N-Q 1 p16895nvq.txt N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-07458 Tweedy, Browne Fund Inc. (Exact name of registrant as specified in charter) 350 Park Avenue, 9th Floor New York, NY 10022 (Address of principal executive offices) (Zip code) M. Gervase Rosenberger Tweedy, Browne Company LLC 350 Park Avenue, 9th Floor New York, NY 10022 (Name and address of agent for service) Registrant's telephone number, including area code: 212-916-0600 Date of fiscal year end: March 31 Date of reporting period: December 31, 2009 Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (Sections 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached herewith. TWEEDY, BROWNE GLOBAL VALUE FUND PORTFOLIO OF INVESTMENTS December 31, 2009 (Unaudited)
VALUE SHARES (NOTE 1) ------------ -------------- COMMON STOCKS--92.2% CANADA--1.7% 1,246,000 National Bank of Canada, Toronto ............... $ 71,597,310 -------------- CZECH REPUBLIC--0.0% + 2,800 Philip Morris CR a.s. .......................... 1,338,234 -------------- FINLAND--4.3% 1,448,893 Cargotec Corporation, B Share .................. 40,141,356 3,305,000 Kone Oyj, Class B .............................. 142,064,879 -------------- 182,206,235 -------------- FRANCE--7.5% 1,780,523 CNP Assurances ................................. 173,098,952 2,188,000 Total SA ....................................... 141,280,277 -------------- 314,379,229 -------------- GERMANY--14.3% 2,289,458 Henkel AG & Company, KGaA ...................... 102,320,861 957,807 Krones AG ...................................... 48,784,270 42,354 KSB AG ......................................... 24,853,708 920,345 Linde AG ....................................... 111,129,622 899,000 Muenchener Rueckversicherungs-Gesellschaft AG .. 140,166,043 1,617,436 Springer (Axel) Verlag AG ...................... 174,161,138 -------------- 601,415,642 -------------- GREECE--0.3% 480,695 Coca Cola Hellenic Bottling Company SA ......... 11,027,867 -------------- HONG KONG--0.8% 2,002,500 Jardine Strategic Holdings Ltd. ................ 35,244,000 -------------- IRELAND--0.0% + 1,111,317 Unidare PLC ++ ................................. 95,667 -------------- ITALY--2.4% 147,640 Gruppo Minerali Maffei ++ ...................... 1,037,943 4,467,000 Mediaset SPA ................................... 36,755,542 8,281,500 Mondadori (Arnoldo) Editore SPA ++ ............. 36,803,894 4,795,392 Sol SPA ........................................ 27,348,575 626,000 Vincenzo Zucchi SPA ++ ......................... 407,759 -------------- 102,353,713 -------------- JAPAN--6.2% 545,600 Aica Kogyo Company Ltd. ........................ 5,532,482 1,594,700 Canon Inc. ..................................... 66,977,571 306,800 Daikoku Denki Company Ltd. ..................... 5,213,573 2,064,000 Fujitec Company Ltd. ........................... 11,129,792 446,600 Fukuda Denshi Company Ltd. ..................... 10,889,758 1,073,600 Hi-Lex Corporation ............................. 9,917,783 1,577,500 Honda Motor Company Ltd. ....................... 52,699,125 22,100 Hurxley Corporation ............................ 157,628 321,000 Katsuragawa Electric Company Ltd. .............. 772,372 133,000 Kawasumi Laboratories, Inc. .................... 787,185 1,329,500 Kuroda Electric Company Ltd. ................... 19,279,499 69,100 Mandom Corporation ............................. 1,955,835
VALUE SHARES (NOTE 1) ------------ -------------- JAPAN (CONTINUED) 21,670 Medikit Company Ltd. ........................... $ 4,722,964 36,240 Milbon Company Ltd. ............................ 770,774 307,100 Mirai Industry Company Ltd. .................... 2,434,500 162,780 Nippon Kanzai Company Ltd. ..................... 2,603,571 1,051,000 Nippon Konpo Unyu Soko Company Ltd. ............ 11,233,095 420,500 Nitto FC Company Ltd. .......................... 2,100,354 20,100 Ryoyo Electro Corporation ...................... 159,341 349,200 Sangetsu Company Ltd. .......................... 7,329,468 172,000 SK Kaken Company Ltd. .......................... 5,025,404 528,500 T. Hasegawa Company Ltd. ....................... 7,465,251 1,281,300 Takata Corporation ............................. 29,660,041 -------------- 258,817,366 -------------- MEXICO--5.0% 1,691,719 Coca-Cola Femsa SA de CV, Sponsored ADR +++ .... 111,179,773 14,623,380 Embotelladoras Arca SA de CV ................... 48,724,438 19,300,000 Grupo Continental SA ........................... 48,902,676 -------------- 208,806,887 -------------- NETHERLANDS--11.4% 2,093,000 Akzo Nobel NV .................................. 139,335,141 23,620 Crown Van Gelder Gemeenschappelijk Bezit NV .... 274,531 3,998,000 Heineken Holding NV ............................ 167,694,702 450,000 Imtech NV ...................................... 12,160,504 2,009,134 Telegraaf Media Groep NV ....................... 37,877,187 307,955 TKH Group NV ................................... 6,163,607 3,470,000 Unilever NV, CVA ............................... 113,262,027 -------------- 476,767,699 -------------- NORWAY--1.8% 3,395,700 Schibsted ASA ++ ............................... 76,474,964 -------------- SINGAPORE--2.2% 30,338,550 Fraser and Neave Ltd. .......................... 90,759,578 -------------- SOUTH KOREA--3.7% 150,900 Daegu Department Store Company Ltd. ............ 1,542,077 11,330 Daehan City Gas Company Ltd. ++ ................ 271,945 90,974 Hanil Cement Company Ltd. ++ ................... 6,281,208 4,578,055 Korea Exchange Bank ++ ......................... 57,005,773 241,172 SK Telecom Company Ltd. ........................ 35,104,793 3,437,422 SK Telecom Company Ltd., ADR ................... 55,892,482 -------------- 156,098,278 -------------- SPAIN--3.0% 8,546,756 Gestevision Telecinco SA ....................... 124,708,401 -------------- SWEDEN--0.0%+ 63,360 Cloetta Fazer AB, B Shares ++ .................. 267,990 -------------- SWITZERLAND--14.6% 186,990 Coltene Holding AG ............................. 9,858,239 1,559,000 Compagnie Financiere Richemont AG .............. 52,376,368
SEE NOTES TO PORTFOLIO OF INVESTMENTS 1 TWEEDY, BROWNE GLOBAL VALUE FUND PORTFOLIO OF INVESTMENTS December 31, 2009 (Unaudited)
