In the Iberian portfolio, it has been a very good quarter for our main position in the portfolio, the paper manufacturer Semapa (XLIS:SEM, Financial). The Portuguese company has experienced a significant increase in value, which has led it to new highs, but we still see value in the fundamentals of the company.
The paper market is currently in the low point of the cycle, capacity has decreased considerably in recent years and the company has announced price rises of between 7% and 8% in its paper division, which operates under the brand Navigator. That will have a very significant impact on the growth in profits, and so the valuation is still very attractive.
From Bestinver's second quarter 2018 shareholder letter.
