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Charles de Vaulx Buys 3 Stocks in 4th Quarter

- By James Li

Charles de Vaulx (Trades, Portfolio), portfolio manager of the IVA Worldwide Fund, disclosed this week his three new buys for fourth-quarter 2018 were Grupo Mexico SAB de CV (GMEXICOB.MX), Wendel SE (MF.PA) and Kiwoom Securities Co. Ltd. (039490.KS).

Managing an equity portfolio of 74 stocks, de Vaulx employs a value-oriented investing approach and seeks companies with one or more of the following characteristics: financial strength, temporarily depressed earnings or entrenched franchises. According to current portfolio statistics, de Vaulx's top-three sectors in terms of portfolio weight are consumer cyclical, financial services and industrials.


Grupo Mexico

De Vaulx invested in 19,083,122 shares of Grupo Mexico for an average price of 44.91 pesos ($2.37) per share. With this transaction, the fund manager increased his equity portfolio 1.01%.


Grupo Mexico engages in mining and production of copper and other minerals. GuruFocus ranks the company's profitability 8 out of 10: even though operating margins have contracted approximately 4.9% per year over the past five years, Grupo Mexico's profit margins are still outperforming over 78% of global competitors. Additionally, the company's Piotroski F-score ranks a strong 7 out of 9 on several positive indicators, which include higher current ratios, gross margins and asset turnover year over year.



De Vaulx invested in 124,052 shares of Wendel for an average price of 109.9 euros ($124.82) per share, giving the position 0.38% equity portfolio space.


The French asset management company invests primarily in unlisted and listed companies from Africa, North America and Europe. GuruFocus ranks the company's financial strength 4 out of 10: although the Piotroski F-score ranks 8 out of 9, Wendel's Altman Z-score of 1.19 suggests possible financial distress. Additionally, the company's debt-to-equity ratio of 3.45 underperforms 95% of global competitors.


Despite poor financial strength, Wendel's profitability ranks 8 out of 10 on several strong indicators, which include returns on equity that are outperforming 64% of global competitors and a three-year earnings per share growth rate that outperforms 91% of global asset management companies.


Kiwoom Securities

De Vaulx invested in 101,709 shares of Kiwoom Securities for an average price of 79,545.90 won ($70.44) per share, giving the position 0.18% equity portfolio space.


The South Korean financial services company offers services like equity brokerage, financial research, asset management, investment banking, project financing and financial consulting. GuruFocus ranks the company's financial strength 4 out of 10: although the cash-to-debt ratio of 1.88 underperforms just 55% of global competitors, Kiwoom's debt-to-equity ratio of 1.24 underperforms 64% of global competitors.


Disclosure: No positions.

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This article first appeared on GuruFocus.