VALUE SHARES (NOTE 1) ------------ -------------- SWITZERLAND (CONTINUED) 537,645 Daetwyler Holding AG, Bearer ................... $ 30,165,330 89,813 Edipresse SA, Bearer ........................... 20,199,780 40,000 Forbo Holding AG ............................... 13,155,986 22,300 Loeb Holding AG ................................ 3,731,947 3,500,000 Nestle SA, Registered .......................... 169,963,724 8 Neue Zuercher Zeitung ++ ....................... 400,677 2,416,530 Novartis AG, Registered ........................ 132,076,368 45,425 Phoenix Mecano AG .............................. 17,313,132 185,918 PubliGroupe SA, Registered ++ .................. 16,905,724 496,000 Roche Holding AG ............................... 84,349,988 182,827 Siegfried Holding AG ........................... 16,580,441 7,400 Sika AG, Bearer ................................ 11,560,822 432,618 Tamedia AG ..................................... 31,387,038 857 Zehnder Group AG ............................... 1,152,339 -------------- 611,177,903 -------------- UNITED KINGDOM--7.9% 1,521,000 AGA Foodservice Group PLC ++ ................... 2,947,437 2,453,599 BBA Group PLC .................................. 6,498,027 3,974,658 Carclo PLC ..................................... 9,306,831 2,775,758 Daily Mail & General Trust, Class A ............ 18,745,615 8,225,426 Diageo PLC, Sponsored ADR ...................... 143,986,492 1,260,982 G4S PLC ........................................ 5,306,612 969,024 GlaxoSmithKline PLC ............................ 20,648,000 593,139 GlaxoSmithKline PLC, Sponsored ADR ............. 25,060,123 923,006 Headlam Group PLC .............................. 4,475,294 5,038,361 TT Electronics PLC ++ .......................... 5,959,790 2,825,000 Unilever PLC ................................... 90,965,702 -------------- 333,899,923 -------------- UNITED STATES--5.1% 75,700 American National Insurance Company ............ 9,041,608 526,900 Burlington Northern Santa Fe Corporation ....... 51,962,878 587,000 ConocoPhillips ................................. 29,978,090 49,250 Devon Energy Corporation ....................... 3,619,875 1,752,802 Philip Morris International, Inc. .............. 84,467,528 49,884 Torchmark Corporation .......................... 2,192,402 269,276 Transatlantic Holdings, Inc. ................... 14,031,972 284,960 Union Pacific Corporation ...................... 18,208,944 -------------- 213,503,297 -------------- TOTAL COMMON STOCKS (COST $2,329,661,218) .......................... 3,870,940,183 --------------
VALUE SHARES (NOTE 1) ------------ -------------- PREFERRED STOCKS--0.3% 166,388 Adris Grupa d.d. ............................... $ 8,474,160 543,870 Villeroy & Boch AG ............................. 4,268,309 -------------- TOTAL PREFERRED STOCKS (COST $14,958,803) ............................. 12,742,469 -------------- REGISTERED INVESTMENT COMPANY--6.5% 272,339,053 Dreyfus Government Prime Cash Management ....... 272,339,053 -------------- TOTAL REGISTERED INVESTMENT COMPANY (COST $272,339,053) ............................ 272,339,053 --------------
FACE VALUE ------------ U.S. TREASURY BILL--2.7% $115,000,000 0.163% * due 5/6/10 +++ ................ 114,956,300 -------------- TOTAL U.S. TREASURY BILL (COST $114,935,113) .................... 114,956,300 -------------- TOTAL INVESTMENTS (COST $2,731,894,187**) ............................... 101.7% 4,270,978,005 UNREALIZED DEPRECIATION ON FORWARD CONTRACTS (NET) .... (1.8) (75,098,519) OTHER ASSETS AND LIABILITIES (NET) .................... 0.1 5,252,505 ----- -------------- NET ASSETS ............................................ 100.0% $4,201,131,991 ===== ==============
---------- * RATE REPRESENTS ANNUALIZED YIELD AT DATE OF PURCHASE. ** AGGREGATE COST FOR FEDERAL TAX PURPOSES IS $2,731,894,187. + AMOUNT REPRESENTS LESS THAN 0.1% OF NET ASSETS. ++ NON-INCOME PRODUCING SECURITY. +++ AT DECEMBER 31, 2009, LIQUID ASSETS TOTALING $141,168,373 HAVE BEEN SEGRE- GATED TO COVER CERTAIN OPEN FORWARD CONTRACTS. ABBREVIATIONS: ADR -- AMERICAN DEPOSITORY RECEIPT CVA -- CERTIFICAATEN VAN AANDELEN (SHARE CERTIFICATES) SEE NOTES TO PORTFOLIO OF INVESTMENTS 2 TWEEDY, BROWNE GLOBAL VALUE FUND SECTOR DIVERSIFICATION December 31, 2009 (Unaudited)
PERCENTAGE OF VALUE SECTOR DIVERSIFICATION NET ASSETS (NOTE 1) ---------------------- ------------- -------------- COMMON STOCKS: Media ................................................ 13.7% $ 574,419,960 Beverage ............................................. 12.7 531,515,948 Capital Goods ........................................ 10.2 428,458,237 Food ................................................. 9.1 381,924,694 Insurance ............................................ 8.1 338,530,977 Materials ............................................ 7.9 329,980,872 Pharmaceuticals, Biotechnology & Life Sciences ....... 6.2 262,134,479 Energy ............................................... 4.2 174,878,242 Banks ................................................ 3.1 128,603,083 Household & Personal Products ........................ 2.5 105,047,470 Technology Hardware & Equipment ...................... 2.3 97,345,813 Automobiles & Components ............................. 2.2 92,276,949 Telecommunication Services ........................... 2.2 90,997,275 Transportation ....................................... 2.1 87,902,944 Consumer Durables & Apparel .......................... 2.0 85,905,885 Tobacco .............................................. 2.0 85,805,762 Diversified Financials ............................... 0.8 35,244,000 Health Care Equipment & Services ..................... 0.6 26,258,146 Commercial Services & Supplies ....................... 0.2 7,910,183 Retailing ............................................ 0.1 5,369,691 Utilities ............................................ 0.0+ 271,945 Consumer Services .................................... 0.0+ 157,628 ----- -------------- TOTAL COMMON STOCKS .................................. 92.2 3,870,940,183 ----- -------------- PREFERRED STOCKS ..................................... 0.3 12,742,469 REGISTERED INVESTMENT COMPANY ........................ 6.5 272,339,053 U.S. TREASURY BILL ................................... 2.7 114,956,300 UNREALIZED DEPRECIATION ON FORWARD CONTRACTS (NET) ... (1.8) (75,098,519) OTHER ASSETS AND LIABILITIES (NET) ................... 0.1 5,252,505 ----- -------------- NET ASSETS ........................................... 100.0% $4,201,131,991 ===== ==============
---------- + AMOUNT REPRESENTS LESS THAN 0.1% OF NET ASSETS PORTFOLIO COMPOSITION December 31, 2009 (Unaudited) (PIE CHART) CANADA 2% FINLAND 4% FRANCE 8% GERMANY 14% HONG KONG 1% ITALY 2% JAPAN 6% MEXICO 5% NETHERLANDS 11% NORWAY 2% SINGAPORE 2% SOUTH KOREA 4% SPAIN 3% SWITZERLAND 15% UNITED KINGDOM 8% UNITED STATES 5% CASH EQUIVALENTS AND OTHER ASSETS AND LIABILITIES (NET) ++ 8%
CROATIA 0%+ CZECH REPUBLIC 0%+ GREECE 0%+ IRELAND 0%+ SWEDEN 0%+
+ AMOUNT REPRESENTS LESS THAN 1% OF NET ASSETS ++ INCLUDES UNREALIZED DEPRECIATION ON FORWARD CONTRACTS (NET) SEE NOTES TO PORTFOLIO OF INVESTMENTS 3 TWEEDY, BROWNE GLOBAL VALUE FUND SCHEDULE OF FORWARD EXCHANGE CONTRACTS December 31, 2009 (Unaudited)
CONTRACT CONTRACT VALUE ON VALUE 12/31/09 UNREALIZED CONTRACTS VALUE DATE ORIGINATION DATE (NOTE 1) GAIN (LOSS) -------------- ---------- ----------------- --------------- ------------ FORWARD EXCHANGE CONTRACTS TO BUY 10,000,000 Canadian Dollar ..................... 3/12/10 $ 9,433,161 $ 9,538,855 $ 105,694 1,275,000,000 Japanese Yen ........................ 2/24/10 14,277,715 13,699,535 (578,180) 17,300,000,000 South Korean Won .................... 2/5/10 14,944,713 14,839,913 (104,800) --------------- --------------- ------------ TOTAL $ 38,655,589 $ 38,078,303 $ (577,286) =============== =============== ============ FORWARD EXCHANGE CONTRACTS TO SELL 15,000,000 Canadian Dollar ..................... 3/12/10 $ (11,738,008) $ (14,308,284) $ (2,570,276) 45,000,000 Canadian Dollar ..................... 5/14/10 (38,913,871) (42,920,404) (4,006,533) 6,000,000 Canadian Dollar ..................... 6/1/10 (5,369,368) (5,722,514) (353,146) 20,000,000 Canadian Dollar ..................... 6/10/10 (18,294,914) (19,074,703) (779,789) 50,000,000 European Union Euro ................. 2/5/10 (64,892,497) (71,734,179) (6,841,682) 40,000,000 European Union Euro ................. 3/30/10 (54,324,000) (57,381,589) (3,057,589) 25,000,000 European Union Euro ................. 4/19/10 (32,886,251) (35,860,638) (2,974,387) 65,000,000 European Union Euro ................. 5/4/10 (84,910,802) (93,232,042) (8,321,240) 85,000,000 European Union Euro ................. 5/14/10 115,582,146) (121,913,928) (6,331,782) 15,000,000 European Union Euro ................. 5/25/10 (20,375,252) (21,513,272) (1,138,020) 35,000,000 European Union Euro ................. 5/27/10 (47,543,127) (50,197,232) (2,654,105) 90,000,000 European Union Euro ................. 6/2/10 125,887,507) (129,075,431) (3,187,924) 45,000,000 European Union Euro ................. 6/10/10 (63,706,495) (64,535,569) (829,074) 40,000,000 European Union Euro ................. 8/2/10 (56,947,600) (57,348,953) (401,353) 45,000,000 European Union Euro ................. 8/30/10 (64,237,279) (64,506,954) (269,675) 120,000,000 European Union Euro ................. 9/2/10 170,740,803) (172,015,513) (1,274,710) 57,000,000 European Union Euro ................. 9/15/10 (82,735,509) (81,701,126) 1,034,383 75,000,000 European Union Euro ................. 9/24/10 109,447,509) (107,495,797) 1,951,712 100,000,000 European Union Euro ................. 10/12/10 145,888,008) (143,312,262) 2,575,746 40,000,000 European Union Euro ................. 10/15/10 (58,594,005) (57,323,870) 1,270,135 40,000,000 European Union Euro ................. 10/19/10 (59,008,008) (57,322,490) 1,685,518 16,000,000 European Union Euro ................. 11/24/10 (23,644,963) (22,924,029) 720,934 27,000,000 Great Britain Pound Sterling ........ 4/19/10 (39,606,300) (43,570,967) (3,964,667) 15,000,000 Great Britain Pound Sterling ........ 5/14/10 (22,613,700) (24,202,305) (1,588,605) 15,000,000 Great Britain Pound Sterling ........ 8/31/10 (24,705,225) (24,185,286) 519,939 9,500,000 Great Britain Pound Sterling ........ 9/15/10 (15,689,725) (15,315,837) 373,888 12,000,000 Great Britain Pound Sterling ........ 11/24/10 (20,043,000) (19,337,417) 705,583 5,500,000,000 Japanese Yen ........................ 2/24/10 (60,492,741) (59,096,035) 1,396,706 2,000,000,000 Japanese Yen ........................ 3/5/10 (20,708,221) (21,490,525) (782,304) 1,800,000,000 Japanese Yen ........................ 5/14/10 (18,557,179) (19,353,019) (795,840) 5,000,000,000 Japanese Yen ........................ 6/22/10 (51,380,861) (53,779,072) (2,398,211) 3,200,000,000 Japanese Yen ........................ 9/15/10 (34,896,401) (34,496,451) 399,950 500,000,000 Mexican Peso ........................ 1/15/10 (34,536,349) (38,228,053) (3,691,704) 230,000,000 Mexican Peso ........................ 2/5/10 (15,299,776) (17,541,250) (2,241,474) 200,000,000 Mexican Peso ........................ 5/4/10 (13,618,412) (15,091,926) (1,473,514) 330,000,000 Mexican Peso ........................ 5/25/10 (23,738,445) (24,837,177) (1,098,732) 240,000,000 Mexican Peso ........................ 5/27/10 (17,581,774) (18,058,947) (477,173) 415,000,000 Mexican Peso ........................ 10/22/10 (30,060,919) (30,576,981) (516,062) 400,000,000 Mexican Peso ........................ 11/1/10 (28,647,139) (29,428,724) (781,585) 156,000,000 Norwegian Krone ..................... 9/24/10 (25,942,925) (26,642,120) (699,195) 140,000,000 Norwegian Krone ..................... 10/19/10 (24,343,169) (23,878,959) 464,210 23,000,000 Singapore Dollar .................... 6/10/10 (15,898,801) (16,359,511) (460,710) 35,000,000 Singapore Dollar .................... 11/24/10 (25,191,636) (24,879,236) 312,400 22,000,000,000 South Korean Won .................... 2/5/10 (16,070,124) (18,871,566) (2,801,442) 30,000,000,000 South Korean Won .................... 3/30/10 (22,654,333) (25,675,882) (3,021,549) 41,350,000,000 South Korean Won .................... 5/4/10 (30,784,693) (35,330,892) (4,546,199) 25,000,000,000 South Korean Won .................... 5/25/10 (19,841,270) (21,339,606) (1,498,336) 40,000,000,000 South Korean Won .................... 6/29/10 (31,347,962) (34,086,793) (2,738,831) 40,350,000,000 South Korean Won .................... 9/24/10 (32,962,993) (34,258,060) (1,295,067) 25,000,000 Swiss Franc ......................... 5/4/10 (21,893,336) (24,207,270) (2,313,934) 20,000,000 Swiss Franc ......................... 5/14/10 (18,184,959) (19,367,898) (1,182,939) 47,000,000 Swiss Franc ......................... 8/17/10 (43,570,965) (45,583,864) (2,012,899) 46,000,000 Swiss Franc ......................... 8/30/10 (43,523,100) (44,626,148) (1,103,048) 77,000,000 Swiss Franc ......................... 10/5/10 (74,895,438) (74,756,744) 138,694 70,000,000 Swiss Franc ......................... 10/12/10 (68,086,762) (67,970,701) 116,061 40,000,000 Swiss Franc ......................... 10/15/10 (38,872,692) (38,842,856) 29,836 40,000,000 Swiss Franc ......................... 10/19/10 (39,104,507) (38,846,130) 258,377 --------------- --------------- ------------ TOTAL ................................................ $(2,521,013,754) $(2,595,534,987) $(74,521,233) =============== =============== ============ UNREALIZED DEPRECIATION ON FORWARD CONTRACTS (NET) ... $(75,098,519) ============
SEE NOTES TO PORTFOLIO OF INVESTMENTS 4 TWEEDY, BROWNE GLOBAL VALUE FUND II - CURRENCY UNHEDGED PORTFOLIO OF INVESTMENTS December 31, 2009 (Unaudited)
VALUE SHARES (NOTE 1) ------------ -------------- COMMON STOCKS--33.0% FINLAND--0.3% 1,800 Kone Oyj, Class B .............................. $ 77,373 -------------- FRANCE--3.6% 5,040 CNP Assurances ................................. 489,979 5,300 Total SA ....................................... 342,224 -------------- 832,203 -------------- GERMANY--4.5% 1,650 Henkel AG & Company, KGaA ...................... 73,742 1,300 Krones AG ...................................... 66,213 3,100 Muenchener Rueckversicherungs Gesellschaft AG .. 483,331 3,950 Springer (Axel) Verlag AG ...................... 425,325 -------------- 1,048,611 -------------- HONG KONG--0.5% 7,000 Jardine Strategic Holdings Ltd. ................ 123,200 -------------- ITALY--3.3% 12,170 Buzzi Unicem SPA ............................... 196,958 11,200 Davide Campari-Milano SPA ...................... 117,224 17,833 Marr SPA ....................................... 152,235 16,400 Mediaset SPA ................................... 134,943 27,100 Sol SPA ........................................ 154,554 -------------- 755,914 -------------- JAPAN--2.3% 2,500 Canon Inc. ..................................... 105,000 6,300 Honda Motor Company Ltd. ....................... 210,462 7,000 Milbon Company Ltd. ............................ 148,880 3,400 Takata Corporation ............................. 78,705 -------------- 543,047 -------------- MEXICO--1.0% 30,000 Embotelladoras Arca SA de CV ................... 99,959 55,000 Grupo Continental SA ........................... 139,360 -------------- 239,319 -------------- NETHERLANDS--3.7% 900 Akzo Nobel NV .................................. 59,915 8,775 Heineken Holding NV ............................ 368,064 13,100 Unilever NV, CVA ............................... 427,589 -------------- 855,568 -------------- SINGAPORE--0.2% 16,000 Fraser and Neave Ltd. .......................... 47,865 -------------- SOUTH KOREA--1.0% 14,100 SK Telecom Company Ltd., ADR ................... 229,266 -------------- SPAIN--0.5% 8,400 Gestevision Telecinco SA ....................... 122,567 --------------
VALUE SHARES (NOTE 1) ------------ -------------- SWITZERLAND--5.3% 4,990 Nestle SA, Registered .......................... $ 242,320 5,375 Novartis AG, Registered ........................ 293,773 1,500 Roche Holding AG ............................... 255,091 3,860 Schindler Holding AG ........................... 292,557 122 Zehnder Group AG ............................... 164,043 -------------- 1,247,784 -------------- UNITED KINGDOM--4.6% 42,600 BAE Systems PLC ................................ 247,310 18,700 Diageo PLC, Sponsored ADR ...................... 327,344 11,400 GlaxoSmithKline PLC ............................ 242,912 52,780 Hays PLC ....................................... 88,727 33,425 Headlam Group PLC .............................. 162,065 -------------- 1,068,358 -------------- UNITED STATES--0.5% 4,145 Home Depot, Inc. ............................... 119,915 -------------- MISCELLANEOUS--1.7% Undisclosed Securities *+ ...................... 390,044 -------------- TOTAL COMMON STOCKS (COST $7,511,389) .............................. 7,701,034 -------------- PREFERRED STOCK--0.7% 265 KSB AG ......................................... 151,702 -------------- TOTAL PREFERRED STOCK (COST $159,205) ................................ 151,702 -------------- REGISTERED INVESTMENT COMPANY--65.2% 15,228,128 Dreyfus Government Prime Cash Management ....... 15,228,128 -------------- TOTAL REGISTERED INVESTMENT COMPANY (COST $15,228,128) ............................. 15,228,128 -------------- TOTAL INVESTMENTS (COST $22,898,722 **) .............................. 98.9% 23,080,864 OTHER ASSETS AND LIABILITIES (NET) .................... 1.1 263,071 ----- -------------- NET ASSETS ............................................ 100.0% $ 23,343,935 ===== ==============
---------- * "UNDISCLOSED SECURITIES" REPRESENTS ISSUERS, GENERALLY SMALLER CAPITALIZATION ISSUERS, WHERE DISCLOSURE MAY BE DISADVANTAGEOUS TO THE FUND'S ACCUMULATION OR DISPOSITION PROGRAM. ** AGGREGATE COST FOR FEDERAL TAX PURPOSES IS $22,898,722. + NON-INCOME PRODUCING SECURITY. ABBREVIATIONS: ADR -- AMERICAN DEPOSITORY RECEIPT CVA -- CERTIFICAATEN VAN AANDELEN (SHARE CERTIFICATES) SEE NOTES TO PORTFOLIO OF INVESTMENTS 5 TWEEDY, BROWNE GLOBAL VALUE FUND II - CURRENCY UNHEDGED SECTOR DIVERSIFICATION December 31, 2009 (Unaudited)
PERCENTAGE OF VALUE SECTOR DIVERSIFICATION NET ASSETS (NOTE 1) ---------------------- ------------- -------------- COMMON STOCKS: Beverage ............................................. 4.4% $ 1,051,951 Capital Goods ........................................ 4.4 1,018,561 Insurance ............................................ 4.2 973,310 Pharmaceuticals, Biotechnology & Life Sciences ....... 3.4 791,776 Media ................................................ 3.2 755,580 Food ................................................. 2.9 669,909 Materials ............................................ 2.1 499,079 Energy ............................................... 1.5 342,224 Retailing ............................................ 1.3 311,240 Automobiles & Components ............................. 1.2 289,167 Telecommunication Services ........................... 1.0 229,266 Technology Hardware & Equipment ...................... 1.0 223,288 Household & Personal Products ........................ 1.0 222,622 Commercial Services & Supplies ....................... 0.7 163,901 Food & Staples Retailing ............................. 0.7 152,235 Utilities ............................................ 0.0+ 6,925 ----- -------------- TOTAL COMMON STOCKS .................................. 33.0 7,701,034 ----- -------------- PREFERRED STOCKS ..................................... 0.7 151,702 REGISTERED INVESTMENT COMPANY ........................ 65.2 15,228,128 OTHER ASSETS AND LIABILITIES (NET) ................... 1.1 263,071 ----- -------------- NET ASSETS ........................................... 100.0% $ 23,343,935 ===== ==============
---------- + AMOUNT REPRESENTS LESS THAN 0.1% OF NET ASSETS PORTFOLIO COMPOSITION December 31, 2009 (Unaudited) (PIE CHART) FRANCE 3% GERMANY 5% HONG KONG 1% ITALY 3% JAPAN 2% MEXICO 1% MISCELLANEOUS 2% NETHERLANDS 4% SOUTH KOREA 1% SPAIN 1% SWITZERLAND 5% UNITED KINGDOM 5% UNITED STATES 1% CASH EQUIVALENTS AND OTHER ASSETS AND LIABILITIES (NET) 66%
FINLAND 0%+ SINGAPORE 0%+
+ AMOUNT REPRESENTS LESS THAN 1% OF NET ASSETS SEE NOTES TO PORTFOLIO OF INVESTMENTS 6 TWEEDY, BROWNE VALUE FUND PORTFOLIO OF INVESTMENTS December 31, 2009 (Unaudited)
VALUE SHARES (NOTE 1) ------------ -------------- COMMON STOCKS--94.3% FRANCE--5.7% 99,100 CNP Assurances ................................. $ 9,634,307 195,100 Total SA ....................................... 12,597,707 -------------- 22,232,014 -------------- GERMANY--11.3% 219,600 Henkel AG & Company, KGaA ...................... 9,814,402 94,000 Krones AG ...................................... 4,787,730 95,000 Linde AG ....................................... 11,471,040 82,470 Muenchener Rueckversicherungs Gesellschaft AG .. 12,858,169 50,600 Springer (Axel) Verlag AG ...................... 5,448,471 -------------- 44,379,812 -------------- JAPAN--2.3% 148,100 Canon Inc. ..................................... 6,220,216 87,000 Honda Motor Company Ltd. ....................... 2,906,386 -------------- 9,126,602 -------------- MEXICO--0.4% 565,000 Grupo Continental SA ........................... 1,431,607 -------------- NETHERLANDS--6.5% 373,000 Heineken Holding NV ............................ 15,645,354 297,691 Unilever NV, ADR ............................... 9,624,350 -------------- 25,269,704 -------------- SOUTH KOREA--2.1% 380,320 Korea Exchange Bank + .......................... 4,735,731 206,544 SK Telecom Company Ltd., ADR ................... 3,358,405 -------------- 8,094,136 -------------- SPAIN--2.5% 665,700 Gestevision Telecinco SA ....................... 9,713,438 -------------- SWITZERLAND--8.3% 360,600 Nestle SA, Registered, Sponsored ADR ........... 17,435,010 201,255 Novartis AG, Registered ........................ 10,999,669 24,700 Roche Holding AG ............................... 4,200,493 -------------- 32,635,172 -------------- UNITED KINGDOM--8.1% 256,000 Diageo PLC, Sponsored ADR ...................... 17,768,960 184,000 GlaxoSmithKline PLC ............................ 3,920,679 308,880 Unilever PLC, Sponsored ADR .................... 9,853,272 -------------- 31,542,911 -------------- UNITED STATES--47.1% 94,535 3M Company ..................................... 7,815,208 107,002 American National Insurance Company ............ 12,780,319 98,576 Avatar Holdings Inc. + ......................... 1,676,778 97,139 Burlington Northern Santa Fe Corporation ....... 9,579,848 758,590 Comcast Corporation, Special Class A ........... 12,145,026
VALUE SHARES (NOTE 1) ------------ -------------- UNITED STATES (CONTINUED) 153,905 ConocoPhillips ................................. $ 7,859,928 136,105 Devon Energy Corporation ....................... 10,003,717 320,770 Emerson Electric Company ....................... 13,664,802 236,780 Federated Investors, Inc., Class B ............. 6,511,450 75,560 FinishMaster, Inc. + ........................... 1,288,298 100,804 Henry Schein, Inc. + ........................... 5,302,290 136,018 Home Depot, Inc. ............................... 3,935,001 194,449 Johnson & Johnson .............................. 12,524,460 357,000 Leucadia National Corporation + ................ 8,493,030 52,084 National Western Life Insurance Company, Class A ..................................... 9,042,824 98,000 Norfolk Southern Corporation ................... 5,137,160 241,910 Philip Morris International, Inc. .............. 11,657,643 199,032 Transatlantic Holdings, Inc. ................... 10,371,558 137,202 UniFirst Corporation ........................... 6,600,788 159,680 Union Pacific Corporation ...................... 10,203,552 238,000 Wal-Mart Stores, Inc. .......................... 12,721,100 85,235 WellPoint, Inc. + .............................. 4,968,348 -------------- 184,283,128 -------------- TOTAL COMMON STOCKS (COST $232,538,601) ............................ 368,708,524 -------------- REGISTERED INVESTMENT COMPANY--5.8% 22,870,741 Dreyfus Government Prime Cash Management ....... 22,870,741 -------------- TOTAL REGISTERED INVESTMENT COMPANY (COST $22,870,741) ............................. 22,870,741 --------------
FACE VALUE ------------ U.S. TREASURY BILL--3.3% $ 13,000,000 0.162% * due 6/17/10 ++ ........................ 12,988,924 -------------- TOTAL U.S. TREASURY BILL (COST $12,990,321) ............................. 12,988,924 -------------- TOTAL INVESTMENTS (COST $268,399,663**) ................................. 103.4% 404,568,189 UNREALIZED DEPRECIATION ON FORWARD CONTRACTS (NET) .... (1.2) (4,702,173) OTHER ASSETS AND LIABILITIES (NET) .................... (2.2) (8,675,789) ----- -------------- NET ASSETS ............................................ 100.0% $ 391,190,227 ===== ==============
---------- * RATE REPRESENTS ANNUALIZED YIELD AT DATE OF PURCHASE. ** AGGREGATE COST FOR FEDERAL TAX PURPOSES IS $268,399,663. + NON-INCOME PRODUCING SECURITY. ++ AT DECEMBER 31, 2009, LIQUID ASSETS TOTALLING $3,996,592 HAVE BEEN SEGREGATED TO COVER CERTAIN OPEN FORWARD CONTRACTS. ABBREVIATIONS: ADR -- AMERICAN DEPOSITORY RECEIPT SEE NOTES TO PORTFOLIO OF INVESTMENTS 7 TWEEDY, BROWNE VALUE FUND SECTOR DIVERSIFICATION December 31, 2009 (Unaudited)
PERCENTAGE OF VALUE SECTOR DIVERSIFICATION NET ASSETS (NOTE 1) ---------------------- ------------- ------------ COMMON STOCKS: Insurance ................................................. 14.0% $ 54,687,177 Food ...................................................... 9.4 36,912,632 Beverage .................................................. 8.9 34,845,921 Pharmaceuticals, Biotechnology & Life Sciences ............ 8.1 31,645,301 Energy .................................................... 7.8 30,461,352 Media ..................................................... 7.0 27,306,935 Capital Goods ............................................. 6.7 26,267,740 Transportation ............................................ 6.4 24,920,560 Diversified Financials .................................... 3.8 15,004,480 Food & Staples Retailing .................................. 3.3 12,721,100 Tobacco ................................................... 3.0 11,657,643 Materials ................................................. 2.9 11,471,040 Health Care Equipment & Services .......................... 2.6 10,270,638 Household & Personal Products ............................. 2.5 9,814,402 Consumer Durables & Apparel ............................... 1.7 6,600,788 Technology Hardware & Equipment ........................... 1.6 6,220,216 Banks ..................................................... 1.2 4,735,731 Automobiles & Components .................................. 1.1 4,194,684 Retailing ................................................. 1.0 3,935,001 Telecommunication Services ................................ 0.9 3,358,405 Real Estate ............................................... 0.4 1,676,778 ----- ------------ TOTAL COMMON STOCKS ....................................... 94.3 368,708,524 ----- ------------ REGISTERED INVESTMENT COMPANY ............................. 5.8 22,870,741 U.S. TREASURY BILL ........................................ 3.3 12,988,924 UNREALIZED DEPRECIATION ON FORWARD CONTRACTS (NET) ........ (1.2) (4,702,173) OTHER ASSETS AND LIABILITIES (NET) ........................ (2.2) (8,675,789) ----- ------------ NET ASSETS ................................................ 100.0% $391,190,227 ===== ============
PORTFOLIO COMPOSITION December 31, 2009 (Unaudited) (PIE CHART) FRANCE 6% GERMANY 11% JAPAN 2% NETHERLANDS 7% SOUTH KOREA 2% SPAIN 3% SWITZERLAND 8% UNITED KINGDOM 8% UNITED STATES 47% CASH EQUIVALENTS AND OTHER ASSETS AND LIABILITIES (NET)++ 6%
MEXICO 0%+
+ AMOUNT REPRESENTS LESS THAN 1% OF NET ASSETS ++ INCLUDES UNREALIZED APPRECIATION ON FORWARD CONTRACTS (NET) SEE NOTES TO PORTFOLIO OF INVESTMENTS 8 TWEEDY, BROWNE VALUE FUND SCHEDULE OF FORWARD EXCHANGE CONTRACTS December 31, 2009 (Unaudited)
