5 Best Stock Picks of Mason Hawkins’ Southeastern Asset Management

2. Mattel, Inc. (NASDAQ:MAT)

Southeastern Asset Management’s Stake Value: $436,123,000

Percentage of Southeastern Asset Management’s 13F Portfolio: 7.31%

Number of Hedge Fund Holders: 29

Mattel, Inc. (NASDAQ:MAT) is a California-based children’s entertainment company that designs and sells toys, games, and consumer products worldwide, under the Barbie, Monster High, American Girl, Polly Pocket, Spirit, and Enchantimals brands. Mason Hawkins’ hedge fund boosted its Mattel, Inc. (NASDAQ:MAT) stake by 11% in Q4 2021, holding 20.2 million shares worth over $436 million, representing 7.31% of the total 13F portfolio. 

On April 27, Mattel, Inc. (NASDAQ:MAT) reported its Q1 financial results, posting earnings per share of $0.08, ahead of analysts’ predictions by $0.12. Revenue for the period climbed 19.11% year-over-year to $1.04 billion, above Street consensus by $123.35 million. 

According to the fourth quarter database of Insider Monkey, Mattel, Inc. (NASDAQ:MAT) was found in the public stock portfolios of 29 hedge funds, compared to 34 funds in the earlier quarter. John W. Rogers’ Ariel Investments is a significant position holder in the company, with 18.2 million shares worth $394 million. 

Here is what Longleaf Partners Small-Cap Fund Commentary has to say about Mattel, Inc. (NASDAQ:MAT) in its Q4 2021 investor letter:

“Mattel (24%, 1.40%; 16%, 0.96%), the global toy and media company, was a strong contributor in the fourth quarter and for the year. Despite store closures in Asia causing -20% regional revenues during the third quarter, Mattel’s consolidated sales still grew 8% due to its strong North American recovery. Barbie sales remain impressive as they have been for years, American Girl is finally returning to growth and Fisher Price is also recovering. The company is successfully passing through inflated costs with higher pricing and without losing volume. Despite the impressive results, the stock trades too low at less than 14x forward earnings, and that is before Mattel begins to monetize its massive non-earning asset Intellectual Property portfolio. Our appraisal of the value grew by more than 30% this year.”