Tweedy Browne (Trades, Portfolio) Global Value Fund recently disclosed its portfolio update via form NPORT-P to the Securities and Exchanges Commission for the first quarter of 2022, which ended on March 31.
The fund operates as part of New York-based value investing firm Tweedy, Browne Co. LLC. The portfolio managers aim to invest in a diverse range of companies in developing countries, with an emphasis on undervalued securities, in order to achieve long-term capital growth. Though it invests primarily in non-U.S. marketable equity securities, the fund does own shares of some U.S.-listed securities if the portfolio managers perceive an attractive enough growth opportunity.
Based on the latest NPORT-P filing, the fund’s top new buys for the quarter were Ionis Pharmaceuticals Inc. (
Investors should be aware that, just like 13F reports, NPORT-P reports do not provide a complete picture of a guru’s holdings to the public. Filed by certain mutual funds after each quarter’s end, they collect a wide variety of information on the fund for the SEC’s reference, but in general, most of the information made public is in regard to long equity positions. Unlike 13Fs, they do require some disclosure for long equity positions in foreign stocks. Despite their limitations, these filings can still provide valuable information. You can read more about form NPORT-P at the SEC website here.
The fund established a 1,819,506-share stake in Ionis Pharmaceuticals (
Ionis is a California-based biotech company that researches and develops RNA-targeted therapeutics. Its antisense therapies are designed to interact directly with RNA to disrupt disease processes.
On April 19, shares of Ionis traded around $41.25 for a market cap of $5.83 billion. According to the GF Value chart, the stock is modestly undervalued.
The company has a GuruFocus financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10. Warning signs include assets growing faster than revenue and weighted average cost of capital exceeding return on invested capital, while positive signs include a three-year revenue per share growth rate of 8.7% and a three-year Ebitda per share growth rate of 36%.
Sumitomo Heavy Industries
The fund also picked up 1,284,760 shares of Sumitomo Heavy Industries (
Sumitomo is a Japanese manufacturer of heavy industrial machinery, automatic weaponry, ships, bridges, steel structures, equipment for environmental protection (such as recycling equipment) and more.
On April 19, shares of Sumitomo traded around 2,645 yen for a market cap of 324.03 billion yen. According to the GF Value chart, the stock is modestly undervalued.
The company has a GuruFocus financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10. Warning signs include declining operating and gross margins, while positive signs include price-earnings, price-book and price-sales ratios close to 52-week lows.
The fund bought 1,704,935 shares of SKF (
SKF, short for Svenska Kullagerfabriken, is a Swedish manufacturer of bearings, seals, lubrication and lubrication systems, mechatronics, power transmission products and related services.
On April 19, shares of SKF traded around 170 kronor for a market cap of 70.13 billion kronor. According to the GF Value chart, the stock is modestly undervalued.
The company has a GuruFocus financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10. Warning signs include declining revenue per share and an Altman Z-Score in the grey zone, while positive signs include ROIC that is consistently higher than WACC, indicating value creation.
The fund initiated a 1,569,538-share holding in Kemira (
Based in Finland, Kemira is a global supplier of chemicals for business in water-intensive industries. It operates in two segments: pulp/paper products and industry/water.
On April 19, shares of Kemira traded around 12 euros for a market cap of 1.84 billion euros. According to the GF Value chart, the stock is modestly undervalued.
The company has a GuruFocus financial strength rating of 3 out of 10 and a profitability rating of 7 out of 10. Warning signs include a low cash-debt ratio of 0.14 and a distressed Altman Z-Score of 1.98, while positive signs include ROIC typically exceeding WACC.
The fund picked up a stake worth 2,943,779 shares in Iveco Group (
Iveco is an Italian automotive manufacturer that produces commercial vehicles as well as powertrain technologies and mass transit, defense, construction and firefighting vehicles.
On April 19, shares of Iveco traded around 5.96 euros for a market cap of 1.62 billion euros. The stock is down 41% since it went public on Jan. 3.
The company has a GuruFocus financial strength rating of 3 out of 10 and a profitability rating of 2 out of 10. There is not much publicly available financial information on the company yet, since it just went public at the beginning of this year. The cash-debt ratio is low at 0.08.
As of the end of the quarter, the fund’s latest NPORT-P reported long holdings in 95 common stocks valued at a total of $5.96 billion. The turnover for the quarter was 5%.
In terms of sector weighting, the firm was most invested in consumer defensive, financial services and industrials stocks.