The Tweedy Browne Global Value Fund, part of New York-based investment firm Tweedy Browne (Trades, Portfolio) Co. LLC, released its fourth-quarter 2017 portfolio this week, listing three new holdings.
Fund managers William Browne, Thomas Shrager, John Spears and Robert Wyckoff invest primarily in undervalued companies around the world in order to achieve long-term growth of capital. The portfolio of 96 holdings is largely composed of stocks in the financial services, consumer defensive and consumer cyclical sectors.
According to GuruFocus data, the fund underperformed the S&P 500 in 2016 with a return of 5.62%.
In its largest trade of the quarter, the Global Value Fund invested in 8.8 million shares of WPP for an average price of 13.34 pounds ($18.06) per share, giving it 1.77% portfolio space.
The London-based advertising and public relations company has a market cap of 16.82 billion pounds; its shares were trading around 13.24 pounds on Thursday with a price-earnings (P/E) ratio of 9.73, a price-book (P/B) ratio of 1.88 and a price-sales (P/S) ratio of 1.20.
The Peter Lynch chart below indicates the stock is undervalued as it is trading below its fair value.
GuruFocus ranked WPP’s financial strength 5 of 10 and its profitability and growth 8 of 10. The company’s trailing dividend yield is 4.50% and its forward dividend yield is 3.42%. The dividend payout ratio is 42%.
Of the gurus invested in WPP, David Herro (Trades, Portfolio) has the largest position with 3.65% of outstanding shares. Steven Romick (Trades, Portfolio), Charles de Vaulx (Trades, Portfolio) and the IVA International Fund (Trades, Portfolio) also own the stock.
The fund purchased 16.04 million shares of Vertu for an average price of 0.47 pounds per share, expanding the portfolio 0.12%.
The British car dealership has a market cap of 188.37 million pounds; its shares were trading around 0.49 euros on Thursday with a P/E ratio of 7.03, a P/B ratio of 0.74 and a P/S ratio of 0.07.
According to the Peter Lynch chart below, the stock is undervalued as it is trading below its fair value.
GuruFocus ranked Vertu’s financial strength 7 of 10 and its profitability and growth 6 of 10. The company’s trailing dividend yield and forward dividend yield are both 2.99%. The payout ratio is 20%.
Holding 4.14% of outstanding shares, the fund is the company’s only guru investor.
The fund’s smallest buy of the quarter was 170,885 shares of Inchcape, paying an average price of 7.8 pounds per share. The trade had an impact of 0.02% on the portfolio.
The British retailer of luxury vehicles has a market cap of 3.21 billion pounds; its shares were trading around 7.75 pounds on Thursday with a P/E ratio of 16.14, a P/B ratio of 2.45 and a P/S ratio of 0.44.
Based on the Peter Lynch chart below, the stock appears to be trading close to its fair value.
GuruFocus ranked Inchcape’s financial strength 6 of 10 and its profitability and growth 7 of 10. The company’s trailing dividend yield and forward dividend yield are both 3.16%. The payout ratio is 50%.
The fund is the company’s sole guru shareholder with 0.04% of outstanding shares.
View the fund’s current portfolio here.
(Disclosure: I do not own any stocks mentioned.)
About the author:
I am an editorial assistant at GuruFocus. I have a BA in journalism and an MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneeg