Beltran de la Lastra Long Belfesa: Sohn London Conference

We're posting up notes from the Sohn London conference 2017.  Next up is Beltran de la Lastra of Bestinver who pitched a long of Belfesa.


Beltran de la Lastra's Sohn London Presentation

A reasonably easily understood and overlooked company that has been recently IPOed. Market cap: $1bn euro.

Belfesa recycles steel and aluminium. Ninety-two per cent of their revenues come from the selling the of recycled materials, particularly zinc. Revenues tend to get blown around with the price of zinc, so they hedge the zinc price.

The company is difficult to classify by sector and by country. In its previous listing it was listed in Spain (1993) and this time it has been listed in Germany (2017). Triton bought it in 2013 and they sold half of their holding at the IPO, one month ago.

In most of the countries where they operate the market share is close 100%. It’s a consolidated industry. The replacement costs are high – 67m euro per factory. Regulation is getting stronger and is forcing the steel and aluminium manufacturers to recycle. The customer relationships tend to be long term.

They’ve hedged 70% of their zinc sales out until 2020. Ninety percent of volume is pre-sold for the next 3 years.


Be sure to check out the rest of the presentations from Sohn London 2017.

Beltram Lastra's Sohn London Presentation: Long Indra

We're posting up notes from the Sohn London Investment Conference 2015.  Next up is Beltram Lastra of Bestinver who pitched a long of Indra (BME:IDR).


Beltram Lastra's Sohn London Conference Presentation 2015

Long Indra (BME: IDR) 

Indra is a Spanish IT company. One of its main areas of business is the provision of air traffic management systems. The company has been through a difficult patch. It has recently taken write-downs of Euro 900m. It has cut labour costs and made redundancies. The share price has suffered and has been cut in half since 2007.

Central to Beltram Lastra’s investment case is the new CEO who was appointed in Jan 2015. Lastra believes the new CEO will turn the company around in the medium-term. In the short-term there are potential risks from further write downs in the Brazilian part of the business and possible balance sheet issues due to the company’s high level of debt.


Be sure to check out the rest of the Sohn London Conference presentations.

Bestinver Asset Management's Presentation on Exor: Value Investing Congress

Continuing our coverage, today we're posting up more notes from the Value Investing Congress.  Below are notes and the slideshow presentation from Bestinver Asset Management's Alvaro Guzman de Lazaro.

Bestinver has seen an average return of 15.2% since 1993.  Europe is less efficient than the US.  80% of investments are in family controlled businesses.  The following notes are courtesy of Kyle Mowery from GrizzlyRock Capital.

Investment Idea: Exor

•    Past explains future – easier than projecting future
•    Italian holding co – Agnelli holding co (Fiat family)
•    Upside over 100% (trading at holding discount)
•    CEO doesn’t have a track record of capital allocation.
•    Current price of €15 with current book valuation of €31.
•    Bestinver estimate of intrinsic value is €46
•    Holds Fiat industrial, Fiat Auto, SGS, Cushman and Wakefield, Alpilior (Italian tourism), and Sequana.

Embedded below is Alvaro's slideshow presentation on European value:




Be sure to click here for other presentations from the Value Investing Congress.