Longleaf Partners Funds – Longleaf Partners Fund is an equity mutual fund that is managed and was founded by Southeastern Asset Management. It is a fund with a long tradition, as its launching goes back to 1987 when it was known under the name as Southeastern Asset Management Value Trust. The fund invests in mid and large-cap US stocks covering a broad range of industries, looking for stable enterprises with growing free cash flows. Southeastern Asset Management’s Founder and Chairman and also Co-Portfolio Manager of Longleaf Partners Fund is Mason Hawkings who has 47 years of professional investment experience. He earned his BA in Finance from the University of Florida, and an MBA in Finance from the University of Georgia. Recently, Longleaf Partners Fund released its Q1 2019 Investor Letter, a copy of which you can download below. The fund reported a quarterly return of 11.88%, underperforming its benchmark, the S&P 500, which delivered 13.65%, but exceeding its annual goal of inflation plus 10%. In the letter, it also disclosed its average annual total return since inception of 9.85%.
Longleaf Partners Fund gained 11.88%, surpassing our annual goal of inflation plus 10% in the first quarter but underperforming the S&P 500 Index’s 13.65% return. The market’s rebound, following a double-digit fourth quarter decline in 2018, provided a tailwind. Almost all of the stocks in the portfolio made gains.
Even as the issues of global economic slowdown, tariff and trade disruptions, and geopolitical unrest remained unresolved, the investor concern that dominated late 2018 appeared to dissipate. We have little insight into how macro questions about trade, U.S. and China economic growth, and inverted yield curves and trillions in negative yielding debt will be answered, but we are confident these uncertainties will continue to provide opportunities to disciplined, long-term business owners like ourselves.
You can download a copy of Longleaf Partners Fund’s Q1 2019 Investor Letter here: