Asset Management

EDM Inversión

EDM Inversion invests in a number of Spanish companies selected following an exhaustive analysis. The fund seeks to create value resulting from the progression of company profits, focusing on low exposure to the economic cycle and the visibility of their results with a long term investment horizon.

EDM Inversion has obtained considerably higher results than those of Ibex 35 since its launch in 1987, thanks to the profit traction of the companies it invests in and the active management of positions, in accordance with growth expectations and their valuation, acting normally with a reduced number of companies. During this period volatility of the fund was lower than that of the market.

This Spanish stock market fund is one with the longest history of results and it is managed with the same philosophy that was first  introduced by Juan Grau. The fund is being co-managed by Ricardo Vidal, Alberto Fayos and Juan Grau, since 1st January 2015.

In April 2014 we launched our Spanish variable income fund EDM Spanish Equity. This instrument replicates (Master- Feeder structure) the investment philosophy of our successful EDM Inversion Fund but with an important innovation in that it is domiciled in Luxembourg. As a result it is easy for investors of all kinds to subscribe, having accounts in both Spain and abroad.

Year EDM Inversión IBEX 35 Average Performance
2000 -5.87% -21.75% 15.88%
2001 -0.90% -7.82% 6.92%
2002 -10.81% -28.11% 17.30%
2003 24.95% 28.17% -3.22%
2004 23.59% 17.37% 6.22%
2005 23.91% 18.20% 5.70%
2006 38.46% 31.79% 6.67%
2007 1.49% 7.32% -5.83%
2008 -37.15% -39.43% 2.28%
2009 26.84% 29.84% -3.00%
2010 -9.00% -17.43% 8.43%
2011 -6.10% -13.11% 7.01%
2012 16.35% -4.66% 21.01%
2013 39.17% 21.42% 17.76%
2014 3.50% 3.66% -0.16%
2015 3.21% -7.15% 10.36%
2016 12.13% -2.01% 14.14%
2017 8.58% 7.40% 1.18%
2018 -8.79% -14.97% 6.18%
2019 11.44% 11.82% -0.38%
Total Return 226.2% -18.0% 244.2%
Annual Return 6.4% -1.0% 7.5%
Annualized Volatility 16.2% 21.4% -5.2%

Portfolio Construction

  • Long-only traditional investment style (bottom-up).
  • Stock picking. No benchmarking (low overlapping against its benchmark).
  • Long-term investment horizon (5 years on average).
  • Low turnover (18% average for the last 6 years).
  • High liquidity (93% of the portfolio can be sold within one trading day).
  • Concentrated portfolio, maximum 20 companies.
  • Fully invested (never below 80%): competition among stocks.

Stock picking Methodology

Stock picking Methodology

  • Focus on understandable and predictable businesses at reasonable prices
  • Management quality & integrity are crucial for us
  • Demanding criteria: High quality of the business (Average Portfolio = 11%)
  • Sustainable EPS growth (5Y Average EPS growth = 10,4%)
  • Recurrent and solid cash-flows
  • Companies focused on international markets to generate growth
  • Lack of sectors whose profits are not easily foreseen:
    • Banking
    • Cyclical sectors

Portfolio Top Holdings

Grupo Catalana Occidente 7,21%
CAF 6.98%
Grifols 6,53%
Inditex 6.46%
Global Dominion Access 5,34%
Cie. Automotive 4,98%
Fluidra 4,52%
Rovi 4,48%
Gestamp 4,44%
Repsol 4,12%
Portfolio on: 31/08/20

10 reasons for investing in EDM Inversion

• Consistent returns that surpass the market (+6% annual spread).
• Very low volatility for an equity fund (-4% annual spread).
• Excellent relative performance during the financial crisis (2007-2012).
• Stable investment philosophy for 24 years.
• Unique and proven investment process, developed by an experienced team.
• High quality (ROE) and liquidity of the portfolio.
• Defensive strategy: focused on “stable growth”, without cyclical sectors.
• Valuation of the companies in the portfolio at record lows.
• Very little overlapping with indexes and low correlation with other managers.
• Compatible with other equity investment styles.

FOREIGN CURRENCY Euro
START DATE 21/02/1987
MANAGEMENT FEE 2,25%
FUND MANAGER Juan Grau
MANAGEMENT FIRM EDM Gestión, S.A.U SGIIC
CUSTODIAN RBC Investor Services España
AUDITOR KPMG Auditores, S.L.
ADDRESS Spain
VALUATION Daily
CATEGORY Spanish Equities
LEGAL STRUCTURE ES & PT - FI
IDENTITY UK REPORTING STATUS (CLASE I)
LIQUIDITY D + 3
REGISTERED FOR SALE ON:
Spain ("Transferable")
CODES
ISIN ES0168674036
CNMV CODE 46
BLOOMBERG EDMINVE SM
REUTERS 0168674036.ES
LIPPER 60016055
DISTRIBUTION PLATFORMS
Inversis Bank