CONTRACT VALUE ON VALUE CONTRACT ORIGINATION 12/31/09 UNREALIZED CONTRACTS VALUE DATE DATE (NOTE 1) GAIN (LOSS) --------- ---------- ------------- ------------- ----------- FORWARD EXCHANGE CONTRACTS TO BUY 2,300,000,000 South Korean Won ........................ 2/5/10 $ 1,986,869 $ 1,972,936 $ (13,933) ------------- ------------- ----------- TOTAL ................................................. $ 1,986,869 $ 1,972,936 $ (13,933) ============= ============= =========== FORWARD EXCHANGE CONTRACTS TO SELL 16,000,000 European Union Euro ..................... 2/5/10 $ (20,765,599) $ (22,954,937) $(2,189,338) 9,000,000 European Union Euro ..................... 5/4/10 (11,756,880) (12,909,052) (1,152,172) 5,500,000 European Union Euro ..................... 5/14/10 (7,478,845) (7,888,548) (409,703) 4,600,000 European Union Euro ..................... 7/20/10 (6,494,878) (6,595,634) (100,756) 9,000,000 European Union Euro ..................... 8/2/10 (12,813,210) (12,903,514) (90,304) 5,000,000 European Union Euro ..................... 8/30/10 (7,137,475) (7,167,439) (29,964) 13,500,000 European Union Euro ..................... 11/24/10 (19,950,437) (19,342,149) 608,288 1,750,000 Great Britain Pound Sterling ............ 5/18/10 (2,662,625) (2,823,532) (160,907) 4,000,000 Great Britain Pound Sterling ............ 8/2/10 (6,599,200) (6,450,639) 148,561 1,500,000 Great Britain Pound Sterling ............ 8/31/10 (2,470,523) (2,418,529) 51,994 1,200,000 Great Britain Pound Sterling ............ 11/24/10 (2,004,300) (1,933,742) 70,558 220,000,000 Japanese Yen ............................ 2/5/10 (2,471,077) (2,363,624) 107,453 4,250,000,000 South Korean Won ........................ 2/5/10 (3,104,456) (3,645,644) (541,188) 7,300,000,000 South Korean Won ........................ 5/4/10 (5,434,783) (6,237,376) (802,593) 4,500,000 Swiss Franc ............................. 8/2/10 (4,240,482) (4,363,041) (122,559) 4,500,000 Swiss Franc ............................. 8/30/10 (4,257,695) (4,365,602) (107,907) 5,000,000 Swiss Franc ............................. 10/19/10 (4,888,063) (4,855,766) 32,297 ------------- ------------- ----------- TOTAL ................................................. $(124,530,528) $(129,218,768) $(4,688,240) ============= ============= =========== UNREALIZED DEPRECIATION ON FORWARD CONTRACTS (NET) .... $(4,702,173) ===========
SEE NOTES TO PORTFOLIO OF INVESTMENTS 9 TWEEDY, BROWNE WORLDWIDE HIGH DIVIDEND YIELD VALUE FUND PORTFOLIO OF INVESTMENTS December 31, 2009 (Unaudited)
VALUE SHARES (NOTE 1) ------------ -------------- COMMON STOCKS--88.7% CANADA--1.7% 56,100 IGM Financial, Inc. ............................ $ 2,269,472 -------------- FRANCE--6.7% 43,100 CNP Assurances ................................. 4,190,097 72,880 Total SA ....................................... 4,705,899 -------------- 8,895,996 -------------- GERMANY--3.2% 27,200 Muenchener Rueckversicherungs-Gesellschaft AG .. 4,240,841 -------------- ITALY--4.1% 133,905 Eni SPA ........................................ 3,419,718 246,275 Mediaset SPA ................................... 2,026,409 -------------- 5,446,127 -------------- MEXICO--5.3% 1,235,000 Embotelladoras Arca SA de CV ................... 4,114,964 653,600 Kimberly-Clark de Mexico SA de CV, Class A ..... 2,932,224 -------------- 7,047,188 -------------- NETHERLANDS--5.8% 47,880 Akzo Nobel NV .................................. 3,187,466 138,105 Unilever NV, CVA ............................... 4,507,796 -------------- 7,695,262 -------------- SOUTH KOREA--1.3% 108,565 SK Telecom Company Ltd., ADR ................... 1,765,267 -------------- SPAIN--1.9% 88,745 Telefonica SA .................................. 2,485,405 -------------- SWITZERLAND--4.8% 42,200 Nestle SA, Registered .......................... 2,049,277 79,325 Novartis AG, Registered ........................ 4,335,538 -------------- 6,384,815 -------------- UNITED KINGDOM--17.9% 704,825 BAE Systems PLC ................................ 4,091,799 231,230 BP PLC ......................................... 2,240,420 164,025 Daily Mail & General Trust, Class A ............ 1,107,715 228,700 Diageo PLC, Sponsored ADR ...................... 4,003,405 209,097 GlaxoSmithKline PLC ............................ 4,455,447 293,700 Pearson PLC .................................... 4,225,866 1,625,945 Vodafone Group PLC ............................. 3,773,086 -------------- 23,897,738 -------------- UNITED STATES--36.0% 33,255 3M Company ..................................... 2,749,191 132,645 Altria Group, Inc. ............................. 2,603,821
VALUE SHARES (NOTE 1) ------------ -------------- UNITED STATES (CONTINUED) 115,800 AT&T, Inc. ..................................... $ 3,245,874 60,460 Coca-Cola Company/The .......................... 3,446,220 67,215 ConocoPhillips ................................. 3,432,670 97,610 Emerson Electric Company ....................... 4,158,186 80,768 Exelon Corporation ............................. 3,947,132 76,600 Federated Investors, Inc., Class B ............. 2,106,500 96,010 Genuine Parts Company .......................... 3,644,540 93,055 Home Depot, Inc. ............................... 2,692,081 53,520 Johnson & Johnson .............................. 3,447,223 51,625 Norfolk Southern Corporation ................... 2,706,183 81,745 Philip Morris International, Inc. .............. 3,939,292 62,440 Reynolds American, Inc. ........................ 3,307,447 90,360 Sysco Corporation .............................. 2,524,658 -------------- 47,951,018 -------------- TOTAL COMMON STOCKS (COST $106,658,886) ............................ 118,079,129 -------------- REGISTERED INVESTMENT COMPANY--5.1% 6,752,094 Dreyfus Government Prime Cash Management ....... 6,752,094 -------------- TOTAL REGISTERED INVESTMENT COMPANY (COST $6,752,094) .............................. 6,752,094 --------------
FACE VALUE ------------ TREASURY BILLS--4.4% GERMANY--3.3% E 3,000,000 0.286% * due 1/13/10 ........................... 4,303,821 -------------- UNITED STATES--1.1% $ 1,500,000 0.162% * due 6/17/10 ........................... 1,498,722 -------------- TOTAL TREASURY BILLS (COST $5,955,968) .............................. 5,802,543 -------------- TOTAL INVESTMENTS (COST $119,366,948 **) ............................. 98.2% 130,633,766 OTHER ASSETS AND LIABILITIES (NET) .................... 1.8 2,413,059 ----- -------------- NET ASSETS ............................................ 100.0% $ 133,046,825 ===== ==============
---------- * RATE REPRESENTS ANNUALIZED YIELD AT DATE OF PURCHASE. ** AGGREGATE COST FOR FEDERAL TAX PURPOSES IS $119,366,948. ABBREVIATIONS: ADR -- AMERICAN DEPOSITORY RECEIPT CVA -- CERTIFICAATEN VAN AANDELEN (SHARE CERTIFICATES) SEE NOTES TO PORTFOLIO OF INVESTMENTS 10 TWEEDY, BROWNE WORLDWIDE HIGH DIVIDEND YIELD VALUE FUND SECTOR DIVERSIFICATION December 31, 2009 (Unaudited)
