| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 0% |
| 2025 |
|---|
| 19.5% |
Azvalor delivered strong 2025 performance with their International fund returning +19.5% and Iberian fund +31%, driven by their concentrated value approach of investing in quality businesses at significant discounts to broader markets. The firm successfully exited gold and silver mining positions after substantial gains, demonstrating disciplined portfolio rotation as they avoid headline-driven investments. Their portfolios trade at approximately 50% discounts to market indices with estimated upside potential of 54-71% across funds. The strategy focuses on finding well-managed companies offered at attractive prices due to short-term headwinds, with top holdings representing 53-57% of assets in high-conviction positions. Azvalor expanded to EUR 3.556 billion in assets under management with over 30,000 investors, supported by a larger 14-person team analyzing opportunities with increased depth. They maintain a prudent yet optimistic outlook, positioning portfolios defensively against record market valuations while identifying new opportunities in differentiated areas with minimal overlap to concentrated US indices.
Azvalor employs a concentrated value strategy, investing in high-quality businesses with strong management teams trading at significant discounts to fair value, maintaining disciplined portfolio rotation to capitalize on market inefficiencies while avoiding headline-driven investments.
Azvalor 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 a greater number of companies with increased depth and rigor.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 4 2026 | 2025 Q4 | CNQ, Gold, SII, VIST | Concentration, discount, Europe, global, Mining, Quality, Upside, value | - | Azvalor delivered strong 2025 returns through concentrated value investing, successfully rotating from gold miners into quality businesses trading at 50% market discounts. With 54-71% estimated upside across funds and minimal overlap to expensive US indices, they maintain disciplined capital allocation while expanding their experienced team to identify new opportunities in overlooked market segments. |
| Aug 12 2025 | 2025 Q2 | CEPU.BA, Gold, LOMA.BA, SLB, SRUUF, TGS.BA, TS | Coal, commodities, contrarian, emerging markets, energy, oil, small caps, value | - | Azvalor positions contrarian to expensive growth markets, investing in forgotten sectors like coal, oil, emerging markets, and UK small caps. With stock markets at 117% of GDP and tech giants overvalued, they find opportunities in shunned energy companies and undervalued international markets, estimating significant portfolio upside potential of 52-108% across their funds. |
| Feb 20 2025 | 2024 Q4 | PSG.MC, TUB.MC | Concentration, contrarian, Europe, long-term, Spain, value |
TUB.MC PSG.MC |
Azvalor delivered mixed 2024 results but sees significant portfolio upside ahead. The Spanish value manager maintains concentrated positions in quality companies like Tubacex and Prosegur Cash, bought during cyclical downturns. With +105% estimated upside in International and concerns about high market valuations, the firm expects their contrarian approach to generate strong future returns. |
| Sep 12 2024 | 2024 Q2 | EDV, NGD, PSLV, TRE.MC | Concentration, Europe, global, Long Term, Quality, value | - | Azvalor's concentrated value approach delivered solid H1 2024 returns while maintaining significant upside potential of ~90% across portfolios. Trading at 8x P/E versus market's 22x, the firm expects 10-13% annual returns over five years. Recent silver allocation and quality focus on owner-managed businesses with strong ROCEs positions them well for volatility-driven opportunities ahead. |
| Feb 28 2024 | 2023 Q4 | EDV.TO, Gold, IMB.L, MCG.L, NOV, VALE | international, Mining, portfolios, returns, valuation, value | - | Azvalor delivered double-digit returns across funds in 2023 through value investing approach. Portfolios currently trade at 55% of intrinsic value, suggesting 10%+ long-term returns. Key risks include AI euphoria, index concentration, and sovereign debt burdens. Firm maintains patient, long-term perspective while avoiding market timing, focusing on individual company analysis over macro predictions. |
| Jul 28 2023 | 2023 Q2 | ARCH, CMMC, DEC.PA, Gold, NE, NOV, PDCE, PSK.TO, TEN.MI, TLW.L | contrarian, energy, gold, Spain, valuation, value | - | Azvalor's disciplined value approach delivered mixed H1 2023 results but positions portfolios attractively versus expensive markets. The firm's rigorous valuation process and contrarian positioning, demonstrated through strategic rotations like Tenaris-JC Decaux, creates opportunities in unpopular but fundamentally sound companies. Current price-to-value ratios suggest strong future returns similar to their 15% historical average. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI emergence has created market hysteria and broad software sell-offs despite limited real-world adoption. Manager believes incumbent software firms with domain expertise and proprietary data are better positioned than AI-native startups to capture long-term benefits from AI integration. |
Artificial Intelligence Software Automation Technology |
SoftwareSoftware sector treated as monolith awaiting AI disruption, but manager sees meaningful distinctions between companies. Dominant vertical software platforms that successfully integrate AI can thrive and fend off new entrants, particularly those with mission-critical systems and proprietary data. |
Enterprise Software SaaS Technology Vertical Software | |
ValueManager describes being caught between cutting-edge technologies and traditional value industries during a broadening market. Software holdings are ironically cheaper than traditional value industrial exposure, creating opportunities for value-oriented investors. |
Value Investing Valuation Undervalued | |
HotelsChoice Hotels represents asset-light, high-margin hotel franchisor trading at distressed multiples due to cyclical headwinds. Company shifting toward higher-revenue segments like Extended Stay and international markets, with potential for significant cash unlock and share buybacks. |
