WPP (NYSE:WPP), one of our newer holdings, was in the news late in the quarter as the company announced that it had hired a law firm to investigate allegations of personal misconduct by Martin Sorrell, the company’s CEO and one of Britain’s best known and highly acclaimed business leaders. The company stressed that any financial liabilities associated with the allegations are not material, and over the weekend of April 14, Sorrell announced his retirement. We continue to monitor the situation closely, but it is possible that this Board intrigue could result in changes at the company that might be beneficial to shareholders, such as streamlining the business and exiting noncore assets. The situation remains fluid. In our view, the company remains fundamentally a good business given its asset light nature and variable cost structure. It is significantly undervalued in our view, and currently has a dividend yield of nearly 5% while we wait for value recognition in its shares.
From Tweedy Browne (Trades, Portfolio)'s first-quarter 2018 shareholder letter.
