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Bestinfond Buys 1 Stock in 3rd Quarter

Bestinfond (Trades, Portfolio), part of Spanish investment firm Bestinver, disclosed its third-quarter portfolio last week, listing one new position.

Managed by Beltran de la Lastra, the fund seeks to achieve long-term capital appreciation by applying key value investing principles that were introduced and used by legends like Benjamin Graham, Peter Lynch and Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) CEO Warren Buffett (Trades, Portfolio).


Based on these criteria, the fund invested in TeamViewer AG (XTER:TMV) during the quarter.

TeamViewer

Bestinfond picked up 422,884 shares of the German software company, dedicating 0.67% of the equity portfolio to the holding. The stock, which went public on Sept. 25 in Europe's largest initial public offering of 2019, traded for an average price of 24.38 euros ($26.90) per share during the quarter.

The company, which develops cloud-based technologies to enable online remote support, has a market cap of 4.9 billion euros; its shares closed at 25.1 euros on Friday with a price-earnings ratio of 111.37.

According to the price chart below, the stock has declined nearly 5% since its debut.

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On Nov. 11, the company reported its third-quarter results. It recorded a 63% increase in billings to 83 million euros, while cash earnings before interest, taxes, depreciation and amortization grew 95% from the prior-year quarter to 46 million euros. Similarly, revenue climbed 39% to 1.2 million euros.

"Our first results as a listed company underscore TeamViewer's strong financial profile combining high growth with high profitability," CEO Oliver Steil said. "The traction of our strategic growth initiatives is reflected in our billings growth, and our subscription based Software as a Service business model results in very good earnings growth."

TeamViewer also said it now has more than 430,000 paying customers.

The stock popped approximately 5% on the news.

GuruFocus rated TeamViewer's financial strength 4 out of 10 on the back of insufficient interest coverage and a low cash-to-debt ratio of 0.08.

The company's profitability fared even worse, scoring a 1 out of 10 rating despite having strong margins and returns that outperform a majority of competitors.

The fund holds 0.21% of TeamViewer's outstanding shares.

Additional trades

During the quarter, Bestinfond also added to many other positions, including Booking Holdings Inc. (NASDAQ:BKNG), Schlumberger Ltd. (NYSE:SLB), SAP SE (XTER:SAP), ABB Ltd. (XSWX:ABBN) and ITV PLC (LSE:ITV).

The fund's $1.57 billion equity portfolio, which is composed of 91 stocks, is largely invested in the industrials and financial services sectors.

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In 2018, the fund posted a return of -13.4%.

Disclosure: No positions.

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This article first appeared on GuruFocus.