Tweedy, Browne Funds add Berkeley Group, Breedon Group; trim BAE Systems, Rheinmetall among Q3 moves

Tweedy, Browne Funds continued to make financial progress but underperformed their benchmark indices during the third quarter. 

The fund initiated new positions in Berkeley Group Holdings (OTCPK:BKGFY) and Breedon Group (OTC:BDRGF), both based in the United Kingdom.

In Europe, the fund purchased Sodexo (OTCPK:SDXAY) shares, the French food services and facilities-management company.  It also increased its investment in Azelis Group, a Belgian specialty-chemicals distributor.

In Japan, the fund initiated a position in Santec Holdings (SNTEF), a producer of optical and laser components used in communications and testing.

Smaller additions included Johnson Service Group (JNSGF), a UK textile rental and laundering company benefiting from the post-pandemic recovery in hospitality, and Nakanishi (NKNIF), a Japanese dental-equipment maker with leading positions in precision spindles and hand-held grinders.

On the sell side, the fund trimmed its positions in BAE Systems (OTCPK:BAESY) and Rheinmetall (OTCPK:RNMBY). It also sold Teleperformance after reassessing its assessment of their medium-term outlooks.

Other sales included Babcock International (OTCPK:BCKIF), Chow Sang Sang Holdings (CHWSF), Luk Fook Holdings (LKFLK), Sumitomo Heavy Industries (OTCPK:SOHVY), SKF AB (OTCPK:SKFRY), and Star Micronics (SMIOF) as the fund believed its investment theses had largely run their course.

In the Worldwide High Dividend Yield Value Fund, the fund added to its holdings such as Arkema (OTCPK:ARKAY), Johnson Service Group, and Sodexo, and trimmed DBS Group (DBSYDY) and BAE Systems following strong gains.

Source: Q3 fund letter