| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.31% | 6.69% | 8.84% |
Tweedy, Browne International Value Fund II returned 6.69% in Q2 2026, bringing year-to-date returns to 8.84%, though trailing the MSCI EAFE benchmark. The quarter saw a resumption of AI-inspired advances in US technology stocks following easing of US/Iran tensions. Samsung Electronics delivered record semiconductor profits while smaller caps broadened the rally. The manager expresses deep concern about rapidly rising valuations, with the Cape Shiller P/E at 41X and Buffett Indicator at 219% near all-time highs. Hyperscalers pour billions into AI capex with uncertain returns, creating a prisoner's dilemma dynamic. The Fed narrative flipped from rate cuts to potential hikes due to persistent inflation. New positions include Capgemini and bioMérieux, purchased at discounts to intrinsic value. The portfolio maintains growing exposure to smaller and mid-cap companies offering more attractive valuations than US tech giants. The fund is positioned defensively with underweights in overvalued segments, expecting to hold up better if markets correct while still participating if the rally continues. The manager draws parallels to the late 1990s tech bubble.
The fund pursues a disciplined value approach focused on non-US equities trading at discounts to conservative estimates of intrinsic value, with financial strength and growth runways, while maintaining significant underweights to overvalued segments like US mega-cap technology despite near-term performance headwinds.
The manager maintains a cautious stance despite strong absolute returns. While not suggesting investors abandon sensibly valued equities, the manager sees parallels to the period before the 2000 tech bubble, with technology companies trading at highly elevated valuations while the broader market, particularly non-US equities, remains reasonably valued. The funds are positioned to hold up better if concerns materialize and markets experience a correction, though they may lag if animal spirits continue to drive exuberant support for equity prices. The manager expects continued participation even without outperformance in a continued rally scenario.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 29 2026 | 2026 Q2 | 005930 KS, 4368.T, 6777.T, BA.L, CAP.PA, CCC.L, DHL.DE, HEIO.AS, IONS, KEMIRA.HE, NESN SW, NOVN SW, RHM.DE, ROG SW, RUI.PA, SAF.PA, TTE, U11.SI, WPK.TO | AI Concerns, financials, International Equities, semiconductors, small cap, technology, Valuations, Value Investing | - | Tweedy Browne International Value Fund II returned 6.69% in Q2 2026 but trails benchmarks year-to-date at 8.84%. The manager expresses serious concern about AI-driven valuation excesses, with key metrics at bubble-like levels and hyperscalers trapped in a capex prisoner's dilemma. The portfolio emphasizes smaller caps and non-US equities at attractive valuations while avoiding overpriced US tech, positioning defensively for potential market correction. |
| Jul 29 2026 | 2026 Q2 | 005930 KS, 086280 KS, 4368.T, 4401.T, BA.L, CCC.L, DGE.L, DHL.DE, HEIA.AS, KEMIRA.HE, NA.TO, NESN SW, NOVN SW, RHM.DE, ROG SW, RUI.PA, SAF.PA, TTE, U11.SI, WINPK | AI Bubble, Buybacks, Europe, inflation, international, small caps, Valuations, value | - | Tweedy Browne delivered strong absolute returns in Q2 2026 but warns of late-1990s bubble conditions as AI mania drives valuations to historic extremes. The manager actively avoids overvalued mega-cap tech, instead positioning in attractively valued European, Japanese, and smaller-cap companies. With CAPE at 41X and persistent inflation forcing Fed hawkishness, the portfolio is defensively positioned to outperform in a potential market correction while maintaining participation if enthusiasm persists. |
| Jun 1 2026 | 2026 Q1 | 005930 KS, 7267.T, AUTO.L, BA.L, BNZL.L, CNHI, DGE.L, NOVN SW, ROG SW, TTE | Buybacks, dividends, energy, Geopolitical, international, Portfolio Management, value | - | Tweedy, Browne's value-focused funds outperformed in Q1 2026 as energy and technology holdings drove returns while consumer discretionary lagged. Active portfolio management involved trimming positions near fair value and establishing new discounted opportunities. The manager remains optimistic about value equity leadership despite recent volatility, citing attractive non-US valuations and persistent macro headwinds for growth stocks. |
