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Tweedy, Browne: sorry, no more purchases in the $4-7 million/day range, please

David_Snowball
in Fund Discussions
Just got a note from the Tweedy folks, announcing "new daily trade limit restrictions for the Tweedy, Browne Funds. These limits have been established in an effort to reduce inflows of cash in an environment that is offering up fewer new value opportunities." In particular, "large inflows into any Fund from a single purchaser on a given day are subject to prior review by the Fund's Advisor, and may be rejected by the Fund. ... As of the date of this notice, the "large inflow" amounts are" $4M for Global Value and Global Value II, $7M for Value and Worldwide Hi Div Yield Value. In bold and caps: THESE AMOUNTS ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE.

Fascinating, captain.

David

Comments

  • Old_JoeOld_Joe
    Yes, very. Sounds like they don't like being forced to make very large purchases in this particular market.
  • ShostakovichShostakovich
    They're pricey; aside from that, I think the Tweedy crew is one of the few fiduciaries out there.
  • rjb112
    edited June 2014
    Shostakovich said:

    They're pricey; aside from that, I think the Tweedy crew is one of the few fiduciaries out there.

    My sentiments exactly. I like this investing team.
    I would have a higher % of my portfolio with them if their expense ratios were quite a bit lower.

  • Old_JoeOld_Joe
    Yes, they were well regarded even back in the Lou Rukeyser days, as I recall.
  • rjb112
    They also have a nice tradition, culture and history behind them. IIRC, Warren Buffett may have purchased his first stock using the Tweedy Browne brokerage?
  • heezsafe
    So, when my $4-7M in dvd income flows into my ckg account at month's end, and I have an urge to send it all to my Tweedy accounts as a subsequent investment, does this mean I'll "have to" trickle it in, day after day, in piddly $200K amounts? Geez, I guess the trend continues in putting up more and more barriers for the small retail investor to overcome. SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. I feel so disabused.
  • Old_JoeOld_Joe
    For a small commission you can send half to me, and we'll cut the deposit time in half. (Not to mention the deposit as well.) :-)
  • heezsafe
    @Old_Joe: Wow, you be one remarkable problem-solver, Joe. So enviable. And so nice to have such a practical alternative! I'll think of it as my Tweedy Browne Investment Plan B (do you charge for wire transfers?)
  • Old_JoeOld_Joe
    Aww, shucks! Since you were so nice, for you, no charge for wire transfers!
  • Vert
    rjb112 said:

    Shostakovich said:

    They're pricey; aside from that, I think the Tweedy crew is one of the few fiduciaries out there.



    My sentiments exactly. I like this investing team.
    I would have a higher % of my portfolio with them if their expense ratios were quite a bit lower.

    My sentiments as well. They're going with a pretty high cash level now so obviously they aren't finding much of value to buy. Maybe this indicates that they feel they could handle any forced liquidations from a market downdraft if it comes from small investors, but if you get redemptions from the big boys that cash might be eaten up in a hurry? Anyway, it seems to show some concern for the smaller investor.

  • ShostakovichShostakovich
    Vert said:

    rjb112 said:

    Shostakovich said:

    They're pricey; aside from that, I think the Tweedy crew is one of the few fiduciaries out there.



    My sentiments exactly. I like this investing team.
    I would have a higher % of my portfolio with them if their expense ratios were quite a bit lower.

    My sentiments as well. They're going with a pretty high cash level now so obviously they aren't finding much of value to buy. Maybe this indicates that they feel they could handle any forced liquidations from a market downdraft if it comes from small investors, but if you get redemptions from the big boys that cash might be eaten up in a hurry? Anyway, it seems to show some concern for the smaller investor.

    I don't currently use them for my IRA because I think they're a bit too conservative, but they fit my wife's taste to a "t". I have considered them for some personal mid-term investing goals outside of my IRA, however, where I'm more concerned about short-term downside. Their international fund seems to do better vis-a-vis its benchmark than the others, but I'm pleased with their overall performance, intellectual honesty, shareholder focus (aside from said fees, which AMG might have something to do with), and commitment to a bona-fide value strategy.
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