The Tweedy Browne (Trades, Portfolio) Global Value Fund, an investment advisory and fund management firm dedicated to the principles of Benjamin Graham and David Dodd, has a quarter-over-quarter turnover rate of 3% – which, in a portfolio that has nearly 100 stocks, means an approximate turnover of three stocks in a quarter.
And that is precisely what Tweedy Browne (Trades, Portfolio) did in the first quarter of 2015 – it sold its stakes in three companies and bought stakes in three new ones.
New buys
The three new stakes in Tweedy Browne (Trades, Portfolio)’s portfolio are Hyundai Mobis Co Ltd (XKRX:012330, Financial), Tai Cheung Holdings (HKSE:00088, Financial) and Oriental Watch Holdings Ltd (HKSE:00398, Financial).
Tweedy Browne (Trades, Portfolio) bought 112,133 shares of Hyundai Mobis, an automotive company based in Seoul, South Korea, for an average price of â‚©248,700 (nearly $229.43 in American currency) per share.
Hyundai Mobis has a market cap of â‚©23.02 trillion and an enterprise value of â‚©10 trillion. It has a P/E of 10.7, a Price/Book of 1.3 and a Price/Sales of 1.3.
Tweedy Browne (Trades, Portfolio) bought 2,561,000 shares of Tai Cheung Holdings, a Hong Kong-based property development and investment company, for an average price of HK$6.4 (about 83 cents in American money) per share.
Tai Cheung has a market cap of $4.05 billion and an enterprise value of $2.06 billion. It has a P/E of 4.0, a Price/Book of 0.6 and a Price/Sales of 41.0.
Tweedy Browne (Trades, Portfolio) purchased 7,364,000 shares of Oriental Watch Holdings, a Hong Kong-based investment holding company and watch trader, for an average price of HK$1.32 (slightly more than 17 cents in American currency) per share.
Oriental Watch Holdings has a market cap of $753.21 million and an enterprise value of $816.67 million. It has a P/E of 36.7, a Price/Book of 0.3 and a Price/Sales of 0.2.
Divestitures
The three stakes Tweedy Browne (Trades, Portfolio) sold were Joy Global Inc (JOY, Financial), KONE Oyj (OHEL:KNEBV, Financial) and Pacific Rubiales Energy Corp (TSX:PRE).
Joy Global is a Fortune 1000 mining machinery company based in Milwaukee. Founded in 1884, Joy Global makes and services mining equipment that is used to extract coal, copper, iron ore, oil sands, gold and other minerals throughout the world. Tweedy Browne (Trades, Portfolio) sold its 1,180,243-share stake in Joy Global for an average price of $42.4 per share, nearly 33% less than the fund paid when it first invested in the company two years ago.
Joy Global was selling for $39.61 per share when the New York Stock Exchange closed Tuesday afternoon.
Joy Global has a market cap of $3.86 billion and an enterprise value of $4.99 billion. It has a P/E of 13.0, a Price/Book of 1.5 and a Price/Sales of 1.1. At the end of the fourth quarter, gurus Joel Greenblatt (Trades, Portfolio), Ray Dalio (Trades, Portfolio) and James Barrow (Trades, Portfolio) had shares of Joy Global in their portfolios.
KONE Oyj is a 105-year-old Finnish engineering and service company and one of the world’s largest manufacturers of elevators and escalators. Tweedy Browne (Trades, Portfolio) sold its 969,520-share stake in KONE Oyj for an average price of €45.38 (about $48.86 in American currency) per share.
KONE Oyj has a market cap of €22.25 billion and an enterprise value of €21.05 billion. It has a P/E of 28.5, a Price/Book of 10.8 and a Price/Sales of 3.0.
Pacific Rubiales Energy is a Toronto-based oil and gas company with an emphasis on its properties in the South American nations of Colombia and Peru. Tweedy Browne (Trades, Portfolio) sold its 5,605,000-share stake for an average price of $3.18 per share in Canadian dollars (about $2.60 in American dollars).
Pacific Rubiales Energy has a market cap of $1.21 billion and an enterprise value of $6.44 billion. It has a Price/Book of 0.4 and a Price/Sales of 0.2.
To view international stock purchases, visit the Guru's International Picks page. Not a premium member of GuruFocus? Try it free for 7 days.
