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| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
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Azvalor delivered strong first-half 2026 returns across its fund range, with Azvalor Iberia up 6% year-to-date following a 31% gain in 2025. The firm manages EUR 4.8 billion across 39,000 co-investors and added EUR 460 million in net inflows during the period. The manager emphasizes that value stocks are extremely cheap relative to growth, creating a golden age for their investment style, while warning that the broad S&P 500 is expensive with dividend yields below government bills for the first time in twenty years. Speculation in leveraged products and momentum trades creates opportunities for disciplined investors. The firm actively rotates capital from appreciated holdings into deeply undervalued companies, adding four new ideas to Azvalor Iberia and more than ten to Azvalor Internacional during the half. Key contributors included Meliá and Repsol, while new positions include Yellow Cake and Borr Drilling. The manager estimates current portfolio upside of 60% for Azvalor Iberia, 82% for Azvalor Internacional, and 84% for Azvalor Blue Chips, maintaining high conviction in their value-focused approach.
Azvalor believes we are in a new golden age for value investing, with value stocks trading at extreme discounts to growth stocks due to market speculation and concentration in a handful of names. The firm rotates capital from appreciated holdings into deeply undervalued companies, maintaining high upside potential across portfolios despite strong recent gains. While the broad S&P 500 is expensive with dividend yields below government bills for the first time in twenty years, disciplined value investors can find attractive opportunities by avoiding speculation and focusing on sound businesses at unjustifiably low prices.
The manager expects the current golden age for value investing to continue, driven by extreme valuation disparities between value and growth stocks. They anticipate that market corrections will eventually recognize the value of sound businesses trading at unjustifiably low prices, as has occurred in previous cycles. The firm is positioned with prudence, enthusiasm, and humility, leveraging a larger and more experienced team to analyze a broader universe of opportunities in greater depth.
As of Aug 10, 2026
Azvalor Asset Management SGIIC SA is a Spanish independent boutique asset management firm founded in 2015 and headquartered at Paseo de la Castellana 110, 3rd Floor, 28046 Madrid, Spain. The company operates with a team of 11-50 employees and has offices in Madrid and London. Azvalor was founded by four professionals, each with nearly 20 years of experience, with the mission to provide an independent investment model based on value investing. The company celebrated its 10th anniversary in 2025, having managed €2.894 billion in assets under management as of June 2025 with over 28,100 investors.
Lead Portfolio Manager
Álvaro Guzmán de Lázaro
Managing Partner
Moderate Conviction Bullish
Market Conviction
The manager demonstrates high conviction through concentrated portfolios with named positions and explicit upside estimates of 60-84% across funds. They provide specific position sizing language, naming Meliá and Repsol as main contributors, Yellow Cake and Borr Drilling as new additions, and Tenaris as a sale. The letter describes active rotation with four new ideas added to one fund and more than ten to another, indicating decisive capital allocation. However, the absence of detailed individual position sizing and the diversified nature of some funds (Azvalor Internacional holds many positions) prevents a score above 0.80. The conviction is clear but not at the extreme concentration level of single-thesis funds.
Growth Outlook
The manager expresses significant caution regarding the broader market, specifically highlighting that the major US indices trade at record valuation multiples with unprecedented concentration. While they see substantial upside in their own deeply discounted portfolios, their outlook on the overall index-driven market is defensive, warranting a cautious score of 0.25.
Risk Appetite
The manager maintains a balanced risk appetite, actively trimming and fully exiting positions that have reached full value (such as gold and silver mining companies) and reinvesting into highly selected opportunities. Their willingness to temporarily hold cash rather than force capital into expensive markets demonstrates a controlled, defensive posture amid elevated broader market valuations.
Capital Deployment
The manager is engaged in active rotation rather than net deployment. They sold appreciated holdings and reinvested proceeds into new undervalued opportunities, adding four new ideas to Azvalor Iberia and more than ten to Azvalor Internacional. However, no cash level changes are disclosed, and the language describes rotation (selling to fund new purchases) rather than net new capital deployment. The fund received EUR 460 million in net inflows, but the letter does not indicate this was immediately deployed versus held as cash. Given the rotation activity without evidence of declining cash levels, this scores as modest positive activity.
Forward Guidance
Azvalor shows a net neutral to moderate forward guidance of 0.50, focusing on disciplined portfolio rotation and monitoring for new opportunities. The manager explicitly states a readiness to temporarily hold cash if suitable alternatives are unavailable at attractive prices, rather than aggressively deploying capital.
Language Signal
The letter contains mixed directional language. Bullish terms include golden age, attractive upside (60-84% across funds), deeply undervalued, and strong opportunity set. Bearish language includes alarming leverage levels, speculation warnings, expensive market, and cautions about index investing. The manager uses confident language about their own opportunities while warning about broader market risks. The net balance is mildly positive given the emphasis on attractive value opportunities, but tempered by systemic risk warnings.
Perceived Risk
The manager perceives market risk to be quite high, scoring 0.70. They point specifically to 'record valuation multiples' and 'unprecedented concentration' in major US indices, as well as 'highly likely inflationary policies in the developed world' as systemic risks that demand a highly active, non-benchmark-overlapping investment strategy.
Opportunity Density
The manager sees an abundant opportunity set, describing this as a new golden age for their investment style. They state they have the strongest squad of substitute ideas in their history and are better prepared than ever to continue renewing upside. They added four new ideas to one fund and more than ten meaningful positions to another during the half, indicating screens are full of opportunities. The manager explicitly states they maintain high upside across all portfolios despite strong recent gains, estimating 60-84% upside across funds. This reflects a rich, broad opportunity set within their value universe.
Time Horizon
The manager demonstrates a multi-year investment horizon with patience for value recognition. They reference having done their job well for more than a decade and describe an investment method focused on waiting for the market to recognize value over time. The letter mentions investors who buy their funds, forget about them, and find ten years later they have almost quadrupled their money. However, the active rotation strategy (selling appreciated holdings and buying new undervalued names) suggests a willingness to harvest gains within a 2-5 year timeframe rather than indefinite holding periods. The horizon is clearly multi-year but not permanent capital, scoring in the upper-moderate range.
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