Tweedy Browne (Trades, Portfolio) Global Value, an outperforming value fund founded in 1993, updated its first quarter portfolio changes this week, revealing five new stock purchases.
Tweedy Browne (Trades, Portfolio) purchased two stocks from Hong Kong, one of its smallest country allocations at fourth quarter end and one stock from Germany, one of its larger country allocations. Managers’ purchase of Bank of New York Mellon Corp. (BK, Financial), the largest new position, slightly expanded the fund’s weighting in its largest sector, financials. Finally, it purchased Avent Inc., a U.S. computer hardware company.
The firm’s Global Value Fund invests most of its assets into undervalued equities, mostly in developed markets with reach into emerging markets, with some in the U.S. Since inception, it produced a 9.2% return against its MSCI EAFE benchmark’s 4.8%.
Fund managers expected first-quarter volatility to present opportunities to buy on dips, though their first quarter new purchases in the end only slightly exceeded their average for last year.
“As we write, global equity markets are once again in turmoil. With equity valuations at high levels, the prospects for economic growth around the globe appearing quite modest, and increasing geopolitical tensions, the volatility experienced late last summer could very possibly be with us for some time,” The fund’s fourth-quarter letter said. “If that indeed becomes the case, our Funds should be in a position to take meaningful advantage in the weeks and months ahead.”
New first quarter buys
The Hongkong and Shanghai Hotels Ltd. (HKSE:00045, Financial)
Tweedy Browne (Trades, Portfolio) bought 3.05 million shares of The Hongkong and Shaghair Hotels, its smallest new addition at 0.05% of the portfolio. Its shares cost HK$8 on average for the quarter.
The Hongkong And Shanghai Hotels Ltd. has a market cap of $12.85 billion; its shares were traded around HK$8.28 with a P/E ratio of 12.82 and P/S ratio of 2.22. The trailing 12-month dividend yield of The Hongkong and Shanghai Hotels Ltd. stocks is 2.79%. The forward dividend yield of The Hongkong and Shanghai Hotels Ltd. stocks is 2.43%.
Linde AG (XTER:LIN, Financial)
Tweedy Browne (Trades, Portfolio) bought 63.292 shares of Linde AG, a 0.13% portfolio weight. Its shares cost 126 euro on average for the quarter.
Linde AG has a market cap of $24.36 billion; its shares were traded around $131.15 with a P/E ratio of 21.24 and P/S ratio of 1.36. The trailing 12-month dividend yield of Linde AG stocks is 2.52%. The forward dividend yield of Linde AG stocks is 2.76%. Linde AG had an annual average earnings growth of 5.0% over the past 10 years. GuruFocus rated Linde AG the business predictability rank of 2.5-star.
Hang Lung Group Ltd. (HKSE:00010, Financial)
Tweedy Browne (Trades, Portfolio) bought 3.374 million shares of Hang Lung Group, a 0.14% portfolio weight. Its shares cost HK$22 on average for the quarter.
Hang Lung Group Ltd. has a market cap of $32.11 billion; its shares were traded around $23.65 with a P/E ratio of 10.0 and P/S ratio of 3.38. The trailing 12-month dividend yield of Hang Lung Group Ltd. stocks is 3.64%. The forward dividend yield of Hang Lung Group Ltd. stocks is 3.6%. Hang Lung Group Ltd had an annual average earnings growth of 9.4% over the past 10 years.
Tweedy Browne (Trades, Portfolio) bought 412,000 shares of Avnet Inc., a 0.26% portfolio weight. Its shares cost $41 on average for the quarter.
Avnet Inc. has a market cap of $5.85 billion; its shares were traded around $44.55 with a P/E ratio of 10.74 and P/S ratio of 0.22. The trailing 12-month dividend yield of Avnet Inc. stocks is 1.50%. The forward dividend yield of Avnet Inc. stocks is 1.52%. Avnet Inc. had an annual average earnings growth of 5.3% over the past five years.
Bank of New York Mellon Corp. (BK, Financial)
Tweedy Browne (Trades, Portfolio) bought 1,315,780 shares of Bank of New York Mellon, a 0.69% portfolio weight. Its shares cost $36 on average for the quarter.
Bank of New York Mellon Corp. has a market cap of $41.21 billion; its shares were traded around $38.31 with a P/E ratio of 14.13 and P/S ratio of 2.79. The trailing 12-month dividend yield of Bank of New York Mellon Corp. stocks is 1.77%. The forward dividend yield of Bank of New York Mellon Corp. stocks is 1.8%. Bank of New York Mellon Corp. had an annual average earnings growth of 7.3% over the past five years.
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