| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 5.96% | 2.78% | 26.59% |
Tweedy Browne's funds delivered strong absolute returns in Q4 2025, with calendar year results ranging from 21.56% to 26.59%, though only the Value Fund outperformed its primary benchmark. The firm's health care holdings, including Roche, Novartis, and Ionis Pharmaceuticals, contributed meaningfully through new drug approvals and steady earnings growth. Technology holdings like Samsung Electronics and Alphabet also performed well despite elevated valuations. Defense-related positions such as BAE Systems and Rheinmetall retreated after strong year-to-date performance as valuations moved ahead of fundamentals. Portfolio activity included building a new position in Sysmex Corporation and adding to undervalued holdings like CNH Industrial and Sodexo. The firm expresses concern about excessive market valuations, particularly in US equities, while noting that artificial intelligence excitement may be driving new era thinking similar to the internet boom. Despite macro headwinds including tariffs, geopolitical conflicts, and persistent inflation, Tweedy Browne remains positioned in well-capitalized, competitively advantaged companies purchased at attractive valuations, particularly emphasizing non-US markets where valuation gaps persist.
Tweedy Browne maintains a value-oriented approach focused on financially sound enterprises in markets where stock prices are collateralized by underlying intrinsic value, particularly emphasizing non-US equities where valuation gaps remain significant compared to US markets.
The firm takes comfort in knowing that their Funds remain well positioned in what they believe to be financially sound enterprises in parts of the world where company stock prices are more than collateralized by underlying intrinsic value. They believe a diversified portfolio of well-capitalized, competitively advantaged companies purchased at attractive valuations offers the best defense against market uncertainty and resultant volatility.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 11 2026 | 2025 Q4 | 005930.KS, 6869.T, 7958.T, BA.L, CNHI, CVSG.L, DHL.DE, GOOGL, HEIA.AS, IONS, JSG.L, NESN.SW, NOVN.SW, PRU.L, ROG.SW, RWM.DE, SAF.PA, SW.PA, TTE, U11.SI | Asia, defense, Europe, Hedging, international, Pharmaceuticals, value | - | Health care holdings including pharmaceutical and biotechnology companies added meaningfully to returns. Holdings such as Roche, Novartis, and Ionis Pharmaceuticals benefited from new drug approvals, steady and growing earnings, and business models that continue to generate cash through a wide range of economic conditions. Defense-related holdings such as BAE Systems and Rheinmetall had been standout performers for much of the year but fell back in Q4. While these businesses benefit from secular growth in defense spending around the world, share prices have moved ahead of underlying fundamentals. The firm continues to focus on financially sound enterprises in parts of the world where company stock prices are more than collateralized by underlying intrinsic value. They believe a diversified portfolio of well-capitalized, competitively advantaged companies purchased at attractive valuations offers the best defense against market uncertainty. |
| Oct 31 2025 | 2025 Q3 | - | international, Japan, value | AZE | International: Year-to-date leadership from non-US equitiesespecially Europeamid a weaker US dollar shaped returns in this unhedged strategy. Value: Activity favored companies trading below intrinsic worth, adding select cyclicals and trimming names nearing fair value. Japan: Shareholder-friendly reforms and a weaker yen aided exporters and supported several holdings. |
| Aug 2 2025 | 2025 Q2 | - | Currency, dollar weakness, FX exposure, Hedging, international | - | The letter focuses on the impact of currency exposure on international equity returns, contrasting hedged and unhedged strategies. Management underscores how U.S. dollar weakness amplified local-market gains for unhedged portfolios. Currency is framed as a meaningful but unpredictable driver that can materially affect realized returns. |
| May 2 2025 | 2025 Q1 | - | - | - | |
| Jan 21 2025 | 2024 Q4 | - | - | - | |
| Sep 30 2024 | 2024 Q3 | - | - | - | |
| Aug 2 2024 | 2024 Q2 | - | - | - | |
| Apr 15 2024 | 2024 Q1 | - | - | - | |
| Feb 22 2024 | 2023 Q4 | - | - | - | |
| Jan 11 2023 | 2023 Q3 | - | - | - | |
| Jul 31 2023 | 2023 Q2 | - | - | - | |
| Apr 30 2023 | 2023 Q1 | - | - | - | |
| Jan 2 2023 | 2022 Q4 | - | - | - | |
| Nov 14 2022 | 2022 Q3 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DefenseThe team initiated a position in Curtiss-Wright, believing the company is entering a period where multiple near-term growth drivers are converging, including rising defense budgets, commercial aerospace production ramps, nuclear power plant life extensions and new builds, and submarine production. |
Defense Budgets Aerospace Nuclear Submarines |
PharmaceuticalsEli Lilly represents a high-quality growth franchise in global healthcare, with leadership in diabetes, obesity, and neuroscience providing durable competitive advantages. The company's GLP-1 treatments continue to see demand outpace supply with additional indications on the horizon. |
