top of page

AZValor sees copper deficit providing long term opportunity

Value investor azValor Asset Management sees copper companies occupying a prospective high growth niche in the basic materials sector.

azValor Investment Director and CEO, Alvaro Guzman, notes that global Copper supply has been sluggish for some time but as world growth picks up, further supply shortages are likely before new capacity increases feed through.

In his latest quarterly investor letter, he notes that much has been made of the proposed switch from fossil-fuel powered vehicles to electric cars to reduce global carbon emissions, but few realise that these cars need four times more copper than used in most vehicles today.

“The company that produces the cheapest copper in the world and has the largest known reserves is Southern Copper, 89% owned by Grupo Mexico, a company which forms 6% of our portfolio azValor International,” said Guzmán.

He believes Copper producers are set to benefit from firmer pricing across the value chain. “China has an accumulated copper stock of just 30 million tonnes, compared to more than 100 million tonnes in the Western world. We expect demand to keep increasing for many years,” he notes.

The favourable long-term outlook for Copper will also benefit stocks like Minas de Buenaventura (presently with a 9% weight in the azValor Internacional fund) through its 20% stake in Cerro Verde, the third largest copper mine in the world.

“We believe the value of that share is currently equivalent to the stock price. In addition, investors get another major asset within the price: production of 600,000 ounces of gold a year at an all sustaining cost of $1,000/ounce.”

Guzman and his colleagues launched azValor in November 2015 and it has already accumulated some €1.7bn under management in four core funds: two pension funds and two Luxembourg (SICAV) funds. Unusually, the business focuses on selling directly to retail investors, who appreciate the track record of its two principal portfolio managers – Guzman and another of his co-partners Fernando Bernad. As an active manager Guzman has been running his ‘International’ strategy since January 2003, as part of the management team of Bestinver AM, which Bernad joined in 2007. Guzman intends to close the fund once it reaches €2.5bn to protect its performance record and investor interests.


Notes to Editors


azValor is an independent Spanish asset management boutique, founded by a group of experienced investment professionals, who adopt a high conviction Value investing philosophy. The firm’s goal is that of a classic value investment house, that is, to maximise long-term returns on investments and minimise the risks of permanent losses. Set up in 2016, azValor has four funds, accounting for some €1.7 billion assets under management. The Value approach involves exhaustive analysis of stocks within a defined universe to uncover good businesses with sustainable competitive advantages and a high return on capital employed. As value investors, Managers seek companies whose intrinsic value is not reflected in their share price and which are managed by teams that look after the interests of shareholders. Crucially, AzValor managers are co-invested with clients, ensuring a true alignment of interests.

For more information about azValor Asset Management, please go to

2.Compliance Notes

The information provided is copyright of azValor Asset Management SGIIC, S.A.U. whose registered office is Pº de la Castellana 110 – 3ª planta, 28046 Madrid.

azValor Asset Management SGIIC, S.A., as well as the products and services it provides, are subject to the legislation in force and under the supervision of the Spanish funds regulator Comisión Nacional de Mercado de Valores (CNMV) and other regulatory bodies.

This communication is specifically written for use only by journalists. It has been prepared solely for information purposes and is not a solicitation, or an offer to buy or sell any security. The information on which the document is based has been obtained from sources that we believe to be reliable, and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to their accuracy. All expressions of opinion are subject to change without notice and the views expressed are those of the fund manager at the time of writing, and may have since changed.

Please note that the prices of mutual funds and shares, and the income from them, can fall as well as rise and you may not get back the amount originally invested. This can be as a result of market movements and also of variations in the exchange rates between currencies. Past performance does not guarantee or predict future performance.

azValor accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this document or any part of its contents. The use of this document should not be regarded as a substitute for the exercise by the recipient of his or her own judgment.

For further information please contact :

John Morgan, Managing Director

Fortuna Asset Management Communications

Tel: 07769 262272


bottom of page