Exploring Azvalor Internacional FI (Trades, Portfolio)'s Investment Strategy and Recent Portfolio Adjustments

• Warning! GuruFocus has detected 4 Warning Signs with NE.

Azvalor Internacional FI (Trades, Portfolio) recently submitted its report for the fourth quarter of 2024, shedding light on its strategic investment decisions during this period. This fund is dedicated to investing in undervalued equity assets across global markets, catering to investors with a long-term investment horizon. Adhering to the Value Investment philosophy, Azvalor Internacional FI (Trades, Portfolio) focuses on acquiring companies at prices below their intrinsic value. The portfolio predominantly consists of European companies listed on secondary markets, selected individually without bias towards company size, sector, or country.

Summary of New Buy

Azvalor Internacional FI (Trades, Portfolio) added a total of 16 stocks, among them:

• The most significant addition was Noble Corp PLC (NYSE:NE), with 4,511,080 shares, accounting for 10.5% of the portfolio and a total value of $137.169 million.
• The second largest addition to the portfolio was Ryanair Holdings PLC (DUB:RYA), consisting of 1,999,475 shares, representing approximately 2.92% of the portfolio, with a total value of 38.12 million.
• The third largest addition was Bayer AG (XTER:BAYN), with 835,974 shares, accounting for 1.24% of the portfolio and a total value of 16.146 million.

Key Position Increases

Azvalor Internacional FI (Trades, Portfolio) also increased stakes in a total of 15 stocks, among them:

• The most notable increase was Schlumberger Ltd (NYSE:SLB), with an additional 2,231,871 shares, bringing the total to 2,401,792 shares. This adjustment represents a significant 1,313.48% increase in share count, a 6.35% impact on the current portfolio, with a total value of $89.173 million.
• The second largest increase was Whitehaven Coal Ltd (ASX:WHC), with an additional 6,885,600 shares, bringing the total to 13,602,166. This adjustment represents a significant 102.52% increase in share count, with a total value of A$50.72 million.

Summary of Sold Out

Azvalor Internacional FI (Trades, Portfolio) completely exited 9 holdings in the fourth quarter of 2024, as detailed below:

• Arch Resources Inc (ARCH): Azvalor Internacional FI (Trades, Portfolio) sold all 475,257 shares, resulting in a -5.62% impact on the portfolio.
• Savills PLC (LSE:SVS): Azvalor Internacional FI (Trades, Portfolio) liquidated all 828,861 shares, causing a -0.91% impact on the portfolio.

Key Position Reduces

Azvalor Internacional FI (Trades, Portfolio) also reduced positions in 21 stocks. The most significant changes include:

• Reduced Canadian Natural Resources Ltd (NYSE:CNQ) by 982,803 shares, resulting in a -65.55% decrease in shares and a -2.71% impact on the portfolio. The stock traded at an average price of $33.67 during the quarter and has returned -8.52% over the past 3 months and 0.71% year-to-date.
• Reduced British American Tobacco PLC (LSE:BATS) by 1,075,230 shares, resulting in a -42.42% reduction in shares and a -2.58% impact on the portfolio. The stock traded at an average price of 28.21 during the quarter and has returned 21.73% over the past 3 months and 11.81% year-to-date.

Portfolio Overview

At the fourth quarter of 2024, Azvalor Internacional FI (Trades, Portfolio)'s portfolio included 53 stocks. The top holdings included 10.5% in Noble Corp PLC (NYSE:NE), 9.07% in Barrick Gold Corp (NYSE:GOLD), 6.83% in Schlumberger Ltd (NYSE:SLB), 6.42% in PrairieSky Royalty Ltd (TSX:PSK), and 5.49% in NOV Inc (NYSE:NOV).

The holdings are mainly concentrated in 10 of the 11 industries: Energy, Basic Materials, Consumer Defensive, Industrials, Financial Services, Healthcare, Real Estate, Utilities, Consumer Cyclical, and Communication Services.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.