Empire State Realty Trust (ESRT) Stock is Nearing True Value

Longleaf Partners, managed by Southeastern Asset Management, released its second-quarter 2026 investor letter for its “Small-Cap 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, market winners have gone far higher than fair value. The Fund returned -2.47% in the quarter, underperforming the 21.49% return for the Russell 2000 Index and the 17.19% gain for the Russell 2000 Value Index. The underperformance in the quarter was driven by unexpected moves primarily in the IT and...