Mason Hawkins’ Southeastern Asset Management Raised Stake in Texas Industries

Mason Hawkins’ Southeastern Asset Management increased its activist stake in Texas Industries Inc. (TXI) to 29.3%. According to the firm’s amended 13D filing on November 28th, Southeastern Asset Management now has 8.18 million shares in TXI, which is a 5% increase in its position at the end of the third quarter. Southeastern Asset Management bought those additional shares from November 23 to 28, at about $22.50 per share. Now TXI is trading at $23, near its 2-year low. The stock has already lost 50% so far in 2011.

Seven hedge funds invested in TXI in the second quarter. Mason Hawkins’ Southeastern Asset Management took the largest chunk at that time, with 5.94 million shares in the stock. Ken Fisher’s Fisher Asset Management had 1.03 million shares. Chuck Royce’s Royce & Associates had 429 thousand shares.

Southeastern Asset Management was founded in 1975 by Mason Hawkins. As of year-end 2006, the firm had $39.8 billion under control on behalf of both institutional and retail investors. Mason Hawkins graduated from University of Florida with a Bachelor’s degree in Finance in 1970 and an MBA degree from University of Georgia in 1971. After graduation, he served as director of research in First Tennessee Investment Management and Atlantic National Bank. In 1975, Mason Hawkins founded Southeastern Asset Management with two partners, but both of them left the firm in early 80’s.

Per Yahoo! Finance, Texas Industries, Inc., “together with its subsidiaries, engages in the manufacture and sale of heavy construction materials in the southwestern United States. It operates in three segments: Cement, Aggregates, and Consumer Products. The Cement segment produces gray Portland cement; and specialty cements, such as masonry and oil well cements. This segment’s products are primarily sold to customers in the construction industry. The Aggregates segment offers natural aggregates, such as sand, gravel, and crushed limestone; and expanded shale and clay, a specialty lightweight aggregate product. This segment’s products are distributed to trade customers principally by contract or customer-owned haulers, and rail. The Consumer Products segment produces ready-mix concrete, packaged concrete mix, mortar, sand, and related products. This segment’s products are sold by the retailers to contractors, distributors, and property owners. The company was founded in 1946 and is based in Dallas, Texas.”