| Jun 1 2026 | 2026 Q1 | 005930 KS, AUTO.L, BA.L, BNZL.L, CNHI, DHL.DE, NESN SW, NOVN SW, ROG SW, RUI.PA, TTE, U11.SI | defense, energy, international, Pharmaceuticals, semiconductors, value | - | International Value Fund II gained 2.01% in Q1 2026, outperforming benchmarks through strong energy, semiconductor, and pharmaceutical holdings. TotalEnergies, Samsung Electronics, and Roche were key contributors amid geopolitical tensions. The fund trimmed appreciated positions and added new value opportunities while maintaining focus on attractively valued businesses trading at discounts to intrinsic value. |
| 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 | - | Tweedy Browne delivered strong absolute returns in 2025 led by pharmaceuticals and select technology holdings, while trimming overvalued defense positions. The firm warns of excessive market valuations driven by AI enthusiasm but remains positioned in undervalued international equities where significant valuation gaps persist versus US markets, emphasizing financially sound enterprises trading below intrinsic value. |
| Oct 31 2025 | 2025 Q3 | 003550.KS, 005930.KS, 145720.KS, 2531.T, 4368.T, 7270.T, 7276.T, 7716.T, 7988.T, AALB.AS, AZE.BR, BA.L, BIDU, BKG.L, BREE.L, BRK-A, CNHI, CRH.L, D05.SI, DGE.L, DHL.DE, FDX, GOOGL, HEIA.AS, INCH.L, IONS, J36.SI, JNJ, JSG.L, KOF, MEGACPO.MX, NA.TO, NESN.SW, NOVN.SW, NVST, PETS.L, PRU.L, ROG.SW, RUI.PA, SAF.PA, SOP.PA, SW.PA, TFC, TREL-B.ST, TTE, U11.SI, USB, VRTX, WFC, ZURN.SW | Currency, dividends, ETFs, Europe, Hedging, international, Japan, value | AZE | Tweedy Browne delivered positive absolute returns but lagged growth-favoring markets in Q3. Japanese exporters and select European holdings drove performance while industrial and consumer names faced headwinds. The firm maintains conviction in their value-driven, internationally-focused approach, believing funds are positioned to benefit from any rotation toward non-US equities or provide downside protection in challenging markets. |
| Aug 2 2025 | 2025 Q2 | 003550.KS, 086790.KS, BAES.L, CNH, D05.SI, DGE.L, DHL.DE, IONS, KOF, NESN.SW, NOVN.SW, PRU.L, RHM.DE, ROG.SW, SAF.PA, TP.PA, TREL-B.ST, TTE.PA, U11.SI, WFC | Banking, Currency, defense, Europe, international, Pharmaceuticals, small caps, value |
AZEG.BR 7716.T 7202.T |
Tweedy Browne delivered strong Q2 returns led by defense contractors and banks, with non-US equities significantly outperforming US markets. The fund continues finding compelling value in underappreciated small and mid-cap international companies, particularly in Europe where defense spending and accommodating monetary policy provide tailwinds despite elevated overall market valuations. |
| May 2 2025 | 2025 Q1 | 086280.KS, 2531.T, 4091.T, 7988.T, AKE.PA, BA.L, CCC.L, CNHI, DGE.L, DHL.DE, HEIA.AS, IONS, NESN.SW, NOVN.SW, PRU.L, RHM.DE, ROG.SW, SAF.PA, TTE, U11.SI | Currency, defense, Europe, international, tariffs, value | - | Tweedy Browne's International Value Fund II gained 8.48% in Q1 2025, outperforming benchmarks through disciplined value investing in non-U.S. markets. Defense and industrial holdings drove performance while Trump's tariff announcements created market volatility. The firm sees potential market inflection point but remains well positioned in international equities trading at attractive valuations. |
| Jan 21 2025 | 2024 Q4 | 3405.T, ATE.PA, BA.L, CNHI, D05.SI, DGE.L, DHL.DE, FMC, GOOGL, INCH.L, IONS, JNJ, KEMIRA.HE, NESN.SW, NVS, RHM.DE, ROG.SW, SAF.PA, TTE, UOB.SI, WPK.TO | financials, industrials, international, Japan, valuation, value | - | Tweedy Browne's value-focused international fund underperformed in Q4's tech-driven rally, declining 9.87%. Strong performance from Singapore banks and German defense offset weakness in chemicals and pharmaceuticals. The fund added Japanese industrials while maintaining disciplined valuation approach. Managers see elevated US tech valuations reminiscent of 2000 bubble, positioning for potential market inflection point. |
| Sep 30 2024 | 2024 Q3 | 003550.KS, AZO, BRK-B, CNHI, D05.SI, DGE.L, DPW.DE, FMC, GOOGL, INCH.L, IONS, JNJ, KEF1V.HE, NESN.SW, NOVN.SW, ROG.SW, SAF.PA, TEP.PA, U11.SI, WPK.TO | Currency, dividends, Europe, Hedging, international, Japan, value | - | Tweedy Browne International Value Fund II gained 4.78% in Q3 2024, benefiting from value rotation and emerging market strength. The fund added new positions in undervalued companies while maintaining focus on European equities. Despite solid performance, managers express caution about record-high market valuations and unprecedented debt levels, emphasizing the need for margin of safety. |
| Aug 2 2024 | 2024 Q2 | 000858.SZ, 0700.HK, 2357.PS, 3405.T, 4182.T, 601009.SS, 6277.T, 6302.T, 6849.T, AALB.AS, BAC, CNHI, D05.SI, DEO, FRE.DE, GOOGL, IONS, KEMIRA.HE, KOF, NVS, RHM.DE, ROG.SW, RUI.PA, SAF.PA, SCOR.PA, TEP.PA, U11.SI, UBI.PA, VRTX, WFC | Asia, Diversified, Europe, international, small cap, value | - | Tweedy Browne's value-focused approach faced headwinds in Q2's risk-on environment, returning -0.28%. Strong performance from communication services and healthcare was offset by beverage holdings. The fund continues building exposure to attractively valued small and mid-cap companies, particularly in Europe and Japan, while maintaining a cautious outlook given elevated market valuations and macro risks. |
| Apr 15 2024 | 2024 Q1 | AZO, BAE.L, BRK-A, CNH, D05.SI, DGE.L, DHL.DE, FMC, GOOGL, IONS, JNJ, NESN.SW, NOVN.SW, RHM.DE, ROG.SW, SAF.PA, SCR.PA, TREL-B.ST, TTE, U11.SI | Currency, defense, Diversified, industrials, international, value | - | Tweedy, Browne's International Value Fund II returned 3.65% in Q1 2024, driven by strong defense and industrial holdings but held back by healthcare disappointments and Teleperformance's AI-related decline. The firm maintains its disciplined value approach while expressing caution about elevated market valuations and geopolitical risks, finding comfort in portfolio diversification across quality smaller and mid-cap companies. |
| Feb 22 2024 | 2023 Q4 | 0010.HK, 1169.HK, 4324.T, 4401.T, 6297.T, 9147.T, AALB.AS, ALV.ST, ATE.PA, BA.L, BAC, BIDU, BNR.DE, DEO, DPW.DE, EPD, FMC, FRE.DE, IONS, KOF, KRA1V.HE, LAS.TO, NESN.SW, NVS, PGR, RNO.PA, ROG.SW, RTE.PA, SAF.PA, SEE, SOL.MI, TFC, TREL.ST, TTE, UBI.PA, UHAL, VRTX, WFC | industrials, inflation, international, Japan, rates, value | - | Tweedy, Browne's International Value Fund II gained 7.86% in Q4 2023, led by industrial and aerospace holdings while communication services and healthcare lagged. The managers continue finding value opportunities in smaller industrial companies and Japan, believing persistent inflation and higher rates create a favorable environment for their price-sensitive value approach. |
| Jan 11 2023 | 2023 Q3 | BA.L, BRK-B, CNHI, D05.SI, DEO, DHL.DE, FMS.DE, GOOGL, INP.L, IONS, JNJ, MEGACPO.MX, NESN.SW, NVS, RMS.PA, ROG.SW, SAF.PA, TREL-B.ST, TTE, U11.SI | Currency, Diversified, international, value | - | International value fund declined 2.55% in Q3 but outperformed MSCI EAFE benchmark. Strong contributions from TotalEnergies and European industrials offset weakness in chemicals and logistics names. Diversified 94-stock portfolio maintains value discipline across developed and emerging markets with full currency exposure. |
| Jul 31 2023 | 2023 Q2 | AAPL, AMZN, DEO, FMC, GOOGL, HEIN.AS, IONS, JNJ, META, MSFT, NRMG.DE, NVDA, NVS, RHHBY, SAF.PA, SCOR.PA, SKF-B.ST, TREL.ST, TSLA, VRTX | Currency, industrials, insurance, international, Pharmaceuticals, value | - | Tweedy Browne's International Value Fund II gained 0.73% in Q2, led by insurance and pharmaceutical holdings while industrial and beverage companies declined. The managers added new positions at attractive valuations and remain optimistic that persistent inflation and higher rates will create opportunities for disciplined value investors focused on financially strong companies with competitive advantages. |
| Apr 30 2023 | 2023 Q1 | 0179.HK, 3405.T, 4182.T, 4368.T, 6250.T, 6302.T, 7988.T, ALV.ST, BABA, BAC, BIDU, BRE.DE, CCC.L, CSCO, D05.SI, FDX, FRE.DE, GOOGL, HUSQ-B.ST, IONS, JNJ, KBC.BR, MEGACPO.MX, ROG.SW, SKF, TFC, TREL.ST, TTE, TXGN.SW, U11.SI, USB, VRTX, WFC | Banking, diversification, energy, international, Non-US, value | - | Tweedy, Browne International Value Fund II gained 6.44% in Q1 2023, led by Swedish industrials and Chinese reopening beneficiaries. Banking crisis headwinds affected financial holdings while new positions were added in specialty chemicals and technology at attractive valuations. Managers believe a capital markets reset favors their value-oriented, non-US focused approach over passive growth strategies. |
| Jan 2 2023 | 2022 Q4 | - | - | - | |
