Papers and Speeches

Note: Each of these documents can be mailed to you directly via U.S. Mail or can be viewed here.

INSIGHT: Revenge of the Nerds

We share our perspective on the case for value and international investing.

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Different Perspectives on Investment Performance: International Value Fund

An in-depth and comprehensive case study of the performance record of the Tweedy, Browne International Value Fund since its inception in June of 1993, including analysis of rolling period results in different market environments, the variability of returns, down market performance, "peak-to-trough" declines and subsequent recovery, upside/downside capture ratios, and after tax returns.

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The Dichotomy Between US and Non-US Returns

An examination of long term results of the S&P 500 and MSCI EAFE Indexes.

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The High Dividend Yield Return Advantage: An Examination of Empirical Data Associating Investment in High Dividend Yield Securities with Attractive Returns Over Long Measurement Periods

In this report, we set forth a number of studies, largely from academia, analyzing the importance of dividends, and the association of high dividend yields with attractive investment returns over long measurement periods. You may be familiar with our prior booklet, What Has Worked In Investing, where we provided an anthology of studies which empirically identified a return advantage for value oriented investment characteristics.In the same spirit, we attempt to examine what some in our industry have referred to as the “yield effect”, i.e. the correlation of high dividend yields to attractive rates of return over long measurement periods. Much has been written about dividends, and what is contained herein is not meant to be an exhaustive analysis, but rather a sampling of studies examining the impact of dividends on investment returns. We hope it will provide you with added insight and confidence, as it did us, in pursuing a yield-oriented investment strategy.

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What Has Worked In Investing, Studies of Investment Approaches and Characteristics Associated With Exceptional Returns

Contains over 50 academic studies of certain investment criteria that have produced high rates of return. In the studies, attractive returns were found for stocks with one or more of the following investment characteristics: low stock price in relation to book value; net current assets; earnings; cash flow; dividends or previous share price; small market capitalization and a significant pattern of stock purchases by one or more insiders (officers and directors), or by the company itself. (Please note that the performance reflected in the studies does not represent the investment performance of the Tweedy, Browne Funds.)

The studies examined focus on mature markets from around the world. The value-oriented investment characteristics explained in this paper have been the core of Tweedy, Browne's investment philosophy and stock selection decision making process for more than 50 years, and are the basis for the management of the International Value Fund, International Value Fund II — Currency Unhedged, Value Fund, and Worldwide High Dividend Yield Value Fund.

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How Hedging Can Substantially Reduce Foreign Stock Currency Risk

We try to be as close to currency "agnostic" as possible. This paper addresses why we hedge the Tweedy, Browne International Value Fund and Tweedy, Browne Value Fund, how we hedge and the costs/benefits associated with hedging foreign currency exposure. The paper also addresses why we offer two unhedged Funds, the Tweedy, Browne Worldwide High Dividend Yield Value Fund and the Tweedy, Browne International Value Fund II - Currency Unhedged.

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