Is it Wise to Invest in BASF SE (BASFY)?

Tweedy, Browne Company LLC, an investment management firm, published its “International Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A portfolio quarterly return of 5.14% was recorded by the fund for the fourth quarter of 2021, while its benchmark, the MSCI EAFE Index, by comparison, returned 4.21% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Tweedy Browne Company, in its Q4 2021 investor letter, mentioned BASF SE (NYSE:BASFY) and discussed its stance on the firm. Founded in 1865, BASF SE (NYSE:BASFY) is a Ludwigshafen, Germany-based multinational chemical company with a $56.1 billion market capitalization, and is currently spearheaded by its CEO, Martin Brudermüller. BASF SE (NYSE:BASFY) delivered a -12.78% return since the beginning of the year, while its 12-month returns are down by -28.23%. The stock closed at $15.29 per share on March 16, 2022.

Here is what Tweedy Browne Company has to say about BASF SE (NYSE:BASFY) in its Q4 2021 investor letter:

“With respect to ESG issues that arose as a part of our research process during the quarter, two of the Funds’ portfolio holdings took notable steps to address environmental sustainability. In addition, we engaged with two other companies regarding capital allocation. BASF, the large German chemical company, made a decision to carve out a business related to internal combustion engines and began investing significant amounts to develop a battery business. The company also committed to carbon reduction goals of net zero emissions by 2050. The CEO told us of the importance of this battery initiative in helping customers to meet their commitments to electromobility, but indicated the company will only make investments that have a visible return, making the company’s sustainability strategy more flexible and less risky in terms of profitability. In our view, this would appear to be a financially prudent step in reducing the company’s transition risk as the world continues to move toward a lower carbon economy, and should not compromise the compound of the company’s intrinsic value.”

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Our calculations show that BASF SE (NYSE:BASFY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. BASF SE (NYSE:BASFY) was in 1 hedge fund portfolio at the end of the fourth quarter of 2021, compared to 1 fund in the previous quarter. BASF SE (NYSE:BASFY) delivered a -9.47% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.