| Nov 14 2022 | 2022 Q3 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIThe manager expresses deep concern about AI-related valuations and capital expenditure dynamics. Hyperscalers are pouring billions into AI compute with uncertain returns, creating a prisoner's dilemma where each fears moderating spending. The manager questions whether this capex will yield attractive economic returns or result in a winner-take-all scenario, and notes these companies fail to meet their valuation criteria. |
AI Hyperscalers Capex Valuations Technology |
SemiconductorsSamsung Electronics was a standout performer with record-breaking operating profits driven by strong semiconductor demand. The fund maintains exposure to semiconductor equipment producers like Santec Holdings, which benefited from continued investor enthusiasm surrounding AI infrastructure investment. Technology hardware was among the leading industries for the quarter. |
Semiconductors Samsung Memory Technology Hardware | |
ValuationsThe manager expresses increasing concern about rapidly rising equity valuations, particularly in US technology stocks. Key market indicators like the Cape Shiller P/E at 41X and Buffett Indicator at 219% are trading at or near all-time highs. The manager draws parallels to the late 1990s tech bubble, noting the over-arching enthusiasm about AI has unleashed animal spirits reminiscent of that period. |
Valuations Bubble Cape Shiller Buffett Indicator | |
FinancialsFinancial institutions involved in financing AI capital expenditure participated in the advance. The sector benefited from improving fundamentals, particularly in Europe and Japan, where several banks were among the quarter's strongest performers. United Overseas Bank, National Bank of Canada, and Hana Financial were top contributors, though the fund maintains an underweight position in European banks due to financial strength concerns. |
Banks Financials Europe Japan | |
EnergyEnergy holdings contributed negatively as optimism around the cease-fire in the US/Iran conflict led to a decline in oil prices. Oil transport began moving again in fits and starts in the Strait of Hormuz, which helped alleviate concerns about spiking oil prices. TotalEnergies was a top detractor for the quarter. |
Oil Energy Geopolitics Iran | |
Small CapsThe manager was heartened to see the market advance broaden well beyond the Magnificent Seven to include smaller capitalization companies. The funds have growing exposure to smaller and mid-cap companies, which offer much more attractive valuations than US tech giants. This positioning reflects the manager's view that smaller companies provide better relative value opportunities. |
Small Cap Mid Cap Valuations Diversification | |
InflationThe manager expresses concern about stubbornly persistent inflation and rising interest rates. The Fed narrative recently flipped from possible rate cuts to possible rate hikes due to elevated inflation. This represents a key risk to the market outlook and contributes to the manager's cautious stance on valuations. |
Inflation Interest Rates Fed Monetary Policy | |
BuybacksThe Buybacks Dividends + Value Fund strategy was modestly adjusted to emphasize companies that pay attractive dividends and/or have initiated buybacks when shares trade at discounts to value. The manager views insider buying and corporate buybacks as valuable signals of undervaluation and prospects for stronger relative returns. Several new positions were established in companies with active buyback programs. |
Buybacks Shareholder Yield Capital Allocation Value | |
| 2026 Q2 |
AIThe manager expresses deep concern about AI-driven valuations, comparing current market conditions to the late 1990s tech bubble. Hyperscalers are pouring billions of free cash flow into AI compute infrastructure with uncertain returns. The manager views AI-related companies as failing to meet rigorous valuation criteria and places them in the 'too hard file.' They explicitly warn about circular dynamics and question when AI investments will translate to earnings. |
Hyperscalers Infrastructure Valuations Bubble Capex |
SemiconductorsSamsung Electronics was a standout performer with record-breaking operating profits driven by strong semiconductor demand. The fund maintains exposure to semiconductor hardware but remains cautious about broader AI infrastructure valuations. Semiconductor cycle strength contributed positively to portfolio returns in Q2 2026. |
Samsung Memory Demand Hardware | |