PERCENTAGE OF VALUE SECTOR DIVERSIFICATION NET ASSETS (NOTE 1) ---------------------- ------------- ------------ COMMON STOCKS: Energy .......................................... 10.4% $ 13,798,707 Pharmaceuticals, Biotechnology & Life Sciences .. 9.2 12,238,208 Beverage ........................................ 8.7 11,564,589 Telecommunication Services ...................... 8.5 11,269,632 Capital Goods ................................... 8.3 10,999,176 Tobacco ......................................... 7.4 9,850,560 Insurance ....................................... 6.3 8,430,938 Media ........................................... 5.4 7,359,990 Food ............................................ 4.9 6,557,073 Retailing ....................................... 4.8 6,336,621 Diversified Financials .......................... 3.3 4,375,972 Utilities ....................................... 3.0 3,947,132 Materials ....................................... 2.4 3,187,466 Household & Personal Products ................... 2.2 2,932,224 Transportation .................................. 2.0 2,706,183 Food & Staples Retailing ........................ 1.9 2,524,658 ----- ------------ TOTAL COMMON STOCKS ............................. 88.7 118,079,129 ----- ------------ REGISTERED INVESTMENT COMPANY ................... 5.1 6,752,094 TREASURY BILLS .................................. 4.4 5,802,543 OTHER ASSETS AND LIABILITIES (NET) .............. 1.8 2,413,059 ----- ------------ NET ASSETS ...................................... 100.0% $133,046,825 ===== ============
PORTFOLIO COMPOSITION December 31, 2009 (Unaudited) (PIE CHART) CANADA 2% FRANCE 7% GERMANY 3% ITALY 4% MEXICO 5% NETHERLANDS 6% SOUTH KOREA 1% SPAIN 2% SWITZERLAND 5% UNITED KINGDOM 18% UNITED STATES 36% CASH EQUIVALENTS AND OTHER ASSETS AND LIABILITIES (NET) 11%
SEE NOTES TO PORTFOLIO OF INVESTMENTS 11 TWEEDY, BROWNE FUND INC. NOTES TO PORTFOLIO HOLDINGS (UNAUDITED) 1. VALUATION AND INVESTMENT PRACTICES PORTFOLIO VALUATION Generally, the Funds' investments are valued at market value or at fair value as determined by, or under the direction of, the Company's Board of Directors. Portfolio securities and other assets, listed on a U.S. national securities exchange, comparable foreign securities exchange or through any system providing for contemporaneous publication of actual prices (and not subject to restrictions against sale by the Fund on such exchange or system) are valued at the last sale price prior to the close of regular trading on the principal exchange or system for such security or asset or, if applicable, the NASDAQ Official Closing Price ("NOCP"). Portfolio securities and other assets, which are readily marketable but for which there are no reported sales on the valuation date, whether because they are not traded in a system providing for same day publication of sales or because there were no sales reported on such date, are generally valued at the mean between the last asked price and the last bid price prior to the close of regular trading. Securities and other assets for which current market quotations are not readily available and those securities which are generally not readily marketable due to significant legal or contractual restrictions, will be valued at fair value as determined by the Investment Adviser under the direction of the Board of Directors. Securities and other assets for which the most recent market quotations may not be reliable (including because the last sales price does not reflect current market value at the time of valuing the Funds' asset due to developments since such last price) may be valued at fair value if the Investment Adviser concluded that fair valuation will likely result in a more accurate net asset valuation. Debt securities purchased with a remaining maturity of more than 60 days are valued through pricing obtained by pricing services approved by the Funds' Board of Directors. Debt securities purchased with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value, or by reference to other factors (i.e., pricing services or dealer quotations) by the Investment Adviser. FAIR VALUE MEASUREMENTS The inputs and valuations techniques used to measure fair value of the Funds' net assets are summarized into three levels as described in the hierarchy below: - Level 1 - quoted prices in active markets for identical securities - Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) - Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. A summary of the inputs used to value the Funds' assets carried at fair value as of December 31, 2009 is as follows:
GLOBAL VALUE FUND ------------------------------------------------------------- TOTAL MARKET LEVEL 2 LEVEL 3 VALUE AT LEVEL 1 SIGNIFICANT SIGNIFICANT DECEMBER 31, QUOTED OBSERVABLE UNOBSERVABLE 2009 PRICE INPUT INPUT ------------ -------------- ------------ ------------ Investments in Securities: Equity Securities Common Stocks Canada $ 71,597,310 $ 71,597,310 $ -- $ -- Czech Republic 1,338,234 1,338,234 -- -- Finland 182,206,235 182,206,235 -- -- France 314,379,229 314,379,229 -- -- Germany 601,415,642 601,415,642 -- -- Greece 11,027,867 11,027,867 -- -- Hong Kong 35,244,000 35,244,000 -- -- Ireland 95,667 -- -- 95,667 Italy 102,353,713 102,353,713 -- -- Japan 258,817,366 249,068,998 9,748,368 -- Mexico 208,806,887 208,806,887 -- -- Netherlands 476,767,699 476,767,699 -- -- Norway 76,474,964 76,474,964 -- -- Singapore 90,759,578 90,759,578 -- -- South Korea 156,098,278 156,098,278 -- -- Spain 124,708,401 124,708,401 -- -- Sweden 267,990 267,990 -- -- Switzerland 611,177,903 542,609,967 68,567,936 -- United Kingdom 333,899,923 333,899,923 -- -- United States 213,503,297 213,503,297 -- --
12 TWEEDY, BROWNE FUND INC. NOTES TO PORTFOLIO HOLDINGS (UNAUDITED)
GLOBAL VALUE FUND (continued) ------------------------------------------------------------- TOTAL MARKET LEVEL 2 LEVEL 3 VALUE AT LEVEL 1 SIGNIFICANT SIGNIFICANT DECEMBER 31, QUOTED OBSERVABLE UNOBSERVABLE 2009 PRICE INPUT INPUT -------------- -------------- ------------ ------------ Preferred Stocks $ 12,742,469 $ 12,742,469 $ -- $ -- Registered Investment Company 272,339,053 272,339,053 -- -- U.S. Treasury Bill 114,956,300 -- 114,956,300 -- -------------- -------------- ------------ ------- Total Investments in Securities 4,270,978,005 4,077,609,734 193,272,604 95,667 Other Financial Instruments: Asset Unrealized appreciation of forward exchange contracts 14,059,766 -- 14,059,766 -- Liability Unrealized depreciation of forward exchange contracts (89,158,285) -- (89,158,285) -- -------------- -------------- ------------ ------- TOTAL $4,195,879,486 $4,077,609,734 $118,174,085 $95,667 ============== ============== ============ =======
