U.S. Markets closed
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • Dow 30

    34,200.67
    +164.68 (+0.48%)
     
  • Nasdaq

    14,052.34
    +13.58 (+0.10%)
     
  • Russell 2000

    2,262.67
    +5.60 (+0.25%)
     
  • Crude Oil

    63.07
    -0.39 (-0.61%)
     
  • Gold

    1,777.30
    +10.50 (+0.59%)
     
  • Silver

    26.04
    +0.08 (+0.29%)
     
  • EUR/USD

    1.1980
    +0.0004 (+0.0359%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • Vix

    16.25
    -0.32 (-1.93%)
     
  • GBP/USD

    1.3840
    +0.0056 (+0.4069%)
     
  • USD/JPY

    108.7830
    +0.0670 (+0.0616%)
     
  • BTC-USD

    60,971.86
    -877.69 (-1.42%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

Tweedy Browne's Top 4 Sells of the 4th Quarter

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
GuruFocus.com
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The Tweedy Browne (Trades, Portfolio) Global Value Fund disclosed this week that its top four sells during fourth-quarter 2019 were Axel Springer SE (XTER:SPR), Safran SA (XPAR:SAF), HSBC Holdings PLC (LSE:HSBA) and SINA Corp. (NASDAQ:SINA).


The fund seeks long-term capital appreciation through a Benjamin Graham-like approach, investing primarily in non-U.S. securities that are trading below intrinsic value. The fund mostly invests in developed markets with some exposure to emerging markets.

0de08fcff3644e86c706a86353bf7e4b.png
0de08fcff3644e86c706a86353bf7e4b.png

As of quarter-end, the fund's $7.01 billion equity portfolio contains 79 stocks, with just one new holding for the quarter. The top three sectors in terms of weight are financial services, consumer defensive and industrials, with weights of 25.94%, 21.41% and 13.73%.

ef6728bc6e831b63bafc26594aababf5.png
ef6728bc6e831b63bafc26594aababf5.png

Axel Springer

The fund sold 3,511,394 shares of Axel Springer, reducing the equity portfolio 3.47%. Shares averaged 63.33 euros ($70.53) during the quarter.

e04ddd833c75ecf796d5e85b16667b7a.png
e04ddd833c75ecf796d5e85b16667b7a.png

The German publisher operates a wide range of newspapers and tabloid magazines, including Bild and Business Insider. GuruFocus ranks Axel Springer's profitability 7 out of 10 on several positive investing signs, which include a good Piotroski F-score of 6 and operating margins that outperform 70.88% of global competitors.

6054bbbf8325ac7fb280fb70ae5e533c.png
6054bbbf8325ac7fb280fb70ae5e533c.png

Despite strong profitability, Axel Springer's valuation ranks 2 out of 10 as price-book and price-sales ratios underperform over 68% of global competitors, suggesting moderate overvaluation. GuruFocus lists several medium warning signs, which include a price-earnings ratio near a 10-year high and a price-sales ratio near a one-year high.

84a9f9d6dc1210eac839d195274f8d93.png
84a9f9d6dc1210eac839d195274f8d93.png

Safran

The fund sold 374,514 shares of Safran, trimming the holding 15.79% and the equity portfolio 0.85%. Shares averaged 143.43 euros during the quarter.

9f8267d41b1b209b02f05809cd7939d7.png
9f8267d41b1b209b02f05809cd7939d7.png

The French aerospace and defense company designs, manufactures and services aircraft engines, mechanical and electrical systems for military and civil aircraft. GuruFocus ranks Safran's profitability 7 out of 10 on several positive investing signs, which include expanding profit margins and a return on equity that outperforms 82.22% of global competitors.

3ef6d6f01bbd155cb2d290e158ecc14e.png
3ef6d6f01bbd155cb2d290e158ecc14e.png

Despite strong profitability, Safran's valuation ranks 1 out of 10, driven by a share price and price-sales ratio near a 10-year high.

d7699242b6f02be42073e2c7b99c12e8.png
d7699242b6f02be42073e2c7b99c12e8.png

Spiros Segalas (Trades, Portfolio) also has a holding in Safran.

5796b504ec6cb93b2f395d61c7f66b14.png
5796b504ec6cb93b2f395d61c7f66b14.png

HSBC Holdings

The fund sold 3,416,075 shares of HSBC Holdings, trimming the stake 21.1% and the equity portfolio 0.38%. Shares averaged 5.89 pounds ($7.70) during the quarter.

f385a623e4c49f0d765f6ff67a5ac110.png
f385a623e4c49f0d765f6ff67a5ac110.png

The U.K.-based bank provides commercial and global banking services across Europe, Asia, the Middle East, North America and Africa. According to GuruFocus, HSBC has an equity-to-asset ratio of 0.07, which underperforms 77.91% of global competitors.

SINA

The fund sold 632,525 shares of SINA, trimming the equity portfolio 0.36%. Shares averaged $38.31 during the quarter.

77b9a70dc77e4faf3e4fb567de3a70f9.png
77b9a70dc77e4faf3e4fb567de3a70f9.png

The Chinese online media company operates Weibo, a social media platform that resembles that of Twitter Inc. (NYSE:TWTR). GuruFocus ranks SINA's profitability 7 out of 10 on several positive investing signs, which include operating margins that are outperforming 82.72% of global competitors.

627511e75b0c275047063fb18a60c91a.png
627511e75b0c275047063fb18a60c91a.png

Disclosure: No positions.

Read more here:

  • FPA Capital Fund Buys 4 Stocks in 4th Quarter

  • 4 High-Quality Health Care Companies for 2020

  • Jerome Dodson's Parnassus Fund Buys 2 Stocks in 4th Quarter



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.