Longleaf Partners Global Fund, an independent investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 17.46% was recorded by the fund in the fourth quarter of 2020, outperforming its MSCI World benchmark that delivered a 13.96% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Longleaf Partners Global Fund, in their Q4 2020 investor letter, mentioned General Electric Company (NYSE: GE) and emphasized their views on the company. General Electric Company is a Boston, Massachusetts-based digital industrial company that currently has a $114.1 billion market capitalization. Since the beginning of the year, GE delivered a 20.28% return, impressively extending its 12-month gains to 70.47%. As of March 26, 2021, the stock closed at $12.99 per share.
Here is what Longleaf Partners Global Fund has to say about General Electric Company in their Q4 2020 investor letter:
“General Electric (GE) (-3%, -0.28%; 74%, 3.32%), the Aviation, Healthcare and Power conglomerate, was among the top two contributors in the fourth quarter after a very difficult first half. The company’s crown jewel Aviation business sells and maintains commercial and military jet engines. With air travel frozen, this year’s second quarter was its worst in over a century of operating history with a $680 million operating loss. 3Q revenues improved sequentially as some flights resumed but still declined 39% year-over-year. Yet GE Aviation earned a remarkable $356 million in the third quarter due to extreme cost discipline. With fewer expenses, the same world-class competitive position and favorable long-term air-travel growth prospects, Aviation should keep improving incrementally with the potential to emerge stronger than ever within several years. GE Healthcare revenues, excluding non-recurring ventilator sales for COVID treatment, also improved 3% year-over-year in an encouraging performance. GE also took steps to give back in 2020 by working to help develop thousands of ventilators to aid coronavirus patients. The stock has roughly doubled from its March low as business results improved, in large part due to CEO Larry Culp’s excellent management. Please stay tuned for the next episode of the Price-to-Value Podcast in which Vice-Chairman Staley Cates interviews Larry Culp on Lean manufacturing, GE’s culture, navigating COVID and his outlook for the business. The episode will air in January and will be available on our website at https://southeasternasset.com/podcasts/, as well as all major podcast streaming platforms.”
Our calculations show that General Electric Company (NYSE: GE) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, General Electric Company was in 69 hedge fund portfolios, compared to 45 funds in the third quarter. GE delivered a 21.97% return in the past 3 months.