Tweedy Browne Company LLC reported that its equity portfolio had a market value of more $4.34 billion for the third quarter based on its 13F filing with the Securities and Exchange Commission (SEC).
Tweedy Browne’s stake in VZ is worth over $50 million
During the quarter, Tweedy Browne acquired more than 1 million shares of Verizon Communications Inc. (NYSE:VZ), the largest wireless carrier in the United States. Tweedy Browne’s stake in the company is worth around $50.87 million
Last month, Verizon Communications Inc. (NYSE:VZ) delivered $0.89 in earnings per share on $31.59 billion in revenue. Its earnings missed the consensus expectation while its revenue was slightly higher.
The company said the churn on its retail post-paid accounts increased to 1%. Analysts at Credit Suisse previously commented, “Verizon has been able to maintain strong subscriber trends while remaining less aggressive on pricing than peers.”
Today, Verizon CFO Fran Shammo expressed optimism that the Federal Communications Commission (FCC) will make the right decision in implementing regulations on how internet providers manage their web traffic.
The shares of Verizon Communications Inc. (NYSE:VZ) closed $50.82 per share, slightly up on Monday. Over the past 52-weeks, the stock climbed from $45.55 to as much as $53.66 per share.
Increased position
Tweedy Browne bought additional 693 shares of HSBC Holdings plc (ADR) (NYSE:HSBC) to 171,995 shares. Its stake in the company has a market value of approximately $8.75 million.
HSBC Holdings plc (ADR) (NYSE:HSBC) delivered weak financial results for the quarter due to higher litigation expenses of around $1.7 billion. The British bank posted a 12% decline in pre-tax net income of $4.4 billion. Its revenues remained flat at $15.58 billion. HSBC allocated $378 million to cover potential penalty related to allegations of currency markets manipulation from UK regulators.
Reduced and sold out positions
During the quarter, Tweedy Brown reduced its stake Banco Santander Brasil SA (ADR)(NYSE:BSBR) by more than 25.5 million shares to 38.5 million shares worth more than $234.2 million.
Tweedy Browne also reduced its stockholdings in Wal-Mart Stores, Inc (NYSE:WMT) by 95,608 shares, Wells Fargo & Co (NYSE:WFC) by 78,570 shares and ConocoPhillips (NYSE:COP) by 116,806 shares among others.
Tweedy Browne sold out its entire stake in Sysco Corporation (NYSE:SYY).
Tweedy Browne’s funds suffered modest declines
Tweedy Browne is active in value investing. According to the firm, volatility returned to the global equity markets near the end of the third quarter.
The firm manages four funds including Global Value Fund, Global Value Fund II, Value Fund and WW High Dividend Yield Value Fund. According to Tweedy, Browne, all of its funds suffered a modest decline by the end of the third quarter.
During the quarter, Tweedy Brownes’ Global Value Fund declined by 1.18%, Global Value Fund II dropped 4.35%, Value Fund fell 1.23% and WW High Dividend Yield Value Fund tanked 4.34%.
