Francisco Parames has often drawn comparisons to Warren Buffett (Trades, Portfolio) for his dedication to value investing and stellar record. At his former fund, Bestinver, he accumulated 16% in annual returns over his 25-year tenure. Last October, he opened his own Madrid-based investment manager called Cobas Asset Management, where his main fund is Cobas Seleccion FI.
In a fund document, Cobas describes its value investing philosophy for the fund as, “The purchase of good businesses, with sustainable competitive advantage, managed by good professionals and that are priced well below their intrinsic value, thus offering significant long-term upside.”
Three of the stocks in Cobas Seleccion Fund traded near their 52-week low prices as of Thursday: Dynagas LNQ Partners (DLNG, Financial), Hoegh LNG Holdings Ltd. (OSL:HLNG, Financial) and Babcock International Group PLC (LSE:BAB, Financial).
Dynagas LNG Partners (DLNG, Financial)
Dynagas LNG Partners is an owner and operator of liquefied natural gas carriers contracted to energy companies. Its stock is down 16.74% for the past year to $13.28 Thursday afternoon, which is within 3.6% of its 52-week low.
Parames owned 610,396 shares of the company after increasing his position by 99,239 shares in the second quarter when the price averaged $16. The holding occupies 1.16% of his portfolio.
For the second quarter, Dynagas reported $31.98 million in revenue, down from $42.64 million in the prior-year quarter. It also recorded a loss per share of 19 cents, compared to earnings per share of 42 cents for the same period last year.
Hoegh LNG Holdings Ltd. (OSL:HLNG, Financial)
Hoegh LNG Holdings Ltd. is a owner and operator of floating storage and regasification units and an operator of liquefied natural gas carriers.
Parames purchased 362,957 shares of the company in the second quarter when the price averaged 85.68 kroner. The stock traded for 69.50 kroner Thursday afternoon, within 3.7% of its 52-week low.
For the second quarter, Hoegh LNG Holdings increased revenues to $66.2 million from $52.3 million in the same quarter the previous year. Earnings per share totaled 5 cents, rising from 1 cent in the prior-year quarter.
Babcock International Group PLC (LSE:BAB, Financial)
Babcock provides engineering support to a variety of industries such as aviation and nuclear.
Parames held 1,678,018 shares of the company as of the second quarter, which makes it a 2.34% portfolio of his portfolio. He purchased it in the first quarter when the price averaged around 9 pounds per share. As of Thursday afternoon, it traded for 8.26 pounds per share, which measured 4.2% away from its 52-week low.
For Babcock’s most recently reported quarter ended March 31, it grew revenue to 2.37 billion pounds from 2.12 billion pounds in the same quarter of 2016. Net income also increased to 169 million pounds from 163 million the same quarter the previous year.
See Francisco Garcia Parames’ portfolio here.
