| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
| 2025 | 2024 |
|---|---|
| 31.0% | 3.4% |
Azvalor delivered strong returns across all funds in 2025, with the Iberia fund gaining 31% and the International fund rising 19.5%. The firm's concentrated value approach focuses on finding quality businesses with trustworthy management teams trading at attractive prices due to short-term market concerns. Their portfolios trade at approximately 50% discounts to broader markets while maintaining significant upside potential ranging from 54% to 71% across funds. The firm successfully exited gold and silver mining positions after building them when ignored by markets, crystallizing substantial gains. Portfolio rotation remains active, with proceeds from strong performers reinvested in new opportunities. Assets under management grew 22% to EUR 3.556 billion with over 30,000 investors. The team expanded to 14 professionals across Madrid and London offices, enhancing analytical capabilities. Looking forward, Azvalor maintains prudent optimism while emphasizing the necessity of equities for preserving purchasing power amid likely inflationary policies in developed markets.
Azvalor employs a concentrated value strategy, investing in high-quality businesses with strong management teams trading at significant discounts to fair value, while maintaining disciplined portfolio rotation to capitalize on market inefficiencies.
The firm faces the future with prudence, enthusiasm and optimism, continuing to focus on finding good businesses at attractive prices with their larger, more experienced team analyzing companies with increased depth and rigor.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 4 2026 | 2025 Q4 | CNQ.TO, Gold, PSLV, TREC.MC, VIST | Concentration, Europe, global, gold, Mining, Quality, value | - | Azvalor delivered strong 2025 returns through concentrated value investing in quality businesses trading at 50% market discounts. Successfully exited gold mining positions at substantial gains while rotating into new opportunities. With EUR 3.6 billion in assets and expanded analytical capabilities, the firm maintains significant upside potential across portfolios while emphasizing equity necessity amid inflationary policy expectations. |
| Aug 12 2025 | 2025 Q2 | CEPU.BA, Gold, LOMA.BA, SLB, SRUUF, TGS.BA, TS | Coal, contrarian, emerging markets, energy, oil, small caps, undervalued, value | - | Azvalor maintains contrarian positioning in forgotten sectors like coal, oil, emerging markets, and small-caps while avoiding expensive growth stocks. The firm sees parallels to 2022 when they outperformed by 65% during market stress. With valuations at extreme levels and significant price disparities between growth and value, they expect their defensive strategy to generate superior returns. |
| Feb 20 2025 | 2024 Q4 | PSG.MC, TUB.MC | Buybacks, Concentration, dividends, Europe, Spain, value |
TUB.MC PSG.MC |
Azvalor's value investing approach delivered modest 2024 returns while building significant portfolio upside. The Spanish manager sees 80% upside in their Iberia fund despite 3.4% annual return, driven by concentrated holdings like Tubacex benefiting from sectoral tailwinds. They remain concerned about high market valuations but confident in their contrarian positioning for future outperformance. |
| Sep 12 2024 | 2024 Q2 | PSLV | Concentration, Europe, long-term, Outperformance, Quality, Spain, value | - | Azvalor's concentrated value approach delivered positive H1 returns while maintaining significant upside potential of 86-93% across portfolios. Trading at attractive FCF yields of 11.5-16% versus expensive broader markets, the firm expects 10-13% annual returns over five years. Market volatility viewed as opportunity for deployment given strong historical outperformance during downturns. |
| Feb 28 2024 | 2023 Q4 | CASH.MC, EDV.TO, ENO.MC, Gold, IMB.L, JDW.L, MCG.L, NE, NOV, TLW.L, TRE.MC, TS, TUB.MC, VALE, WHC.AX | contrarian, energy, Europe, Mining, Spain, value | - | Azvalor's value strategy delivered strong 2023 returns led by Spanish industrials and international mining positions. Trading at 55% of estimated value, portfolios target 10%+ long-term returns. Key risks include AI bubble dynamics, index concentration, and sovereign debt burdens. Maintains contrarian exposure to energy and mining sectors with 5-7 year investment horizon. |
