Longleaf Partners, managed by Southeastern Asset Management, released its fourth-quarter 2025 investor letter for “Longleaf Partners Global Fund”. A copy of the letter can be downloaded here. The Fund returned 5.27% in the quarter, compared to the MSCI World’s 3.12 % and the MSCI World Value’s 3.34% return. The Fund returned 16.72% for the year, compared to 21.09% and 20.79% returns, respectively, for the indexes. 2025 was a solid year for the Fund, celebrating Southeastern’s 50th anniversary and the 25th anniversary of the global strategy. Underweight exposure in Financials and choosing to hold cash, along with a lack of late-in-the-cycle Industrials, led to the underperformance of the Fund in the year. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Longleaf Partners Global Fund highlighted MGM Resorts International (NYSE:MGM). Based in Las Vegas, Nevada, MGM Resorts International (NYSE:MGM) is a leading gaming and entertainment company. On March 19, 2026, MGM Resorts International (NYSE:MGM) stock closed at $37.14 per share. One-month return of MGM Resorts International (NYSE:MGM) was 0.95%, and its shares gained 18.20% over the past 52 weeks. MGM Resorts International (NYSE:MGM) has a market capitalization of $10.158 billion.
Longleaf Partners Global Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its fourth quarter 2025 investor letter:
“IAC, MGM Resorts International (NYSE:MGM) and Angi – The related group of IAC, MGM Resorts and Angi contributed strongly in aggregate this year. Digital holding company IAC has signaled its plans to dispose of all assets besides People Inc. and an approximate 25% stake in MGM. Chairman Barry Diller is focused on closing the valuation disconnect as no value has been ascribed by the markets to IAC’s assets beyond MGM for too long. Share repurchase and increasing the stake in MGM are the main capital allocation options, and the company is already acting on both. One specific simplification move IAC made this year was the spinoff of Angi, the home services marketplace. We purchased more Angi shares post-spin at a depressed price and then sold our position as evidence of their multi-year turnaround heading down the right path caused the stock to reach our appraisal. Casino operator MGM Resorts had a relatively weaker 2025 in Las Vegas due to difficult comparisons after multiple years of strength. A significant turnaround at BetMGM plus strong performances at non-Las Vegas “regional” properties and Macau helped steady the consolidated business throughout the year. The general market narrative for most of the year has been that Las Vegas has peaked for various reasons. We, and IAC, believe Vegas cannot be replicated anywhere in the world, and MGM has a great position as the market leader. Management has corrected some pricing mistakes while making moves to narrow their focus. A recent sale of one of their lower quality properties for a higher multiple than where the consolidated business trades, as well as withdrawing their New York City casino bid, freed up more capital for a management team who has repurchased over 40% of their shares at extremely attractive prices over the past five years.”
MGM Resorts International (NYSE:MGM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held MGM Resorts International (NYSE:MGM) at the end of the fourth quarter, compared to 52 in the previous quarter. While we acknowledge the risk and potential of MGM Resorts International (NYSE:MGM) 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 MGM Resorts International (NYSE:MGM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MGM Resorts International (NYSE:MGM) and shared a list of most undervalued hotel stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
