Tweedy, Browne Company LLC, an investment management firm, published its “International Value Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A portfolio quarterly return of ‐2.43% was recorded by the fund for the third quarter of 2021, while its benchmark, the MSCI EAFE Index, by comparison, returned 1.47% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Tweedy, Browne Company, in its Q3 2021 investor letter, mentioned FMC Corporation (NYSE: FMC) and discussed its stance on the firm. FMC Corporation is a Philadelphia, Pennsylvania-based chemical manufacturing company with a $13.6 billion market capitalization. IBA delivered a -6.52% return since the beginning of the year, while its 12-month returns are down by -8.69%. The stock closed at $107.44 per share on December 09, 2021.
Here is what Tweedy, Browne Company has to say about FMC Corporation in its Q3 2021 investor letter:
“FMC Corp. provides crop chemicals for the agriculture industry. Crop chemicals protect farmers’ fields from insects, fungus, and weeds, which allows them to increase their crop yields. As a result, farmers are more than willing to pay a price premium for effective products. Similar to pharmaceutical companies, crop protection products also are often “patented,” which gives them pricing power. In addition, the development time and investment, combined with navigating the regulatory process in a variety of jurisdictions, and then achieving distribution at scale, provide immense barriers to entry in the industry. Small companies may be able to conduct research on active ingredients, but it will be difficult for them to “commercialize” them. Given all of this, FMC has enjoyed a high return on capital and has been a very profitable business, earning a 27% EBITDA margin and a 25% ROE including goodwill for the year 2020.
FMC is diversified geographically and by crop, which should serve to make it a less cyclical business. It also has, in our view, a very good new product pipeline, and aims to grow its revenues at 5% to 7% annually through 2023, and its EBITDA at 7% to 9% annually through 2023. The company also has had some insider purchases recently from both its CEO and CFO…” (Click here to see the full text)
Based on our calculations, FMC Corporation (NYSE: FMC) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. IBA was in 28 hedge fund portfolios at the end of the third quarter of 2021, compared to 33 funds in the previous quarter. FMC Corporation (NYSE: FMC) delivered a 10.19% return in the past 3 months.
FMC Corp. managed to land in the Top 10 Stock Picks of Charles Paquelet’s Skylands Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.
Disclosure: None. This article is originally published at Insider Monkey.