FinancialsEuropean and Japanese banks participated in the quarter's advance with improving fundamentals. However, the manager has typically avoided banks that are not financially strong, resulting in significant underweight positions in European banks that have weighed on relative performance. The underweight in Financials detracted from returns despite sector strength. |
Banks Europe Japan Underweight | |
BuybacksThe Buybacks, Dividends + Value Fund was renamed and its strategy adjusted to emphasize companies engaged in share buybacks when trading at discounts to intrinsic value. Proprietary research shows a return advantage for stocks with buybacks at significant discounts. The fund established multiple new positions in companies with active buyback programs including Autotrader, Berkeley Group, and Krafton. |
Shareholder yield Undervaluation Capital allocation | |
ValuationsThe manager expresses increasing concern about rapidly rising equity valuations despite persistent inflation and rising interest rates. Key market indicators including the 41X CAPE Shiller P/E and 219% Buffett Indicator are trading at or near all-time highs. The manager warns that animal spirits and enthusiasm for AI have unleashed conditions reminiscent of the late 1990s bubble. |
CAPE Buffett Indicator Bubble Overvaluation | |
ValueThe manager continues to find opportunities in non-US markets and smaller/mid-cap companies trading at attractive valuations relative to US mega-cap technology. New positions were established in Capgemini and bioMérieux at discounts to conservative intrinsic value estimates. The funds remain positioned in financially strong companies with runways for growth that meet rigorous valuation criteria. |
Intrinsic value Discount Small caps Europe | |
InflationThe manager highlights stubbornly persistent inflation as a key concern. The Fed narrative recently flipped from possible rate cuts to possible rate hikes due to elevated inflation. Rising inflation and interest rates are occurring alongside rapidly rising equity valuations, creating a concerning backdrop for markets. |
Rates Fed Persistent | |
EnergyEnergy holdings contributed negatively as optimism around the cease-fire in the US/Iran conflict led to a decline in oil prices. Oil transport resumed in fits and starts in the Strait of Hormuz, alleviating concerns about spiking oil prices. TotalEnergies was a top detractor during the quarter. The fund trimmed or liquidated some energy-related positions. |
Oil Geopolitics Iran TotalEnergies | |
| 2026 Q1 |
EnergyOil and gas holdings, particularly TotalEnergies, provided meaningful tailwinds during the quarter amid geopolitical tensions and oil supply disruptions. The fund benefited from strength in energy positions as oil prices spiked in March due to Iranian conflict. |
Oil Gas TotalEnergies Energy Geopolitical |
ValueThe fund continues to focus on attractively valued businesses trading at significant discounts to intrinsic value. Portfolio activity involved trimming positions where valuation gaps had narrowed and reallocating to more compelling opportunities. |
Value Intrinsic Value Discount Undervalued | |
SemiconductorsSemiconductor-related holdings such as Samsung Electronics contributed positively to returns during the quarter. The fund maintains exposure to technology hardware companies that demonstrated strong performance. |
Semiconductors Samsung Technology Hardware | |
PharmaceuticalsLarge pharmaceutical holdings including Roche and Novartis were among significant contributors to returns. The fund maintains meaningful exposure to established pharmaceutical companies with strong competitive positions. |
Pharmaceuticals Roche Novartis Healthcare | |
DefenseDefense holdings such as BAE Systems were notable contributors, reflecting durable competitive positions and increasing demand in the defense sector amid heightened geopolitical tensions. |
Defense BAE Systems Aerospace Military | |
| 2025 Q4 |
PharmaceuticalsHealth 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. |
Pharmaceuticals Biotechnology Healthcare |
ValueThe fund continues to focus on financially sound enterprises purchased at attractive valuations. Despite high market valuations, the gap between US and non-US equities remains significant and should serve the fund well given its non-US-centric posture. |
Value Valuation International | |
Defense SpendingDefense-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, share prices have moved ahead of fundamentals and positions have been trimmed. |
Defense Military Aerospace | |
