An angry teenager unable to deal with his frustration because he wants things here and now. With this curious comparison, Bestinver compared the behavior of the market in recent months, where, according to him, all the data are amplified and the movements become more radical, exacerbated by the pressure of passive management. But this noisy environment creates opportunities for investment firms that can analyze companies over the long term, said Mark Giacopazzi, the firm’s chief investment officer.
Taking up Warren Buffett’s expression that the stock market serves to transfer money from impatient investors to those who are patient, the management company Acciona rightly points out that more and more investors are moved by the dominant discourse in certain moments. “Before, the markets were short-term, but now, with passive management, everything is black or white and the movements are more radical, stronger,” Giacopazzi emphasized.
A dynamic that was also perceptible in Bestinver’s Iberian portfolio. “We have not managed to anticipate the change in direction of companies, which is not yet the case,” admitted Ricardo Seixas, head of the manager’s Spanish stock exchange. “There is a significant concentration in passive management which affects fund performance, but we have started to recycle companies with very high returns, as we see more potential in other segments, notably in large companies average,” he said.
Among the movements made in the third quarter, the weight reduction in financial institutionslike Santander, and the sale of Bankinter, while increased the position of Amadeus and bought Endesa. Among the banks they have in their portfolio, he highlighted CaixaBank and the Portuguese BCP.
Tomás Pintó, head of the international portfolio of the Acciona company, highlighted that the diversification of values present in the funds “made it possible to navigate the extreme volatility, respecting valuations as much as possible, which shows that risk management is functioning”.
Among the movements carried out this summer, he highlighted that they continued to increase the weight of the English company Reckitt Benckiser, andgradually buy back BMW and Stellantiswhich now represent just over 3% of the portfolio. In addition, they also increased in Heidelberg and Jerónimo Martins in the Iberian part of the Bestinfond, one of its emblematic funds.
On the other side, reduced the position of Meta and Rolls Roycean example for Pintó of the blindness of investors in the face of short-termism, with the exception of Berkshire Hathaway, Barclays, Deutsche Borse, Pandora and Philips, in a portfolio in which “we had never had in 36 years history of Bestinver 70% of companies buy back shares.
On the business side, the manager announced that he would launch a retirement plan that replicates its North American stock fund.
