5 Stocks to Buy According to Mason Hawkins’ Southeastern Asset Management

3. Mattel, Inc. (NASDAQ:MAT)

Southeastern Asset Management’s Stake Value: $340.57 million

Southeastern Asset Management’s 13F Portfolio: 6.46%

Number of Hedge Fund Holders: 34

Up next is Mattel, Inc. (NASDAQ:MAT), a children’s entertainment company that makes toys and other consumer goods. The firm was found in the portfolio of 34 hedge funds at the close of the third quarter. This shows a positive trend from the preceding quarter, where 25 hedge funds were bullish on Mattel, Inc. (NASDAQ:MAT).

Mattel, Inc. (NASDAQ:MAT) represents 6.46% of Mason Hawkins’ portfolio, with 8.34 million shares valued at $340.57 million.

Investment firm Longleaf Partners Fund mentioned Mattel, Inc. (NASDAQ:MAT) in its third-quarter investor letter. Here’s what the fund said:

“Mattel (-8%, -0.51%), the global toy and intellectual property franchisor, detracted despite strong quarterly performance that increased our appraisal of the value by 5%. Sales grew 40% above weak 2020 comps, with particularly encouraging results in American Girl, the doll brand that had been struggling for years before CEO Ynon Kreiz initiated a successful turnaround. Despite some cost inflation, the consolidated gross margin increased nearly 4%. We think Mattel will earn $1.50/share next year and the multiple remains too low despite two years of price appreciation. The company has recently announced 13 feature films, 18 TV shows, and 24 other projects in development. The intellectual property (IP) efforts create substantial earnings power but haven’t contributed much yet. These are some of the best non-earning assets in our portfolio and we expect many of them to be realized within the next few years.”