AIMarket enthusiasm is attributed partly to excitement around artificial intelligence and its ability to dramatically impact productivity. However, the managers note that even the most profound technological revolutions aren't one-way streets to prosperity. |
AI Technology Productivity | |
| 2025 Q3 |
ValueThe firm emphasizes investing in companies that combine financial strength, reasonable valuations, and capacity to weather uncertain times. They focus on businesses trading at discounts to conservative estimates of underlying intrinsic value. The valuation gap between US and non-US equities remains significant despite recent outperformance. |
Valuation Intrinsic Value Discount Price Multiple |
DividendsThe Worldwide High Dividend Yield Value Fund focuses on companies with competitive advantages that support resilient cash generation and attractive shareholder yields through above average dividends and share buybacks. The fund maintains a 4.17% average-weighted dividend yield on fund stocks alone. |
Dividend Yield Cash Generation Shareholder Yield Income | |
EuropeEuropean equities have performed well in US dollars, with the firm maintaining an overweight to European equities as valuations were typically more compelling. They believe prospects for robust defense and infrastructure spending in Europe may be contributing to the resurgence. |
European Equities Defense Spending Infrastructure Valuation Gap | |
JapanJapan was among the stronger markets for the portfolios with companies like Subaru, Koito Manufacturing, Fuso Chemical, Nifco, and Takara Holdings contributing positively. The environment in Japan has been improving and corporate behavior continues to move in a more shareholder-friendly direction. |
Japanese Equities Shareholder Friendly Corporate Behavior Exporters | |
| 2025 Q2 |
Defense SpendingPerformance was driven by aerospace and defense companies including BAE Systems, Rheinmetall, and Safran, benefiting from ongoing geopolitical tensions and robust demand for defense spending. These companies continue to see increased order flow and strong fundamentals amid global security concerns. |
Defense Aerospace Geopolitical Security Military |
ValueThe fund continues to find companies that are underappreciated by the broader market but offer compelling value and sound fundamentals, particularly in small and mid-cap businesses trading at attractive valuations. Portfolio activity is guided by price and value with the goal of improving overall quality and return potential. |
Undervalued Discounts Intrinsic Value Fundamentals Quality | |
Small CapsThe best returns during the quarter came from investments in small and mid-cap businesses with market capitalizations between $2 billion and $10 billion, where the fund continues to find underappreciated companies with compelling value and sound fundamentals. |
Small Cap Mid Cap SMID Underappreciated Opportunity | |
| 2025 Q1 |
ValueTweedy Browne maintains disciplined deep value approach, seeking securities trading at meaningful discounts to conservative estimates of intrinsic value. The firm remains particularly cautious given elevated valuation multiples and speculative enthusiasm in certain market segments. |
Intrinsic Value Discounts Conservative |
DefenseDefense sector showed continued strength with BAE Systems and Rheinmetall advancing sharply on robust demand. The aerospace and defense industry was among the leading performers during the quarter. |
BAE Systems Rheinmetall Robust Demand | |
Trade PolicyPresident Trump's announcement of sweeping new tariff measures reignited concerns about global trade frictions and economic growth. The market reaction reflects uncertainty around tariff imposition and their potential impact on prices and economic growth. |
Tariffs Trade Frictions Economic Growth | |
| 2024 Q4 |
ValueThe fund maintains its value investing approach, seeking securities trading at significant discounts to intrinsic value estimates. The manager notes their rigorous valuation requirements have kept them out of dominant technology companies that have driven market returns. |
Intrinsic Value Valuation Discount Value Investing Undervalued |
JapanThe fund added two new Japanese industrial companies and remains optimistic about Japan given positive governance and valuation initiatives. Japanese corporations face pressure from exchanges and government to improve corporate valuations and returns. |
Japanese Equities Corporate Governance Valuation Reform Industrial Companies Small Cap | |
| 2024 Q3 |
