The Tweedy Browne Global Value Fund seeks long-term growth of capital by investing throughout the world in a diversified portfolio consisting primarily of non-U.S. marketable equity securities. Although, they note, investments in U.S. securities are permitted and will be made when opportunities in the U.S. appear more attractive. Investments are focused in developed markets, and where practicable, perceived foreign currency exposure is hedged back into the U.S. dollar. The fund is currently managed by the team of Tweedy Browne Partners.
As of the third quarter the Tweedy Browne Global Value Fund held 99 stocks, one of them a new buy, valued at around $6.849 billion. The following five stocks represent the fund’s top five holdings as of the close of the third quarter.
Roche Holding (XSWX:ROG)
Tweedy Browne (Trades, Portfolio)’s largest position is in the Swiss company Roche Holding. The fund holds on to 984,000 shares of the company’s stock representing 4.3% of their total portfolio and 0.12% of the company’s shares outstanding.
Tweedy Browne (Trades, Portfolio) did not alter their holdings in the company over the past quarter. The last move they made in Roche Holdings was in the fourth quarter of 2010. Since then the price per share is up 90.5%.
Tweedy Browne (Trades, Portfolio)’s historical holding history:
Roche Holding AG manufactures and develops pharmaceutical product. It produces drugs for cardiovascular, infectious, dermatology, autoimmune, and respiratory diseases. Roche Holding’s headquarters are located in Basel, Switzerland.
Roche Holding’s historical revenue and net income:
The analysis on the company reports that the revenue has been in decline over the past five years, the operating margin is expanding and that the price is sitting near a 5-year high.
The Peter Lynch Chart suggests that Roche is currently overvalued:
Roche Holding AG has a market cap of CHF228.15 billion. Its shares are currently trading at around CHF268.60 with a P/E ratio of 20.10, a P/S ratio of 4.81 and a P/B ratio of 10.58. The company had an annual average earnings growth of 11.1% over the past ten years.
Total SA (XPAR:FP)
The fund’s second largest holding is in Total SA where they maintain 4,520,000 shares of the company’s stock. Their position in the company makes up for 4.3% of their total portfolio as well as 0.19% of the company’s shares outstanding.
During the past quarter Tweedy Browne (Trades, Portfolio) did not alter their position. The fund last changed their position in the company in the first quarter of 2013, since then the price per share is trading up approximately 10.4%.
Tweedy Browne (Trades, Portfolio)’s historical holding history:
Total SA is an international oil and gas company in the world. With operations in more than 130 countries, the Company engages in all aspects of the petroleum industry, including upstream operations and downstream operations.
Total SA’s historical revenue and net income:
The analysis on Total SA reports that the company’s revenue has been in decline over the past year, its dividend is sitting near a 5-year low and its price is at a 5-year high. It also notes that the company has issued $3 billion of debt, but that overall its debt level is acceptable.
The Peter Lynch Chart shows that Total SA is currently undervalued:
Total SA has a market cap of €102.37 billion. Its shares are currently trading at around €42.94 with a P/E ratio of 10.80, a P/S ratio of 0.59 and a P/B ratio of 1.52. Total SA currently holds a 5.59% dividend yield. The company had an annual average earnings growth of 1.70% over the past ten years.
Novartis (XSWX:NOVN)
Tweedy Browne (Trades, Portfolio)’s third largest holding is in Novartis where they maintain 3,002,000 shares of the company’s stock. This position makes up for 4.1% of the fund’s total portfolio as well as for 0.12% of the company’s shares outstanding.
The fund has held the same position in the company since the first quarter of 2012. Since then the price per share has increased approximately 61.3%.
Tweedy Browne (Trades, Portfolio) Global Value’s historical holding history:
Novartis provides healthcare solutions that address the evolving needs of patients and societies worldwide with a portfolio that includes innovative medicines, preventive vaccines and diagnostic tools, generic pharmaceuticals and consumer health products. Novartis is a Switzerland-based company.
Novartis’ historical revenue and net income:
The analysis on Novartis reports that the company’s operating margin is expanding, the price is close to a 10-year high, the dividend yield is at a 5-year low and that the revenue has slowed down in the past year.
The Peter Lynch Chart suggests that the company is currently overvalued:
Novartis has a market cap of CHF200.89billion. Its shares are currently trading at around CHF82.80 with a P/E ratio of 23.50, a P/S ratio of 3.93 and a P/B ratio of 3.11. The company had an annual average earnings growth of 2.20% over the past ten years.
GuruFocus rated Novartis the business predictability rank of 2-star.
Standard Chartered PLC (LSE:STAN)
The guru fund’s fourth largest holding Standard Chartered is new to the fund’s top five holdings. The fund holds on to 14,612,000 shares of the company’s stock. This position makes up for 3.9% of the guru’s total assets managed as well as 0.59% of the company’s shares outstanding.
Over the past quarter the fund upped its stake in the company 39.42% by purchasing 4,131,365 shares. The portfolio managers added these shares near the estimated average quarterly price of ÂŁ12.16 per share. From this average price the price per share has dropped approximately -10.3%.
Tweedy Browne (Trades, Portfolio)’s historical holding history on Standard Chartered:
Standard Chartered PLC is the holding company for the Group. The company is an international bank with 1,700 branches and offices in 68 markets, predominantly in Asia, Africa and the Middle East. The group operates globally and is principally engaged in the business of retail and commercial banking.
Standard Chartered’s historical revenue and net income:
The analysis on Standard Chartered reports that the company’s revenue per share has been in decline over the past five years, it has issued $13.2 billion of debt over the past few years and it has a poor buyback track record. The analysis also notes that the company’s operating margin is expanding, it’s dividend yield is near a 10-year high and its P/E, P/B and P/S ratios are all near a 5-year low.
The Peter Lynch Chart suggests that the company is currently undervalued:
Standard Chartered has a market cap of £26.6 billion. Its shares are currently trading at around £10.91 with a P/E ratio of 10.90 and a P/S ratio of 2.53. The dividend of Standard’s stocks is at 4.76%, and the company had an annual average earnings growth of 8.10% over the past ten years.
Safran SA (XPAR:SAF)
The fund’s fifth largest holding is also new to the guru-rated fund’s top holdings. Tweedy Browne (Trades, Portfolio) Global holds on to a total of 3,934,340 shares of the company’s stock, representing 3.7% of the fund’s total portfolio and 0.95% of the company’s shares outstanding.
Over the past quarter the fund upped their holdings in Safran 53.99% by purchasing a total of 1,379,411 shares of the company’s stock. The portfolio managers added these shares near the estimated average quarterly price of €47.85 per share. Since then the price per share has dropped approximately -5.8%.
Tweedy’s historical holding history as of the third quarter:
Safran’s core businesses are aerospace, defence and security, manufacturing engines and equipment for air and space, defence electronics and security solutions. It has operations in Europe, the Americas, Africa and the Asia-Pacific region.
Safran’s historical revenue and net income:
The analysis on Safran reports that the company has issued €519 million over the past year in debt, its asset growth is faster than its revenue growth and its dividend yield is sitting near a 2-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Safran SA has a market cap of €18.76 billion. Its shares are currently trading at around €45.06 with a P/E ratio of 13.50 and a P/S ratio of 1.29. The dividend yield of the company’s stocks is at 2.49%, and over the past five years Safran had an annual average earnings growth of 19%.
Check out Tweedy Browne Global Value Fund’s complete third quarter portfolio here.
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