Federico Zaldua

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  • Go Long On Nestle

    By Federico Zaldua - February 8, 2013 | Tickers: DANOY.PK, NSRGY, UN

    Nestle (NASDAQOTH: NSRGY), the favorite Consumer Goods Company (CGC) of many great investors such as the successful value driven hedge fund Gardner Russo & Gardner seems relatively undervalued. Every time I have been into a Columbia Investment Management Association meeting (and I went to every single one since 2010), Mr. Russo explains why almost every equity investor should own Nestle shares. His reasons are many: Nestle has great brands (from Nespresso more »

  • Santander's Dividend Is Sustainable

    By Federico Zaldua - February 7, 2013 | Tickers: BBVA, SAN

    I highly recommend the article on Emilio Botin, the Chairman of Banco Santander (NYSE: SAN), published by the Financial Times last weekend. The article told the story of how Botin made himself into one of the most powerful individuals in Spain and one of Europe's most influential bankers. The article states that the bank is sustaining its huge +9.5% cash dividend (although that represents an expected 2013 116 more »

  • Household and Personal Care Portfolio Candidates

    By Federico Zaldua - February 6, 2013 | Tickers: CL, PG, CLX

    If you read many of my posts then you should know that I love Consumer Goods Companies (CGC). I wrote many times about beverage champions, such as AB InBev, but I am now trying to dig into the Household and Personal Care Products (HPC) sub sector. I think that, right now, this sub sector should be a part of any long term portfolio focused on quality and income stability because more »

  • 3 Stocks to Buy

    By Federico Zaldua - February 1, 2013 | Tickers: AKS, BP, TEF

    The year started wonderfully well for the average investor in the US equity markets. The S&P 500 is up by over 5% since the start of 2013 and now it stands at around the 1,500 level. Lately, I have been talking with many money managers and a number of them are afraid the market may suffer a strong correction at some point in between the first and the more »

  • Alcoa Deserves A Bet

    By Federico Zaldua - January 29, 2013 | Tickers: AA, CENX, NOR

    Aluminum, which is used in everything from cans to cars or planes, has a growing global demand that increases hand in hand with the growth experienced by emerging markets like China and Brazil. As a matter of fact, Alcoa (NYSE: AA), the American aluminum champion that just reported earnings, expects global demand to grow by 7% in 2013 from 2012´s 6% (which has been the average growth rate for more »

  • Betting on AK Steel

    By Federico Zaldua - January 18, 2013 | Tickers: AKS, NUE, X

    I have been recommending steel stocks such as Nucor (NYSE: NUE), US Steel (NYSE: X) or AK Steel (NYSE: AKS) since the end of last year. From November 2012, the results have only been good for Nucor (the stock is up by 13%), which is the US steel company with the strongest fundamentals and a rock solid balance sheet. On the other hand, financially weaker producers have performed poorly. Now more »

  • Taking A Look At The US Auto Industry

    By Federico Zaldua - January 17, 2013 | Tickers: F, GM, TM

    The US auto industry has already recovered from its 2009 near death experience, and many great investors - such as David Einhorn - are going long in the industry. As a matter of fact, 3Q results came in considerably better than expected for almost all automotive companies within the US. Better yet, the best is still ahead.

    In this article I will take a quick review of the US' main players, Ford more »

  • Your French Portfolio

    By Federico Zaldua - January 16, 2013 | Tickers: E, DANOY.PK, ORAN, TOT

    Along with Germany, France is the most competitive big European economy. As a matter of fact, the country has been able to avoid recession in 2012 and its expected to do the same in 2013 (the IMF expects France to grow by 0.4% this year). Since the country is not as financially troubled as Italy or Spain, most French equities sell at higher multiples than Italian or Spanish companies more »

  • Discovery Likes These Stocks

    By Federico Zaldua - January 16, 2013 | Tickers: AAPL, BRCM, S

    Discovery Capital Management is one of my favorite Hedge Funds. As most funds, Discovery is a one man show but this man, Robert Citrone, is a witty investor and, throughout the years, he has shown wonderful results. Citrone, who worked along Julian Robertson in Tiger Management, runs the Global Opportunity Fund. It’s always a good idea for any investor to look at what this fund is selling or buying more »

  • A LatAm Portfolio For 2013

    By Federico Zaldua - January 14, 2013 | Tickers: BUD, CX, ABV, TX

    Latin America (LatAm) is my region of expertise. I invest almost exclusively in LatAm, so I got to know pretty well the companies in the region. I have also hold LatAm equities for long periods of time so I always look closely at equity valuations within the region. Nowadays I find that on a price to book versus relative ROE basis LatAm has a 13% premium relative to other Emerging more »

