Francisco Garcia Parames, Cobas AM, azValor

Every country except germany* has its own “Warren Buffett”. The Warren Buffett of Spain is Francisco García Paramés. He was the Star Investing Manager at Bestinver with a 16% annual return over 25 years. When he left Bestinver, their assets fell by almost a third. He had a 2 year break (two-year non-compete agreement) but it seems like he is back now.

“When you’re young you want to achieve a quick, high return and you think you can get it with cheap companies, so you avoid quality companies that are more expensive. Over time you realize these cheap companies are cheap because they are regular businesses and things can go wrong. You’ve fallen into a value trap.”

Forbes about Paramés (link)

There were rumours that he would join azValor but he opened his own investing boutique Coba AM.

Cobas Asset Managment

Cobas Asset Management, the boutique of the renowned Spanish fund manager Francisco García Paramés, has registered with Spain’s National Securities Market Commission (CNMV) its first four mutual funds.
The new range of funds, of which three will invest mainly in equities and one in fixed income, will be commercialised in Spain from 8 March. (link) A fifth fund launched by a bank will be integrated (link)

With a TER of 1,8 the fund is not cheap. But it’s definitely worth following what Francisco Garcia Parames is buying and selling.

 

Links:

Homepage Cobas A M (link)

Paramés hires two fund managers (link)

 

azValor

Álvaro Guzmán de Lázaro

Before founding Azvalor Asset Management Alvaro spent 12 years at Bestinver Asset Management where he served as portfolio manager together with Francisco García Paramés (CIO) and his current partner Fernando Bernad.

 

azValor Select.PNG

Their portfolio is very comedies focused at the moment, both Iberian and International. This is what they write in the January Letter:

In each of the above examples there is a lot of pessimism due to doubts about China’s future consumption. We share these doubts in some cases (steel) but we believe the analysis is far more complex

also interesting, their current view on BMW (a Company Francisco Garcia Parames also liked)

BMW (4.6%): We still believe it is the best managed company in the sector. Through the preference share, we paid 4x 2015 profits. If profits fell by 30% the multiple would only increase to 6x given its huge net cash pile. We value it 90% above the current price.

*sadly

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