Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Longleaf experienced several environments throughout its experience in small-cap investing. This year, the underlying developments in the Fund’s holdings were more promising than the actual stock price returns when compared to the target of inflation plus 10% and the unusual performance of the Russell 2000. In Q4 2025, the Fund returned 1.13% compared to 2.40% for the Russell 3000 Index and 2.19% for the Russell 2000 Index. The Fund’s yearly return was 7.56% compared to 17.15% and 12.81% return for the indexes, respectively. In 2025, Southeastern demonstrated strong performance by protecting investments during market volatility, emphasizing the value of owning solid, free cash flow-generating companies over speculative fads. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks like Park Hotels & Resorts Inc. (NYSE:PK). Park Hotels & Resorts Inc. (NYSE:PK) is one of the leading lodging real estate investment trusts. On February 24, 2026, Park Hotels & Resorts Inc. (NYSE:PK) stock closed at $11.27 per share. One-month return of Park Hotels & Resorts Inc. (NYSE:PK) was 5.03%, and its shares lost 8.67% over the past 52 weeks. Park Hotels & Resorts Inc. (NYSE:PK) has a market capitalization of $2.253 billion.
Longleaf Partners Small-Cap Fund stated the following regarding Park Hotels & Resorts Inc. (NYSE:PK) in its fourth quarter 2025 investor letter:
“Park Hotels & Resorts – Hotel REIT Park Hotels & Resorts was a detractor for the year. The company sold off due to worries about how an uneasy macro environment will impact a leisure-focused hotel company. The iconic Hilton Hawaiian Village, Park’s most valuable property, is still recovering from both a labor strike in 2024 and reduced Japanese inbound travel as a result of the weaker yen. The company has continued down the path of selling non-core hotels and has thus far received attractive prices, while share repurchases have also occurred. We sold our position earlier in the year due to a combination of recycling capital into better ideas and never getting our position to a normal weight.”
Park Hotels & Resorts Inc. (NYSE:PK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held Park Hotels & Resorts Inc. (NYSE:PK) at the end of the fourth quarter, up from 26 in the previous quarter. In Q4 2025, Park Hotels & Resorts Inc.’s (NYSE:PK) RevPAR was around $182, up nearly 1% year-over-year and nearly 3% excluding Royal Palm.vWhile we acknowledge the risk and potential of Park Hotels & Resorts Inc. (NYSE:PK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Park Hotels & Resorts Inc. (NYSE:PK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