  • Alternatives To Fixed Income

    By Federico Zaldua - January 14, 2013 | Tickers: SAN, BP, HYG, JNK

    As a Fixed Income value investor it’s not easy to find really good investments at reasonable prices anymore. You can find specific opportunities in Europe or in countries such as Argentina or Venezuela, but the truth is that life is not so easy when US high quality credits are close to the zero bound - US 10 year Government bonds offer a 1.9% yield. The US bond market became more »

  • Three Index Bets for 2013

    By Federico Zaldua - January 14, 2013 | Tickers: ABV, EWZ, EWP, PBR, SPY

    Its fair to reconsider your portfolio at the beginning of every new year and think of what has changed in the world, which bets have performed well for you and which ones have gone against you. At the beginning of every year I try to think which trends might be in place during the next 12 months and, based on that, I try to see which assets could benefit from more »

  • Icahn's Top Activist Holdings

    By Federico Zaldua - January 14, 2013 | Tickers: CHK, FRX, IEP, NAV

    According to Investopedia, Icahn's strategy involves targeting a company he thinks is poorly run and whose stock price is trading below intrinsic value. Icahn buys the stock as it goes materially down. In fact, he thrives when the markets are on a downtrend; when everyone else is selling, he starts buying. He accumulates enough of an ownership position to lobby for a position on the company's board of more »

  • Should You Bet On Greenlight's Picks?

    By Federico Zaldua - January 14, 2013 | Tickers: AAPL, DLPH, GM, MRVL, STX

    David Einhorn’s Greenlight Capital, a value oriented hedge fund, focuses on situations where a stock is seriously undervalued and the margin of safety is high. Einhorn is known to be very disciplined at sticking to what he is good at. He is excellent at figuring out the 3 key drivers to analyze, has courage to invest, and is active on the short side. When Greenlight analyzes a stock, it more »

  • Make Nestle Part Of Your Portfolio

    By Federico Zaldua - January 9, 2013 | Tickers: BUD, DANOY.PK, NSRGY, UN

    Nestle (NASDAQOTH: NSRGY) has been for a while the favorite Consumer Goods Company (CGC) of many great investors such as the successful value driven hedge fund Gardner Russo & Gardner. As a matter of fact, every time I have been into a Columbia Investment Management Association meeting (and I went to every single one since 2010), Mr. Russo explains why almost every equity investor should own Nestle shares. His reasons are more »

  • How to Find Good and Cheap Companies?

    By Federico Zaldua - January 8, 2013 | Tickers: DISH, HHC, LUK, STRZA

    In this article I analyze Horizon Kinetics portfolio. Horizon is a value oriented institution that tries to capitalize on the overwhelming need for investors to achieve short-term results. According to the fund´s website, long-term price inefficiencies can be created by the collective, short-term focus of the markets. Events visible 3 to 5 years in the future have little utility to the average portfolio manager so the fund seeks to more »

  • 4 Stocks from a Deep Value Investor

    By Federico Zaldua - January 8, 2013 | Tickers: ATNY, EA, H, SIX

    In this article I analyze Hayman Advisors portfolio. Kyle Bass is the managing member and principal of Hayman Advisors, which he founded in late 2005 at Dallas. Hayman is a deep-value oriented hedge fund that specializes in recognizing distressed debt and special situations at the micro level. The fund holds a highly concentrated portfolio of just five equity positions. Be sure that every purchase was deeply analyzed.

    I mentioned many more »

  • 3 Undervalued Picks From A Top Value Investor

    By Federico Zaldua - December 31, 2012 | Tickers: DLB, GME, ZZ, TPX

    In this article I analyze Joel Greenblatt’s Gotham Partners. Known for his Magic Formula Investing, and founder of the New York Securities Auction Corporation (NYSAC), Greenblatt is founder and managing partner of Gotham Capital. He is the author of two investment books, including The little Book that Beats the Market. Greenblatt tries to find both cheap and good companies. He looks for value with a catalyst. Greenblatt likes special more »

  • Are These Tech Giants Good Buys?

    By Federico Zaldua - December 26, 2012 | Tickers: INTC, MSFT

    Many times in this blog I have stressed that valuation multiples are static. They do not reflect business or corporate trends and if those trends are not stable then multiples can change really fast. A good example of this would be Research In Motion. The company seemed cheap in early 2011, but a few months later, market share trends changed and the stock went from $55 in April to $25 more »

  • 3 Top Opportunities From Fir Tree Partners

    By Federico Zaldua - December 26, 2012 | Tickers: EQIX, GPN, MSI

    In this article I analyze Fir Tree Partners portfolio. Fir Tree Partners is a New York City based privately owned investment hedge fund founded by Jeffrey Tannenbaum in 1994. The fund has been averaging a healthy return of 28% annually since its inception, beating the S&P 500 index by over 18%. Today, the firm manages over seven billion dollars on behalf of major endowments, foundations, pension funds (private and more »