| Jul 28 2023 | 2023 Q2 | ARCH, DEC.PA, ELE.MC, Gold, GRF.MC, NE, NOV, PSG.MC, PSK.TO, TLW.L, TRE.MC, TS.PA, TUB.MC | contrarian, Discipline, energy, Europe, gold, Spain, valuation, value | - | Azvalor's disciplined value approach delivered mixed H1 2023 results but maintains attractive portfolio valuations. While markets concentrated gains in 10 stocks, the firm sees opportunity in overlooked quality companies trading below intrinsic value. Strategic position rotations like Tenaris-JC Decaux demonstrate process effectiveness. Current price-to-value ratios suggest strong future returns continuing their 20-year 15% annual track record. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been the defining theme of market leadership in 2025, driving data center capex and benefiting companies like Bloom Energy and Sandisk. The theme experienced volatility in Q4 with concerns over durability, but reasserted dominance after NVIDIA's strong earnings. AI data centers require enormous power and storage, creating opportunities for infrastructure providers. |
Data Centers Infrastructure Power Storage Semiconductors |
ElectrificationThe portfolio maintains its largest absolute and relative exposure to the Electrification theme within Industrials. However, the manager has modestly reduced exposure to some larger holdings in this theme during the quarter, suggesting a more cautious approach while maintaining conviction. |
Power Grid Infrastructure Energy Transition | |
BiotechBiotech was a standout performer during the quarter, delivering its best quarter in five years. Performance was driven by an improving rate environment, easing regulation with more M&A activity, and excitement around AI's promise in driving efficiencies in drug discovery processes. |
Pharmaceuticals M&A Drug Discovery Regulation | |
SolarFirst Solar benefited from Trump Administration's 'One Big Beautiful Bill' which drove US demand for non-China solar products. The company differentiates itself with thin-film CdTe technology offering better performance in challenging conditions and being more efficient for large scale deployment. |
Renewable Energy Manufacturing Trade Policy | |
SpaceRocket Lab operates as an end-to-end space company in Launch Services and Space Systems segments. The stock was up nearly 50% in the quarter on strong earnings and growing backlog, though the manager's late initiation of position meant it was a relative performance detractor. |
Launch Services Satellites Defense | |
| 2025 Q2 |
ValueAzvalor focuses on contrarian value investing, buying forgotten and undervalued companies while avoiding expensive growth stocks. The firm emphasizes finding strong companies with unique market positions trading at attractive multiples due to short-term pessimism. |
Contrarian Undervalued Multiples Forgotten Discount |
CoalCoal remains shunned by Western politicians and investors despite accounting for 30% of global primary energy needs and continuing to grow at 1.2% annually. Coal mining companies trade at multiples as if they will disappear soon, creating opportunities. |
Energy Mining Shunned Multiples Growth | |
OilOil is perceived as being on the verge of extinction due to electric vehicles, leading to reduced Western investment and unprecedented low reserves. However, oil consumption has grown more than renewables in absolute terms over the last two years and remains essential for multiple industries beyond transportation. |
Energy Consumption Reserves Essential Underinvestment | |
Emerging marketsBrazilian market offers opportunities with currency down 75% since 2011 and valuations below Covid levels. The situation reminds of successful 2021 Argentine investments that generated average returns of 150% in companies like Central Puerto, Loma Negra and Transportadora de Gas del Sur. |
Brazil Currency Valuations Argentina Opportunities | |
Small CapsUK small companies have experienced several years of declines with the FTSE SmallCap Index remaining below levels from five years ago. Companies are trading at multiples clearly below historical levels and at record discounts relative to indices, especially compared to American markets. |
UK Declines Multiples Discount Historical | |
| 2024 Q4 |
ValueAzvalor positions itself as a value investing manager, focusing on good businesses bought at attractive prices during periods of temporary market pessimism. The firm emphasizes investing against major market fashions and narratives, with portfolios that differ significantly from indices. |
Value investing Contrarian Undervalued Attractive prices Market pessimism |
SpainThe Azvalor Iberia fund focuses on Spanish companies, with concentrated holdings in businesses the managers have followed for decades. Examples include Tubacex and Prosegur Cash, both facing headwinds that are now turning into tailwinds. |
