Tweedy Browne Co. L.L.C., a Manhattan, NY based value firm, is shifting from its current base to Stamford, Connecticut, come the year 2013, in a new space of approximately 25,000 square feet. Tweedy Browne Co. L.L.C. was founded back in 1920, and has been located in Manhattan since then. This begs the question, ” Why move now”?
The value fund, which operates under the flagship of value investing, especially considering its associates and role models, manages $14 billion worth of AUM, and recorded an outstanding 7.3% return for the first half of 2012. Tweedy Browne, which was Morning Star’s international fund manger of the year in 2011, had recorded a 4.1% decline for the period, and therefore the recent rise is quite an achievement, as compared to peers.
The majority of the fund’s associates over the years, have either been directly, or indirectly involved with Benjamin Graham, or Doddsville, who according to Warren Buffett, are the founding fathers of value investing. Tweedy Browne lost one of its key figures (persons) in its historical existence earlier this year, when Ed Anderson, Jr. passed away on February 9, 2012 at the age of 83. Anderson had been with the company for one and a half decades, after working with Tweedy Browne from 1968 to 1983.
Tweedy Browne also lost one of its partner managers in 2009, when Christopher Browne, passed away on Sunday, December 13th, from a heart attack. Mr. Browne had spent more than 40 years with the Manhattan-based hedge fund.
The news that the fund is relocating to Stamford Connecticut comes as a surprise to many, as one would really wonder what could have provoked the decision. A majority of its managers over the years have hailed from around New York, and some studied at the New York Stock exchange institute. So they were pretty much at home in Manhattan. This location also means that a majority of their clients are located within the New York.
So then, what could it be? It is pretty hard to identify the benefits associated with the shift, as not much of the information has yet been released regarding the matter. However, several reports indicate, Connecticut offers fund managers some significant advantage with regard to taxes, which offers some serious savings for the fund managers salaries and interest earnings.
Nonetheless, it would be hard to believe that this turned out to be the reason, which personally, I would not believe. All in all, the new setting offers a good amount of space, and considering the city, I gather that it is also cheaper than the initial location.