hit tracker
Wednesday, May 31, 2023
HomeLatest NewsThe five bets of the manager who won almost 100% in the...

The five bets of the manager who won almost 100% in the ‘turbulent’ 2022

Date: May 31, 2023 Time: 16:04:53

The manager Creand Asset Management shows that it handles troubled waters well. The former Banco Alcalá, acquired by Crèdit Andorrà, manages one of its funds to close 2022 as the most profitable in all of Spain for the third consecutive year. This time it is Alcalá Multigestión Garp, which has obtained a return of more than 95% in the last twelve months.

Its commitment to energy is one of the factors that explain this figure and that has allowed it to rise from its ashes after the pandemic, which led it to drop more than 54.9% and 0.38% in 2020 and 2021, respectively, what a coincidence with his first two years of life. In this way, he confirms that achieving a positive return in the financial markets last year was an arduous task, but not an impossible mission.

“The key to success has been a relatively concentrated portfolio in sectors that have been hit hard, such as energy, raw materials and certain industrial sectors,” explains the investment director of Creand AM and fund manager, Luis Buceta, to La Información. He has also contributed a strategy based on derivatives to hedge “the risk of overvaluation or undervaluation in indices such as the Nasdaq, the German Dax or the Ibex 35”, he adds.

The three areas mentioned together with gold concentrate half of their investment. Of this, only gas and oil represent 17% of the total, being one of the beneficiaries of the price escalation, especially the former, which came to exceed the record threshold of 300 euros last summer. Transport (15.5%) or mining (7.2%) also represent a relevant part of its portfolio, which is completed with a 5% exposure to food.

The key to success has been a relatively concentrated portfolio in hard-hit sectors

Within this sector map, when choosing stocks, they are governed by the “growth at a reasonable price” philosophy, focused on the search for companies with a “growth profile that is not fully recognized by the market in its valuation” . The secret of following this premise, according to Buceta, is that it gives the possibility of betting on certain companies at “a reasonable price”, but with a margin between the “intrinsic value” of the company and its price.

In this sense, among its ‘star’ values ​​are the Danish firm specialized in the shipment of crude oil, Teekay Corporation (5.8%); Petrofac (4.9%), dedicated to energy engineering services; the oil and gas exploration group, Tullow oil (4.7%); the Canadian New Gold Inc (4.5%), focused on the exploration of gold, silver and copper; as well as Diamond Offshore (4%), dedicated to offshore drilling. Its position in the German Aryzta, which operates in the food industry and in which it has a 4.8% stake, is also significant.

This recipe, which also incorporates the ESG criteria aligned with article 8 of the Disclosure Regulation, has also enabled Alcalá Multigestión Garp to become the most profitable ‘made in Spain’ sustainable fund. Since last January 2, it has accumulated a revaluation of over 13% and is placed among the top positions for profitability among Spanish funds, due to an increase in its assets from 13 million at the end of last year to 17.3 million in the actual moment. These figures relegate Alcalá Multigestión Oricalco to the background, which after being crowned with the gold medal during 2020 and 2021, last year experienced a 51% bump, in line with the turbulence that the market and bitcoin went through.

After the ‘acceleration’ of the first weeks of January, they face 2023 from a cautious position, in which stock selection will be the cornerstone of Creand AM’s strategy. “The evolution of inflation and interest rate variables against a worsening macroeconomic environment makes it especially important to pay attention to business fundamentals and valuations,” he argues. Although this is not why he believes that there are no more opportunities: “It continues to have an impressive sectorial and geographical dispersion, where he believes that much can be gained from it”, he concludes.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

Most Popular

Recent Comments