Miguel Maeztu @AzeriaInvest: "𝐒𝐞𝐥𝐥𝐢𝐧𝐠 𝐏𝐫𝐨𝐬𝐮𝐬... 𝐛𝐮𝐲𝐢𝐧𝐠 𝐓𝐞𝐧𝐜𝐞𝐧𝐭 There has..."

Luxembourg

𝐒𝐞𝐥𝐥𝐢𝐧𝐠 𝐏𝐫𝐨𝐬𝐮𝐬... 𝐛𝐮𝐲𝐢𝐧𝐠 𝐓𝐞𝐧𝐜𝐞𝐧𝐭 There has been a key change in the portfolio composition, but also not really a change. I have sold Prosus and bought Tencent. As a reminder, I held Prosus as a means to hold Tencent with the added bonus of ongoing sales of Tencent to fund buybacks by Prosus management to close the NAV discount over time and thus earn a return on it equal to Tencent + a little something. Tencent is basically the whole NAV of Prosus, and then there are some additional private investments on top of it. The issue is that management is focusing on selling Tencent not only to buyback but also to invest in these private investments, largely in the food delivery sector. I am excited to hold Tencent, arguably one of the best businesses of the world and a fantastic capital allocation team. I am not excited to own a business that ploughs capital into uncertain growth investments at the expense of selling the fantastic business of Tencent. Since management of Prosus is no longer aligned with my own long-term interest that are essentially compounding on the back of wonderful companies (Tencent), I have decided to swap my Prosus position for Tencent directly. Factually, I remain invested in Tencent. But also, I avoid this more risky venture / growth capital business that Prosus is prioritising more and more over time. 𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘵𝘩𝘪𝘴 𝘪𝘴 𝘵𝘩𝘦 𝘴𝘰𝘭𝘦 𝘰𝘱𝘪𝘯𝘪𝘰𝘯 𝘰𝘧 𝘵𝘩𝘦 𝘢𝘶𝘵𝘩𝘰𝘳, 𝑢𝑛𝑟𝑒𝑙𝑎𝑡𝑒𝑑 𝑡𝑜 𝑚𝑦 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑟 𝘢𝘯𝘥 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘐 𝘮𝘪𝘨𝘩𝘵 𝘣𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘦𝘥 𝘪𝘯 𝘵𝘩𝘦 𝘴𝘵𝘰𝘤𝘬𝘴 𝘮𝘦𝘯𝘵𝘪𝘰𝘯𝘦𝘥. 𝘋𝘰 𝘺𝘰𝘶𝘳 𝘰𝘸𝘯 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘢𝘯𝘥 𝘪𝘧 𝘶𝘯𝘴𝘶𝘳𝘦, 𝘴𝘦𝘦𝘬 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘊𝘰𝘱𝘺 𝘛𝘳𝘢𝘥𝘪𝘯𝘨 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘥𝘷𝘪𝘤𝘦 | 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘢𝘵 𝘳𝘪𝘴𝘬 | 𝘗𝘢𝘴𝘵 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘨𝘶𝘢𝘳𝘢𝘯𝘵𝘦𝘦 𝘧𝘶𝘵𝘶𝘳𝘦 𝘳𝘦𝘴𝘶𝘭𝘵𝘴 $0700.HK (Tencent) $PRX.NV (Prosus NV) $BABA (Alibaba-ADR) $UK100 $ESP35

Not investment advice. The author may have financial interests in the mentioned instruments.