm sold 3,372,730 shares of Spire Health Group LSE:SPI, trimming the equity portfolio 0.84%. Shares averaged 1.3 pounds ($1.80) during the fourth quarter of 2020.
Spire Health Group provides a wide range of health care services through a network of hospitals and specialty care centers throughout the U.K. GuruFocus ranks the company's financial strength 3 out of 10 on several warning signs, which include interest coverage and debt ratios underperforming over 83% of global competitors.
Melia Hotels
The firm sold 838,978 shares of Melia Hotels XMAD:MEL, trimming the equity portfolio 0.62%. Shares averaged 4.5 euros ($5.46) during the fourth quarter of 2020.
GuruFocus ranked the Spanish hotel operator's financial strength 2 out of 10 on several warning signs, which include a low Piotroski F-score of 2 and a debt-to-equity ratio that underperforms over 80% of global competitors.
Cairn Energy
The firm sold 1,805,801 shares of Cairn Energy LSE:CNE, trimming the position 37.15% and the equity portfolio 0.80%. Shares averaged 1.89 pounds ($2.61) during the fourth quarter of 2020.
GuruFocus ranks the U.K.-based energy company's financial strength 4 out of 10: Although the company has a high Piotroski F-score of 7, Cairn Energy's cash-to-debt ratio of 0.33 underperforms over 54% of global competitors.
Disclosure: No positions.
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