Hospitality Franchising Real Estate | |
| 2025 Q2 |
ValueAzvalor positions as contrarian value investors, focusing on forgotten and mistakenly overlooked companies trading at attractive valuations. They emphasize small value companies trading at 13.9x earnings versus large growth at 32x earnings, seeking opportunities in shunned sectors. |
Contrarian Undervalued Forgotten Discount Multiples |
CoalCoal remains shunned by politicians, media and investors in the West, with mining companies trading at multiples as if disappearing soon. However, coal accounts for 30% of world's primary energy needs and continues growing at 1.2% over last 10 years, with Asia consumption growing at 2%. |
Energy Shunned Asia Primary Growth | |
OilOil perceived as near extinction due to electric cars, leading Western companies to reduce investment and bringing reserves to unprecedented lows. Oil consumption has grown more than renewables in absolute terms over last two years, accounts for 34% of world's primary energy needs. |
Energy Consumption Reserves Chemical Transportation | |
Emerging marketsBrazilian stock market offers opportunities with currency fallen 75% since 2011 and valuations below Covid levels. Azvalor references successful 2021 Argentine investments with 150% average returns in Central Puerto, Loma Negra and Transportadora de Gas del Sur. |
Brazil Argentina Currency Valuations Opportunities | |
Small CapsUK small companies experiencing several years of declines with FTSE SmallCap Index below levels from five years ago. Companies trading at multiples clearly below historical levels and at record discount relative to indices, especially versus American index. |
UK Discount Historical Multiples Underperformance | |
| 2024 Q4 |
ValueAzvalor focuses on investing against major market fashions and narratives, building portfolios of good businesses bought at attractive prices during periods of temporary market pessimism. The firm emphasizes finding companies trading at valuations unbefitting their quality and competitive position for cyclical reasons. |
Value investing Contrarian Undervalued Cyclical Quality |
BuybacksThe firm highlights shareholder-focused companies with the right mix of incentives, capital allocation decisions and shareholder remuneration including investments, dividends, and share buybacks as key criteria for investment selection. |
Share buybacks Capital allocation Shareholder returns Dividends | |
| 2024 Q2 |
ValueAzvalor emphasizes investing in companies trading at attractive prices for cyclical or one-time reasons. The portfolio trades at an average FCF yield of 12%, much more attractive than the 4%-6% at which Western markets are trading. Their portfolios have a price/earnings ratio of around 8 times compared to the S&P 500's 22 times. |
Valuation FCF Yield Price Earnings Discount Cheap |
QualityThe fund focuses on world or local market leaders and very good businesses as reflected by a weighted average ROCE of 25%. Most companies have very strong balance sheets and are managed keeping in mind the generation of value for shareholders. They seek companies with strong fundamentals and owner-managed businesses. |
ROCE Balance Sheet Market Leaders Owner Managed Fundamentals | |
SilverThe main position added throughout the period is Sprott Physical Silver Trust, indicating a strategic allocation to precious metals as part of their investment approach. |
Precious Metals Physical Silver Commodity Exposure | |
| 2023 Q4 |
ValueAzvalor focuses on buying companies trading below intrinsic value, with current portfolios trading at 55% of estimated value suggesting long-term expected returns above 10%. The firm emphasizes analyzing individual companies while avoiding market timing predictions. |
Valuation Intrinsic Value Discount Price/Earnings Free Cash Flow |
GoldBarrick Gold represents one of the main positions across multiple Azvalor funds, indicating significant exposure to gold mining operations as part of their value-oriented investment strategy. |
Gold Miners Barrick Precious Metals Mining Commodities | |
| 2023 Q2 |
ValueAzvalor emphasizes disciplined value investing through rigorous company valuation and contrarian positioning. The firm's process involves buying undervalued companies when unpopular and selling when they reach fair value, as demonstrated by their Tenaris-JC Decaux rotation. Current portfolios trade at attractive valuations with significant upside potential. |
Valuation Contrarian Discipline Undervalued Intrinsic Value |
EnergyEnergy sector features prominently across portfolios with holdings in oil services, exploration, and production companies. Key positions include National Oilwell, Arch Resources, Noble, and Tullow Oil. The sector represents a core focus area for the firm's value-oriented investment approach. |
Oil Services Exploration Production Energy Equipment | |
GoldGold mining exposure through Barrick Gold appears as a major position across multiple Azvalor funds. The holding represents part of the firm's diversified approach to value investing across different sectors and geographies. |
Gold Mining Precious Metals Commodities |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Feb 20, 2025 | Fund Letters | Azvalor Internacional | TUB.MC | Tubacex | Materials | Steel | Bull | Madrid Stock Exchange | Industrial, Management transformation, manufacturing, Seamless tubes, Spain, Steel, turnaround, Value-added products | Login |
| Feb 20, 2025 | Fund Letters | Azvalor Internacional | PSG.MC | Prosegur Cash | Industrials | Security & Alarm Services | Bull | Madrid Stock Exchange | Argentina, Brazil, Cash management, currency exposure, Cyclical Recovery, Emerging markets, Latin America, security services | Login |
| TICKER | COMMENTARY |
|---|---|
| CNQ | Canadian Natural Resources: Continued execution led to earnings beat. Increased Canadian egress enabled 20% Y/Y production growth. |
| SII | Sprott, and Agnico Eagle (the last two are precious metals positions that were small position sizes but delivered outsized returns given the performance of Gold and Silver in the quarter) |
| 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 |
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| No industry data available | |||