ValueThe fund continues to focus on securities trading at discounts from conservative estimates of their respective intrinsic values. Portfolio positioning reflects areas where investors may still uncover undervalued securities. The managers emphasize their value investing approach throughout the commentary. |
Intrinsic Value Undervalued Discounts Conservative Estimates Value Investing |
DividendsThe Worldwide High Dividend Yield Value Fund is specifically mentioned as producing the best absolute returns. The fund focuses on higher dividend income and quality characteristics. Average-weighted dividend yield on fund stocks is 3.80% versus 1.76% for the MSCI World Index. |
Dividend Yield Dividend Income High Dividend Yield Income | |
| 2024 Q2 |
ValueThe fund continues to focus on price-sensitive investing, seeking attractive entry points relative to conservative estimates of intrinsic value. Small and mid-capitalization equities represent an increasing component of portfolios, trading at historically low valuations compared to larger counterparts. |
Valuation Intrinsic Value Small Cap Mid Cap Price Sensitive |
DividendsThe fund maintains exposure to dividend-paying companies across various sectors. Holdings include companies with strong dividend profiles, particularly in the financial and industrial segments. |
Dividend Yield Income Distribution Payout Yield | |
| 2024 Q1 |
DefenseAerospace & defense businesses led results during the quarter, driven primarily by BAE Systems, Safran, and Rheinmetall AG. These companies benefited from increased defense spending and strong performance in the defense sector. |
Defense Spending Aerospace Defense Electronics |
IndustrialsThe Funds had considerable exposure to industrial and materials stocks during the quarter. Machinery holdings performed well, with contributions from Sumitomo Heavy Industries, Trelleborg, and Aalberts. |
Industrial Machinery Automation Industrial Services | |
ValueThe firm continues its bottom-up, stock-by-stock value investing process, focusing on companies purchased at significant discounts from estimates of their underlying intrinsic values with strong balance sheets and attractive growth runways. |
Value Quality Growth | |
| 2023 Q4 |
ValueThe fund continues to focus on companies purchased at significant discounts to intrinsic value estimates. The managers believe they are in the midst of a material shift in markets driven by persistent inflation and interest rates, where price matters again and they are highly optimistic about price-sensitive strategies like theirs. |
Intrinsic Value Discount Price Sensitive Undervalued Attractive Value |
IndustrialsThe fund has been uncovering new opportunities particularly in smaller and medium capitalization industrial companies. Industrial segments including aerospace & defense, machinery, and chemicals were among the leading contributors to returns during the quarter. |
Industrial Companies Aerospace Defense Machinery Chemicals | |
JapanThe Japanese component of the fund portfolios has been increasing over the last couple of years as real change seems to be afoot in Japan. The managers see this as part of their broader opportunity set expansion. |
Japanese Companies Japan Exposure Real Change Portfolio Component | |
| 2023 Q2 |
ValueThe fund continues to focus on companies purchased at significant discounts from estimates of their underlying intrinsic values. New positions were established in companies that were financially strong and had attractive runways for potential future growth, all purchased at prices representing significant discounts from intrinsic value estimates. |
Intrinsic Value Discount Undervalued Price Sensitivity Financial Strength |
PharmaceuticalsPharmaceutical holdings were among the leading contributors to fund performance during the quarter. Companies like Ionis Pharma and Vertex continue to impress investors with their innovative biotech drug pipelines, while Johnson and Johnson, Novartis and Roche had strong returns. |
Drug Pipelines Biotech Innovation Healthcare Pharmaceuticals | |
InsuranceInsurance companies were top performers during the quarter. SCOR, the French reinsurer, benefited from new management hiring and a hardening of prices in the reinsurance market. The sector was among the leading industries contributing to fund returns. |
Reinsurance Premium Pricing Management Changes Hardening Market Financial Services | |
| 2023 Q1 |
