Longleaf Partners, managed by Southeastern Asset Management, released its second-quarter 2026 investor letter for its “Partners Fund”. A copy of the letter can be downloaded here. The letter states that the portfolio holdings are attractive now based on both P/V and P/FCF metrics. However, the Fund returned 3.87% in the quarter, significantly lagging the S&P 500’s 15.20% return and the Russell 1000 Value Index’s 13.87% gain. An underweight in Information Technology (IT) primarily contributed to the underperformance. The market’s preference for overvalued stocks in Industrials and other sectors led to inflated multiples, overshadowing real earnings power. The Firm’s investment approach focuses on median, unweighted multiples, prioritizing growth in free cash flow per share, the potential for multiple expansion, and strategic initiatives. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Longleaf Partners Fund highlighted Avantor, Inc. (NYSE:AVTR). Headquartered in Radnor, Pennsylvania, Avantor, Inc. (NYSE:AVTR) provides mission-critical products and services to biotechnology, education, and pharmaceutical companies. On July 10, 2026, Avantor, Inc. (NYSE:AVTR) closed at $10.39 per share. One-month return of Avantor, Inc. (NYSE:AVTR) was 10.35%, and its shares lost 42.96% over the past 52 weeks. Avantor, Inc. (NYSE:AVTR) has a market capitalization of $7.09 billion.
Longleaf Partners Fund stated the following regarding Avantor, Inc. (NYSE:AVTR) in its Q2 2026 investor update:
“Avantor, Inc. (NYSE:AVTR) – Life-sciences company Avantor contributed in the quarter. We are beginning to see stabilization, and new CEO Emmanuel Ligner is guiding to revenue growth and strong FCF generation in 2H26. Book to bill was above one, which is a solid leading indicator, and the new management team is making progress in operational initiatives including a new website design at VWR and improved ship to order patterns in the Bioprocessing business. Merck KGaA’s recent purchase of Bio-Techne for a solid teens EBITDA multiple also highlights the ongoing attractiveness of the space despite slower than normal near-term revenue growth.”
Avantor, Inc. (NYSE:AVTR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 40 hedge fund portfolios held Avantor, Inc. (NYSE:AVTR) at the end of the fourth quarter, compared to 50 in the previous quarter. In Q1 2026, Avantor, Inc. (NYSE:AVTR) reported $1.58 billion of revenue, which was down 4% on an organic basis and flat year-over-year on a reported basis. While we acknowledge the risk and potential of Avantor, Inc. (NYSE:AVTR) 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 Avantor, Inc. (NYSE:AVTR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Avantor, Inc. (NYSE:AVTR) and shared the list of best stocks to buy under $10. In addition, please check out our hedge fund investor letters Q2 2026 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.
