“Buy good companies at cheap prices and avoid bad companies.” Beltrán de la Lastra repeats in Panza Capital the formula that already gave him good results in previous projects and that now, in the first quarter of the year, has allowed the manager he presides over to start with returns of more than 8%. His bet for the following quarter incorporates Amazon, reinforces the brick -literally- and continues to rely on consumption and industry as the main pillars of his strategy. Almost no banks.

“We do not assume the idea that the banking crisis has ended in two weeks,” De la Lastra explained in the presentation to the media of the firm’s quarterly letter. Between January and March, the manager withdrew her position in JP Morgan and reduced her exposure to Bankinter, despite the fact that she considers that she “manages risks well.” “We hope that [the crisis] will be resolved, but there is a little more risk that instability will remain” after the turbulence in March, which is why the company hardly has any positions in the sector.

“We are not in a situation like the one in 2008. The banks are not leveraged, the quality of their assets is much better and the regulation in Europe is more powerful”, acknowledged the manager’s president, however, he also admitted that the recent crisis has brought to light that “the part that the banks do not control has much more risk than before”, hence the caution. “The way to earn money with banks on the stock market is prudently and without heroics. Not all banks are the same,” said De la Lastra.

Faced with reluctance about the financial sector, Panza Capital has strengthened its positions in companies related to consumption and industry, with names such as Covestro (the world’s leading chemical company in the manufacture of polymers) or Stroeer among the most prominent. However, among the most striking additions in recent months is Amazon, which has reached “a reasonable entry point” after two years in which the stock has weakened due to lower-than-expected cloud growth.

Also notable is the Wetherspoon chain of bars, which operates in Ireland and the United Kingdom and whose latest results have led Panza Capital to reinforce its investment, to the point that it represents the largest position in its portfolio.

Another of its bets for the coming months is also located in the United Kingdom, Ibstock, a brick manufacturer that “generates cash, has little debt and is suffering and will suffer the bad moment of the construction cycle in the country, although its valuation more than reflects it”. His commitment to brick materializes with two other manufacturers, Forterra and Wienerberger, but there is no trace of the real estate sector. “There will be a significant slowdown in construction in the United Kingdom this year. This macroeconomic environment brings opportunities, but they are uncomfortable,” Beltrán de la Lastra acknowledged.

Finding opportunities in an uncomfortable environment is the basis of Panza Capital’s strategy. For the coming months, the firm anticipates that inflation, the risk of recession, the energy crisis, banking instability and geopolitical tensions -especially between China and the US- will mark the pace of the markets. “There are also other variables that have not yet shown their face, such as excessive valuation and leverage in venture capital funds.” In the future, De la Lastra has also highlighted the risk of the high public debt of the States and political polarization, although he is committed to obtaining attractive returns in the long term.

At the end of the first quarter, Panza Capital had more than 1,300 investors and 125 million euros under management with a return of 8.8% in its Panza Inversiones fund; 8.9% in Panza Valor and 9.8% in Panza Premium.

The manager assures that it integrates sustainability into its analysis, although it considers that the sector and the markets have a long way to go in this matter. “More regulation is needed and companies are able to report more reliable information on this matter,” said Gustavo Trillo, CEO of the company.

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