azValor Iberian portfolio delivers negative performance

Madrid-based independent asset management boutique azValor delivered a negative absolute performance of -0.9% for the Iberian portfolio in the first half of the year, slightly below the -0.6% obtained by the index.

The fund performed worse than it was expected. Investors should expect a significantly higher return than the indices over the long term.

In two years, Spanish asset manager has generated almost 13 percentage points per year more than the market, and far from bragging about it.

“I must forewarn the investors that the probability of repeating these results in the next 10 years is close to zero. We will be very pleased if we obtain between 5 and 7 percentage points per year versus the indices in the future,” commented Álvaro Guzmán de Lazaro, chief investment officer.

With regard to the composition of the portfolio, there have been no significant movements in the quarter. The most relevant has been the divestment of Telefónica, after obtaining a return of only 5% (IRR). The company still like some assets (for example the Brazilian ones), but azValor is less certain about its exposures in other markets.

“We also sold Almirall entirely (IRR +34%) and Catalana Occidente (IRR 9.8%), as well as a part of our position in Técnicas Reunidas, after their share price increases. With the proceeds of these sales, we were able to buy more shares of Mota Engil, Jerónimo Martins, NOS, OHL and Tubacex, taking advantage of their sharp falls,” added Guzmán de Lazaro.

Ridhima Sharma
Ridhima Sharma speaks German and is DACH Correspondent for InvestmentEurope. She has more than 8 years of experience in the media industry. Before joining us, she was working in India and covering automotive and lifestyle sectors. Over the years many of her stories have been published in various magazines across India.

Read more from Ridhima Sharma

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