GLOBAL VALUE FUND II - CURRENCY UNHEDGED -------------------------------------------------------- TOTAL MARKET LEVEL 2 LEVEL 3 VALUE AT LEVEL 1 SIGNIFICANT SIGNIFICANT DECEMBER 31, QUOTED OBSERVABLE UNOBSERVABLE 2009 PRICE INPUT INPUT ------------ ----------- ------------ ------------ Investments in Securities: Equity Securities Common Stocks Finland $ 77,373 $ 77,373 $ -- $-- France 832,203 832,203 -- -- Germany 1,048,611 1,048,611 -- -- Hong Kong 123,200 123,200 -- -- Italy 755,914 755,914 -- -- Japan 705,873 618,221 87,652 -- Mexico 239,319 239,319 -- -- Netherlands 855,568 855,568 -- -- Singapore 77,125 77,125 -- -- South Korea 236,191 236,191 -- -- Spain 122,567 122,567 -- -- Switzerland 1,320,529 1,320,529 -- -- United Kingdom 1,186,646 1,186,646 -- -- United States 119,915 119,915 -- -- Preferred Stock 151,702 151,702 -- -- Registered Investment Company 15,228,128 15,228,128 -- -- ----------- ----------- ------- --- TOTAL INVESTMENTS IN SECURITIES $23,080,864 $22,993,212 $87,652 $-- =========== =========== ======= ===
13 TWEEDY, BROWNE FUND INC. NOTES TO PORTFOLIO HOLDINGS (UNAUDITED)
VALUE FUND -------------------------------------------------------- TOTAL MARKET LEVEL 2 LEVEL 3 VALUE AT LEVEL 1 SIGNIFICANT SIGNIFICANT DECEMBER 31, QUOTED OBSERVABLE UNOBSERVABLE 2009 PRICE INPUT INPUT ------------ ------------ ----------- ------------ Investments in Securities: Equity Securities Common Stocks France $ 22,232,014 $ 22,232,014 $ -- $-- Germany 44,379,812 44,379,812 -- Japan 9,126,602 9,126,602 -- -- Mexico 1,431,607 1,431,607 -- -- Netherlands 25,269,704 25,269,704 -- -- South Korea 8,094,136 8,094,136 -- -- Spain 9,713,438 9,713,438 -- -- Switzerland 32,635,172 32,635,172 -- -- United Kingdom 31,542,911 31,542,911 -- -- United States 184,283,128 182,994,830 1,288,298 -- Registered Investment Company 22,870,741 22,870,741 -- U.S. Treasury Bill 12,988,924 -- 12,988,924 -- ------------ ------------ ----------- --- Total Investments in Securities 404,568,189 390,290,967 14,277,222 -- Other Financial Instruments: Asset Unrealized appreciation of forward exchange contracts 1,019,151 -- 1,019,151 -- Liability Unrealized depreciation of forward exchange contracts (5,721,324) -- (5,721,324) -- ------------ ------------ ----------- --- TOTAL $399,866,016 $390,290,967 $ 9,575,049 $-- ============ ============ =========== ===
WORLDWIDE HIGH DIVIDEND YIELD VALUE FUND -------------------------------------------------------- TOTAL MARKET LEVEL 2 LEVEL 3 VALUE AT LEVEL 1 SIGNIFICANT SIGNIFICANT DECEMBER 31, QUOTED OBSERVABLE UNOBSERVABLE 2009 PRICE INPUT INPUT ------------ ------------ ----------- ------------ Investments in Securities: Equity Securities Common Stocks Canada $ 2,269,472 $ 2,269,472 $ -- $-- France 8,895,996 8,895,996 -- -- Germany 4,240,841 4,240,841 -- -- Italy 5,446,127 5,446,127 -- -- Mexico 7,047,188 7,047,188 -- -- Netherlands 7,695,262 7,695,262 -- -- South Korea 1,765,267 1,765,267 -- -- Spain 2,485,405 2,485,405 -- -- Switzerland 6,384,815 6,384,815 -- -- United Kingdom 23,897,738 23,897,738 -- -- United States 47,951,018 47,951,018 -- -- Registered Investment Company 6,752,094 6,752,094 -- -- Treasury Bills Germany 4,303,821 -- 4,303,821 -- United States 1,498,722 -- 1,498,722 -- ------------ ------------ ---------- --- TOTAL INVESTMENTS IN SECURITIES $130,633,766 $124,831,223 $5,802,543 $-- ============ ============ ========== ===
14 TWEEDY, BROWNE FUND INC. NOTES TO PORTFOLIO HOLDINGS (UNAUDITED) The following is a reconciliation of the Global Value Fund's Level 3 investments for which significant unobservable inputs were used to determine fair value.
EQUITY SECURITIES --------------------- UNITED TOTAL IRELAND KINGDOM ----------- ------- ----------- Balance as of March 31, 2009 $ 93,798 $88,530 $ 5,268 Accrued discounts/premiums -- -- -- Realized gain (loss) (1,344,549) -- (1,344,549) Change in unrealized appreciation (depreciation) 1,346,418 7,137 1,339,281 Net purchases (sales) -- -- -- Transfer in and/or out of Level 3 -- -- -- ----------- ------- ----------- Balance as of December 31, 2009 $ 95,667 $95,667 $ -- =========== ======= ===========
FOREIGN CURRENCY The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates prevailing at the end of the period, and purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Unrealized gains and losses which result from changes in foreign currency exchange rates have been included in the unrealized appreciation (depreciation) of currencies and net other assets. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investments, securities transactions, foreign currency transactions and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amount actually received. The portion of foreign currency gains and losses related to fluctuation in the exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gains and losses on investment securities sold. FORWARD EXCHANGE CONTRACTS The Global Value Fund and Value Fund may enter into forward exchange contracts for non-trading purposes in order to reduce their exposure to fluctuations in foreign currency exchange on their portfolio holdings. Forward exchange contracts are valued at the forward rate and are marked-to-market daily. The change in market value is recorded by each of the Funds as an unrealized gain or loss. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time that it was opened and the value of the contract at the time that it was closed. The use of forward exchange contracts does not eliminate fluctuations in the underlying prices of the Funds' investment securities, but it does establish a rate of exchange that can be achieved in the future. Although forward exchange contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts. SECURITIES TRANSACTIONS Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. 2. UNREALIZED APPRECIATION/(DEPRECIATION) At December 31, 2009, the aggregate gross unrealized appreciation for all securities, in which there was an excess of value over tax cost on the Global Value Fund, Global Value Fund II - Currency Unhedged, Value Fund and Worldwide High Dividend Yield Value Fund, was $1,643,350,283, $278,495, $140,301,151 and $14,829,112, respectively. The aggregate gross unrealized depreciation for all securities, in which there was an excess of tax cost over value for the Global Value Fund, Global Value Fund II - Currency Unhedged, Value Fund and Worldwide High Dividend Yield Value Fund, was $104,266,465, $96,353, $4,132,625 and $3,562,294, respectively. 15 ITEM 2. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Tweedy, Browne Fund Inc. By (Signature and Title)* /s/ Thomas H. Shrager ---------------------------------------- Thomas H. Shrager, President (principal executive officer) Date February 25, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Thomas H. Shrager ---------------------------------------- Thomas H. Shrager, President (principal executive officer) Date February 25, 2010 By (Signature and Title)* /s/ Robert Q. Wyckoff, Jr. ---------------------------------------- Robert Q. Wyckoff, Jr., Treasurer (principal financial officer) Date February 25, 2010 * Print the name and title of each signing officer under his or her signature.