Pharmaceuticals GLP1 Diabetes Obesity Healthcare | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
JapanJapan offers tremendous value opportunities with one-third of companies trading below book value. Corporate governance reforms, record shareholder returns, and structural changes like unwinding cross-holdings are unlocking value. The investment opportunity is in early innings and could last several years. |
Corporate Governance Value Reforms Shareholder Returns Cross Holdings |
| 2025 Q2 |
Currency |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 31, 2025 | Fund Letters | Jay Hill | AZE | Azelis Group N.V. | Health Care | Specialty Chemicals Distribution | Bull | Shanghai Stock Exchange | balance sheet, Distribution, growth, M&A, resilience, Scalability, specialty chemicals | Login |
| TICKER | COMMENTARY |
|---|---|
| 005930.KS | Top gainers included Samsung (+38% in U.S. dollar terms) |
| 6869.T | We did begin building a position in a new holding, Sysmex Corporation, a global leader in diagnostic equipment, with a large installed base and recurring revenue characteristics that we believe support long-term value creation. |
| BA.L | The top three contributors to this underperformance came from BAE Systems (British Defense) |
| CNHI | CNH Industrial detracted across the Funds, reflecting investors' continued concerns about the downturn of the Ag cycle and its impact on end-market demand. CNH remains significantly undervalued in our view, and we are adding to our position opportunistically. We took advantage of a pricing opportunity and added to CNH Industrial, which is now a top 10 holding in all four funds. |
| CVSG.L | We also continued to build the position in the veterinary services provider CVS, where we see attractive opportunities driven by the technical overhang as the shares move to from AIM listing to the main market. |
| DHL.DE | DHL Group reported quarterly results that beat profit expectations (despite a slight revenue dip), driven by cost efficiencies and e-commerce growth. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| HEIA.AS | Heineken (+8%) |
| IONS | Holdings such as Roche, Novartis, and Ionis Pharmaceuticals benefited from new drug approvals, steady and growing earnings, and business models that continue to generate cash through a wide range of economic conditions. |
| NESN.SW | We see now as an opportune time to own a company that possesses world-leading brands in consumer categories we believe have a favourable growth outlook in the long run. Nestlé's comprehensive pricing architecture through umbrella brands Nescafé and Nespresso means the portfolio should be well-positioned to capture spending shifts up and down the price ladder. In pet foods, Nestlé also possesses category leaders in its Purina line. We see both coffee and pet care as attractive categories that are more experiential and less commoditised relative to other staples. Over recent quarters, Nestlé was able to deliver positive volume growth in coffee despite pushing through high-single-digit percentage price increases. Scale matters as Nestlé is the world's largest provider of packaged coffee and among the top pet food producers globally. |
| NOVN.SW | Holdings such as Roche, Novartis, and Ionis Pharmaceuticals benefited from new drug approvals, steady and growing earnings, and business models that continue to generate cash through a wide range of economic conditions. We also trimmed several larger holdings, including Roche, Novartis, Safran, and TotalEnergies, whose stock prices had approached underlying intrinsic value. |
| PRU.L | tangible signs of fundamental and governance improvement in some of our deeply out-of-favour Asian consumer companies like Prudential |
| ROG.SW | Top gainers among the Fund's holdings included Roche (+27%) |
| RWM.DE | Defense-related holdings such as BAE Systems and Rheinmetall, which had been standout performers for much of the year, fell back a bit in the 4th Quarter. While these businesses currently benefit from secular growth in defense spending around the world, share prices have moved ahead of underlying fundamentals, and we have been modestly trimming our positions over the past few quarters. |
| SAF.PA | Safran, buoyed by robust aerospace and aftermarket parts demand, reported record profits for the prior year in early 2025. As global air traffic continued to recover and air carriers ramped up maintenance projects, the company saw stronger aftermarket growth and converted operational efficiency gains into higher earnings, prompting management to raise full-year guidance for 2025. |
| SW.PA | We added to our position in Sodexo, the French food services and facilities-management company we began buying in the third quarter. The purchases were made at prices we believe are still attractive, and Sodexo is now a significant position in all four funds. |
| TTE | Global oil & gas producer and distributor and low carbon electricity supplier |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
