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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.

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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%.

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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.

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Wendel

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.

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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.

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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.

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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.

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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.

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Disclosure: No positions.

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This article first appeared on GuruFocus.