Spanish companies Iberia Local market Domestic focus | |
| 2024 Q2 |
ValueAzvalor emphasizes investing in companies trading at very attractive prices for temporary reasons. The portfolios trade at FCF yields of 11.5-16% versus 4-6% for Western markets, with price-to-earnings ratios around 8x compared to 22x for the S&P 500. The firm believes these valuation discrepancies represent clear investment opportunities. |
Valuation FCF Yield Price-to-Earnings Discount Undervalued |
QualityThe funds focus on very good businesses with strong fundamentals, reflected by weighted average ROCE of 23-32%. Most companies have very strong balance sheets and are managed with shareholder value generation in mind. Many are owner-managed businesses or world/local market leaders in their respective fields. |
ROCE Balance Sheet Owner-Managed Market Leaders Fundamentals | |
SilverSprott Physical Silver Trust was the main position added during the period in the Luxembourg SICAV, indicating a specific allocation to precious metals exposure through physical silver holdings. |
Precious Metals Physical Silver Commodity Exposure | |
| 2023 Q4 |
ValueAzvalor focuses on investing in companies trading at significant discounts to intrinsic value. The funds currently trade at around 55% of their estimated value, suggesting long-term expected returns above 10%. The firm emphasizes analyzing each company's fundamentals while avoiding market timing predictions. |
Valuation Discount Intrinsic |
GoldGold mining companies feature prominently across multiple Azvalor funds. Barrick Gold is a main position in both Azvalor Internacional and Azvalor Blue Chips, while Endeavour Mining is also held in the international portfolio. |
Mining Precious Metals Commodities | |
EnergyEnergy sector exposure includes oil services companies like Nov and Técnicas Reunidas, coal mining through Whitehaven Coal, and oil exploration via Tullow Oil. These positions reflect the firm's contrarian approach to out-of-favor sectors. |
Oil Coal Services | |
| 2023 Q2 |
ValueAzvalor emphasizes disciplined value investing, buying companies trading below intrinsic value and selling when they reach fair value. The fund's price-to-value ratio indicates attractive returns ahead, contrasting with expensive broader markets where only 10 companies drove 82% of S&P 500 returns. |
Valuation Intrinsic Value Discipline Contrarian Price-to-Value |
OilThe portfolio includes significant exposure to energy companies including National Oilwell, Arch Resources, Noble, and Tullow Oil. Energy represents a core sector allocation across multiple Azvalor funds, reflecting the team's conviction in energy value opportunities. |
Energy Oil Services Coal Exploration Production | |
GoldBarrick Gold appears as a main position across multiple Azvalor funds including Internacional and Blue Chips. The allocation to gold miners reflects portfolio diversification and potential inflation hedging within the value framework. |
Gold Miners Precious Metals Inflation Hedge Commodities Mining |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 20, 2025 | Fund Letters | Azvalor Iberia | TUB.MC | Tubacex | Materials | Steel | Bull | Madrid Stock Exchange | acquisition strategy, energy infrastructure, manufacturing, Spain, Steel, turnaround, Value-added products | Login |
| Feb 20, 2025 | Fund Letters | Azvalor Iberia | PSG.MC | Prosegur Cash | Industrials | Security & Alarm Services | Bull | Madrid Stock Exchange | Argentina, Brazil, Cash management, Cyclical Recovery, Emerging markets, Latin America, security services | Login |
| TICKER | COMMENTARY |
|---|---|
| CNQ.TO | Energy (MEG takeover, CNQ), Precious metals (a basket of producers, primarily silver) and Financials (Goldman Sachs/Fairfax Financial) all provided solid contributions within the quarter. With the exception of MEG, all remain large holdings, and in some cases, we have further added to our positions. |
| PSLV | Physical silver shortages catapulted prices higher in Q4. The feverish price action in Q4 sent silver and gold to record levels, which, while possibly justified by years of asset inflation, made us feel they may have moved too far, too fast. As a result, we completely sold our position in the Sprott Silver Trust near the end of the quarter. |
| TREC.MC | one of our core investments in recent years, Técnicas Reunidas, delivered an exceptional performance, rising +160% over the year |
| VIST | The main positions added throughout the period are Vista Energy |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
