The Tweedy Browne (Trades, Portfolio) Global Value Fund disclosed this week its top three buys for the second quarter included a new position in Euromoney Institutional Investor PLC (LSE:ERM, Financial) and position boosts in the following two companies: CNH Industrial NV (CNHI, Financial) and Baidu Inc. (BIDU, Financial).
The fund’s managing directors seek long-term capital appreciation through a Benjamin Graham, value-oriented approach, investing primarily in non-U.S. securities that are undervalued, with some exposure to U.S. securities. As of quarter-end, the $7.64 billion equity portfolio contains 88 stocks, with approximately 24.85% exposure in the financial services sector and 20.03% exposure in the consumer staples sector.
Euromoney
The fund purchased 198,096 shares of Euromoney Institutional Investor, giving the position 0.02% weight in the equity portfolio. Shares averaged 12.84 pounds ($16.06) during the quarter.
The U.K.-based company operates information and media platforms like The Institutional Investor, BCA Research, Euromoney and Ned Davis Research Group. GuruFocus ranks the company’s profitability 8 out of 10 on several positive investing signs, which include a strong Piotroski F-score of 8 and operating margins that are outperforming 99.18% of global competitors.
CNH Industrial
The fund purchased 7,603,209 shares of CNH Industrial, increasing the stake 95.14%. Shares averaged $10 during the quarter; the transaction increased the equity portfolio 1.02%.
U.K.-based CNH Industrial operates several business segments, including agriculture equipment, construction equipment and commercial vehicles. GuruFocus ranks the company’s profitability 6 out of 10: Although it has a strong Piotroski F-score of 8, CNH Industrials’ net margin and return on assets are underperforming over 82% of global competitors.
Gurus with large holdings in CNH Industrial include Pioneer Investments (Trades, Portfolio) and 2019 Value Conference speaker Mario Gabelli (Trades, Portfolio).
Baidu
The fund purchased 577,720 shares of Baidu, increasing the holding 74.20% and the equity portfolio 0.89%. Shares averaged $142.43 during the quarter.
The Chinese search engine generates approximately 86% of revenue from online marketing services and the remainder in other segments, including artificial intelligence and autonomous cars. GuruFocus ranks Baidu’s profitability 8 out of 10: Even though the company’s Piotroski F-score ranks a weak 3 out of 9, it has consistent revenue growth and net profit margins that are outperforming 72.44% of global competitors.
Gurus with large holdings in Baidu include Sarah Ketterer (Trades, Portfolio) and Dodge & Cox.
Disclosure: No positions.
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