ValueThe fund emphasizes trading at significant discounts to intrinsic value estimates. Portfolio holdings generally trade at reasonably attractive weighted average valuation multiples. Owner earnings yields for new buys typically around 7-8% or higher. |
Intrinsic Value Valuation Discounts Earnings Yield Price Matters |
DividendsThe fund maintains focus on dividend-paying companies with sustainable yields. Portfolio includes companies with attractive dividend characteristics and quality screens for sustainable dividend payments. |
Dividend Yield Sustainable Income Quality |
| 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 |
| Jul 1, 2025 | Fund Letters | Tweedy, Browne International Value II | AZEG.BR | Azelis Group | Materials | Specialty Chemicals | Bull | Euronext Brussels | asset-light, Belgium, compounder, Distributor, materials, specialty chemicals, Value | Login |
| Jul 1, 2025 | Fund Letters | Tweedy, Browne International Value II | 7716.T | Nakanishi Inc. | Health Care | Health Care Equipment | Bull | Tokyo Stock Exchange | Dental Equipment, Global, healthcare, Japan, Medical devices, niche market, Value | Login |
| Jul 1, 2025 | Fund Letters | Tweedy, Browne International Value II | 7202.T | Isuzu Motors | Consumer Discretionary | Automobile Manufacturers | Bull | Tokyo Stock Exchange | automotive, commercial vehicles, dividend, Japan, Southeast Asia, trucks, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| 005930.KS | Samsung Electronics was again a standout performer, as strong demand for semi-conductors led to record-breaking operating profits. |
| 6777.T | Santec Holdings, a relatively new holding in the international funds that produces optical equipment, benefited from continued investor enthusiasm surrounding AI infrastructure investment. |
| DHL.DE | DHL Group was among the more significant contributors and among the leading industries in air freight & logistics. |
| 4368.T | Fuso Chemical was among the top contributors. We took advantage of strength in the chemicals industry by trimming or liquidating the Funds' position in Fuso Chemical. |
| CCC.L | Computacenter was among the top contributors. The Funds' holdings in the UK also contributed positively in local currency terms, led by Computacenter. |
| KEMIRA.HE | Kemira was a top detractor, a water treatment company, which declined due to increasing costs and inflation pressure. |
| TTE | TotalEnergies was a top detractor. Energy holdings contributed negatively as optimism around the cease-fire in the US/Iran conflict led to a decline in oil prices. |
| RUI.PA | Rubis was among the top detractors. Gas utilities such as Rubis detracted from performance. |
| RHM.DE | Rheinmetall was among the top detractors. Defense companies Rheinmetall and BAE Systems detracted as well. |
| BA.L | BAE Systems was among the top detractors. Defense companies Rheinmetall and BAE Systems detracted as well. |
| CAP.PA | Capgemini was among the top detractors. Among the new positions established during the quarter were Capgemini, the French business and information technology consultant. At purchase, we believed these two companies were trading at a discount to a conservative estimate of their intrinsic value, were financially strong, and had runways for future growth. |
| U11.SI | United Overseas Bank was among the top contributors. Banks including Singapore based United Overseas Bank, National Bank of Canada, and Korea based Hana Financial were among the top contributors. |
| NESN.SW | Nestlé was a solid contributor on an absolute and relative basis. Several portfolio holdings which had reached or neared our estimate of intrinsic value were trimmed, including Nestle. |
| ROG.SW | Several portfolio holdings which had reached or neared our estimate of intrinsic value were trimmed, including Roche. |
| NOVN.SW | Several portfolio holdings which had reached or neared our estimate of intrinsic value were trimmed, including Novartis. |
| SAF.PA | Safran was among the more significant contributors. Many of the Fund's Consumer Staples holdings were solid contributors. |
| HEIO.AS | Heineken was a solid contributor on an absolute and relative basis. Beverage holdings, including Heineken and Diageo were among the top contributors. |
| IONS | Ionis Pharmaceuticals is held in the portfolio as one of the top 20 equity holdings. |
| WPK.TO | Winpak was among the detracting industries in containers & packaging companies. |
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