Charles de Vaulx (Trades, Portfolio), manager of the IVA Worldwide Fund, disclosed he established one new position during the first quarter and closed two others.
De Vaulx, who manages the fund along with Charles de Lardemelle, invests in a number of diverse securities and asset classes around the world in order to achieve long-term capital growth.
During the quarter, the guru opened a position in Acuity Brands Inc. (AYI, Financial) and divested of Hyundai Elevator Co. Ltd. (HKSE:017800, Financial) and Wendel SE (XPAR:MF, Financial).
Acuity
De Vaulx invested in 521,183 shares of Acuity for an average price of $153.84 per share, allocating 1.68% of the portfolio to the holding.
The Atlanta-based manufacturer of lighting systems has a market cap of $4.89 billion; its shares were trading around $119.61 on Wednesday with a price-earnings ratio of 14.76, a price-book ratio of 2.97 and a price-sales ratio of 1.43.
The Peter Lynch chart below shows the stock is trading near its fair value.
Acuity’s financial strength and profitability and growth were both rated 7 out of 10 by GuruFocus. While the company has been issuing new long-term debt over the past several years, it is still at a manageable level. In addition, the Altman Z-Score of 5.66 indicates the company is in good financial standing. Although the company is supported by an expanding operating margin, which currently outperforms 86% of competitors, it has a moderate Piotroski F-Score of 4 and a business predictability rating of one out of five stars.
With his purchase of 1.27% of the company’s outstanding shares, de Vaulx became the company’s largest guru shareholder. Lee Ainslie (Trades, Portfolio) and Ray Dalio (Trades, Portfolio)’s Bridgewater also established positions during the quarter. Ron Baron (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), John Rogers (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) also own the stock.
Hyundai Elevator
After initiating a position in Hyundai Elevator in the fourth quarter of 2017, the guru switched gears and sold all 317,438 shares for an average price of 62,971.9 won ($152.69) per share. The trade had an impact of -0.36% on the portfolio. GuruFocus data shows de Vaulx gained an estimated 18% on the investment.
The South Korean company, which manufactures elevators, escalators and moving sidewalks, has a market cap of 3.05 trillion won; its shares closed at 124,000 won on Tuesday with a price-earnings ratio of 83.73, a price-book ratio of 3.58 and a price-sales ratio of 1.64.
According to the Peter Lynch chart below, the stock is overpriced since it is trading higher than its fair value.
GuruFocus rated both Hyundai Elevator’s financial strength and profitability and growth 6 out of 10. As the company has issued approximately 157.7 billion won in new long-term debt over the past three years, the Altman Z-Score of 2.59 indicates it is under some financial pressure. The company is also supported by an expanding operating margin, a moderate Piotroski F-Score of 6 and a one-star business predictability rating.
No other gurus currently hold the stock.
Wendel
De Vaulx cashed in on his remaining 41,301 shares of Wendel, selling them for an average price of 184.07 euros ($216.84) per share. The trade had an impact of -0.16% on the portfolio. GuruFocus estimates he has gained 84% on the investment since establishing the position in the third quarter of 2016.
The investment company, which is headquartered in France, has a market cap of 5.25 billion euros; its shares closed at 115.5 euros on Tuesday with a price-earnings ratio of 27.24, a price-book ratio of 2.43 and a price-sales ratio of 0.63.
Based on the Peter Lynch chart below, the stock appears to be overpriced as it is trading well above its fair value.
Wendel’s financial strength was rated 4 out of 10 by GuruFocus. Supported by an extremely low level of interest coverage, the company’s Altman Z-Score of 1.22 indicates it is in financial distress, meaning it is at risk of going bankrupt. The company’s profitability and growth fared much better, however, scoring an 8 out of 10 rating. While the company’s operating margin is declining and underperforms 71% of peers, it has a high Piotroski F-Score of 8, which indicates stable business conditions. In addition, the company has a one-star business predictability rating.
No other gurus are invested in Wendel.
Other trades
During the quarter, de Vaulx expanded his positions in Cimarex Energy Co. (XEC, Financial), Koninklijke Boskalis Westminster NV (XAMS:BOKA, Financial) and Samsung Electronics Co. Ltd. (XKRX:005930), among others. He also pared several holdings, including Astellas Pharma Inc. (TSE:4503), Fanuc Corp. (TSE:6954) and Bank of America Corp. (BAC).
The $8.2 billion portfolio, which is composed of 96 holdings, is largely invested in the financial services and industrials sectors. According to the fact sheet, IVA’s Worldwide Fund has posted an -0.11% return year to date, while the MSCI All Country World Index has posted a return of -0.96% for the same period.
Disclosure: No positions.
