| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 15% |
Azvalor delivered strong first-half 2026 returns across its fund range, with Azvalor Internacional up 15% following a 19.5% gain in 2025. The firm manages EUR 4.8 billion with 39,000 co-investors and added EUR 460 million in net inflows during the period. The manager emphasizes that value stocks are extremely cheap by historical standards, citing GMO data showing value at historic discount levels relative to growth. This creates what they call a golden age for value investing, driven by excessive speculation in leveraged indices and momentum stocks. However, they warn that the S&P 500 is expensive, with its dividend yield below short-term government bills for the first time in twenty years. The firm actively rotates from appreciated holdings into deeply undervalued opportunities, adding more than ten new investment ideas to Azvalor Internacional during the period. Portfolio upside estimates range from 60% to 84% across funds. New positions include Yellow Cake and Borr Drilling, while Tenaris was sold. The expanded research team provides greater capacity to identify opportunities across sectors and geographies.
Azvalor believes value stocks are extremely cheap relative to growth stocks, creating a golden age for their investment style, while the broader market indices are expensive and driven by dangerous speculation in leveraged products.
The manager expresses strong conviction that value investing remains in a golden age due to extreme valuation disparities. They anticipate continued opportunities to rotate from appreciated holdings into undervalued names, maintaining high upside potential across portfolios. The firm is better prepared than ever with a deep bench of investment ideas and an expanded research team capable of analyzing larger numbers of companies with greater rigor across diverse sectors and geographies. They expect the market will eventually correct valuation excesses and recognize the value of sound businesses trading at low prices.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 3 2026 | 2026 Q2 | BORR, NE, YCA.L | Concentration, global, risk management, Rotation, Speculation, undervalued, value | - | Azvalor Internacional returned 15% in first-half 2026, continuing strong momentum from 2025. The manager sees a golden age for value investing with extreme valuation gaps favoring undervalued stocks over speculative growth names. They actively rotate winners into new deeply discounted ideas, adding ten positions during the period including Yellow Cake and Borr Drilling. Portfolio upside estimated at 82% despite strong cumulative gains. |
| 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. |
| Jul 27 2022 | 2022 Q2 | ARCH, BAYRY, CA, CEIX, CHK, CIVI, CNQ, DOCO, EBR, GFI, IAG, KGC, MOS, PFC.L, SUZ, VALE | concentrated, energy, international, liquidity, Mining, value | - | Azvalor delivered +28% returns during the worst market start in 50 years through disciplined value investing. The fund holds 24.7% cash after selling at target prices and is actively redeploying at attractive levels. With estimated portfolio value at €390 versus €187 current price, management sees over 100% upside potential from their concentrated value approach. |
| Feb 1 2022 | 2021 Q4 | CCJ, CF, GALP.LS, MOS, OCI.AS, PSG.MC, SQM, TRE.MC, YCA.L | Concentration, energy, Europe, Fertilizers, small caps, uranium, value | - | Azvalor maintains concentrated value strategy with 120%+ upside potential across funds. Manager rotated out of uranium and fertilizer winners into new opportunities at attractive prices. Energy sector particularly compelling, down 20% despite higher oil prices and record earnings. Portfolio concentration in quality businesses trading below estimated fair values drives continued outperformance versus indices. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
ValueThe manager emphasizes that value stocks are extremely cheap relative to growth stocks, presenting what they call a new golden age for value investing. They cite GMO data showing value at historic discount levels and attribute this to speculation in growth stocks and leveraged indices. The firm actively rotates from appreciated holdings into deeply undervalued opportunities. |
Value Valuation Undervalued Discount |
Risk AppetiteThe letter warns extensively about excessive speculation in markets, particularly in leveraged indices and meme stocks. The manager notes alarming levels of investment in 3x and 4x leveraged indices and recommends staying clear of such investments. They contrast Wall Street's profit-driven trading encouragement with their probability-based investment approach. |
Speculation Leverage Risk Volatility | |
DividendsThe manager highlights that for the first time in twenty years, the S&P 500 dividend yield is lower than short-term government bills. This is presented as evidence that the broad market is expensive despite strong price appreciation, as earnings have risen only 30% while the index has doubled since October 2020. |
Dividends Yield Income | |
UraniumYellow Cake was explicitly mentioned as one of the main positions added during the period in the Azvalor International SICAV Luxembourg portfolio. This represents a new investment idea with meaningful weighting in the portfolio. |
Uranium Nuclear Yellow Cake | |
DrillingBorr Drilling was added as a main position during the first half of 2026 in the Azvalor International SICAV Luxembourg portfolio. Noble was mentioned as the top performer during the period, indicating positive exposure to offshore drilling. |
Drilling Offshore Energy Services | |
| 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 | |
| 2022 Q2 |
ValueAzvalor emphasizes that buying cheap is all that matters and forms the backbone of their investment philosophy. They highlight their value approach has delivered exceptional performance during market downturns, with their portfolio trading at significant discounts to intrinsic value estimates. |
Value Cheap Conservative Discount |
LiquidityThe fund ended the period with 24.7% cash after selling positions that reached target values. Management views high liquidity periods as short-lived and has already begun redeploying capital at attractive prices in early July. |
Cash Liquidity Deployment Rotation | |
OilThe portfolio includes significant exposure to energy companies including Canadian Natural Resources, Consol Energy, Arch Resources, and Drilling Co Of 1972. The manager has been actively trading around these positions, selling on strength and buying back on weakness. |
Energy Oil Natural Gas Coal | |
GoldThe fund completely exited positions in gold miners Kinross Gold and Iamgold during the quarter, while increasing exposure to Gold Fields. This suggests a selective approach to gold mining exposure. |
Gold Miners Precious Metals | |
| 2021 Q4 |
ValueManager emphasizes buying solid companies at attractive valuations while selling businesses approaching fair value. Portfolio companies trade at significant discounts with the energy sector down 20% despite higher oil prices and record earnings. |
Value Undervalued Discount Fair Value Attractive |
OilEnergy sector is down 20% compared to two years ago despite crude oil being up 25% and companies earning more than in the last seven years. Sector accounts for 6% of S&P 500 earnings but only 3.5% index weight. |
Energy Oil Crude Earnings Sector | |
UraniumManager sold remaining uranium positions including Cameco, Yellow Cake, and SPUT following strong accumulated gains as prices approached target levels. |
Uranium Nuclear Commodity Gains | |
FertilizersExited fertilizer positions including Mosaic, OCI, SQM, and CF Industries after strong performance and reaching target prices, rotating capital into new opportunities. |
Fertilizers Agriculture Commodity Rotation |
| 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 |
|---|---|
| YCA.L | The main positions added during the period were Yellow Cake and Borr Drilling. |
| BORR | The main positions added during the period were Yellow Cake and Borr Drilling. |
| NE | In terms of performance contribution, Noble was the top performer during the first half of the year. |
| 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 | |||
