During the last fifty years or so, value investing has offered attractive performance potential, as well as greater stability of returns when compared to other equity investment strategies, especially during times of market volatility.1 Because value stocks trade at share prices that are below the investment adviser’s estimate of their intrinsic value, they may offer investors a “margin of safety” upon entry. In addition, to the extent estimated value increases over time, value stocks can also benefit if their market prices reach those higher estimates. This makes value investing an important potential part of any portfolio diversification strategy. 

The Value of Experience Through Market Cycles

Tweedy, Browne has maintained a dedicated focus on discovering and investing in undervalued stocks since the firm’s inception in 1920.

The Tweedy, Browne International Value Fund’s approach focuses on the fundamental characteristics of identified investment candidates within the value sphere. Rather than sticking closely to a benchmark index, Tweedy, Browne’s investment team invests without regard to any index and thinks outside the box. As part of this approach, Tweedy, Browne utilizes a security selection process that is highly disciplined. The result is performance since inception that is well above that of the MSCI EAFE Index (Hedged to USD), as can be seen in the following chart.

Growth of Hypothetical $1,000,000
June 1993-June 2022

Source: FactSet. As of June 30, 2022. Fund inception date was June 15, 1993. Prior to 2004, information with respect to the MSCI EAFE Index (Hedged to USD) was available at month end only; therefore, the since-inception performance of the MSCI EAFE Index (Hedged to USD) reflects performance from May 31, 1993, the closest month end to the International Value Fund’s inception date. Green shading indicates years with the index was negative for the year. The performance data shown represents past performance.  

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information through the most recent month end please call 800.835.3879 or visit our website at amgfunds.com. Click to view Prospectus.


100 Years of Value Investing

Learn more about Tweedy, Browne’s unique firm history and philosophy inspired by the work of Benjamin Graham, its success with value investing, and the Tweedy, Browne International Value Fund (TBGVX).

Featured Articles

Bob Wyckoff, managing director of Tweedy, Browne Company draws on the wisdom of great investors over the last century as his company recently celebrated its 100th anniversary.

Co-managers Thomas Shrager and Bob Wyckoff discuss Tweedy’s investment philosophy and the future of value investing.

Members of Tweedy, Browne’s investment team describe what’s reminiscent about today’s investing environment and unsettling times in the past.

Contact AMG

Advisor Line: 800.368.4410
Email: clientservice@amg.com

1 As measured by the performance of the MSCI World Index, the MSCI World Value Index, and the MSCI World Growth Index from January 1, 1975 through May 31, 2022.

For the period January 1, 1975 through May 31, 2022, the MSCI World Value Index (in USD) (the “Value Index”) had an annualized return of 10.5%, compared to 10.10% for the MSCI World Index (the “World Index”) and 9.55% for the MSCI World Growth Index (the “Growth Index”).   During the same period, the Value Index had a standard deviation of 14.69, compared to 14.75 for the World Index and 15.61 for the Growth Index, and a Sharpe ratio of 0.45, compared to 0.43 for the World Index and 0.38 for the Growth Index.

Current and future portfolio holdings are subject to risk. Investing in foreign securities involves additional risks beyond the risks of investing in US securities markets. These risks, which are more pronounced in emerging markets, include currency fluctuations; political uncertainty; different accounting and financial standards; different regulatory environments; and different market and economic factors in various non-US countries. In addition, the securities of small, less well-known companies may be more volatile than those of larger companies. Force majeure events such as pandemics, political upheaval and natural disasters are likely to increase the risks inherent in investments and could have a broad negative impact on the world economy and business activity in general. Value investing involves the risk that the market will not recognize a security’s intrinsic value for a long time, or that a security thought to be undervalued may actually be appropriately priced when purchased. Dividends are not guaranteed, and a company currently paying dividends may cease paying dividends at any time. Diversification does not guarantee a profit and does not protect against a loss in a declining market.

Please refer to the Fund’s prospectus for a description of risk factors associated with investments in securities which may be held by the Fund. All investments are subject to risk including the possible loss of principal. There is no assurance that a Fund will achieve its investment objective.

Although the practice of hedging against currency exchange rate changes utilized by the Tweedy, Browne International Value Fund reduces the risk of loss from exchange rate movements, it also reduces the ability of the Fund to gain from favorable exchange rate movements when the US dollar declines against the currencies in which the Fund’s investments are denominated and may impose costs on the Fund. As a result of practical considerations, fluctuations in a security’s prices, and fluctuations in currencies, the Fund’s hedges are expected to approximate, but will generally not equal, the Fund’s perceived foreign currency risk.

Sharpe ratio is a way to measure a fund’s risk-adjusted returns. It is calculated by dividing a fund’s annualized excess returns over the risk-free rate by its annualized standard deviation. The higher the Sharpe ratio, the better the fund’s historical risk-adjusted performance has been.

Standard Deviation is a statistical measurement of dispersion about an average that depicts how widely a mutual fund’s returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Standard deviation is most appropriate for measuring the risk of a fund that is an investor’s only holding. The figure cannot be combined for more than one fund because the standard deviation for a portfolio of multiple funds is a function of not only the individual standard deviations, but also of the degree of correlation among the funds’ returns. If a fund’s returns follow a normal distribution, then approximately 68% of the time they will fall within one standard deviation of the mean return for the fund, and 95% of the time within two standard deviations.

Tweedy, Browne International Value Fund is distributed by AMG Distributors, Inc., Member FINRA/SIPC.

This material must be preceded or accompanied by a prospectus for Tweedy, Browne Fund Inc. You should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. The prospectus should be read carefully before investing.