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 industrials sectors and market favor for speculative stocks. 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 Small-Cap Fund highlighted Tripadvisor, Inc. (NASDAQ:TRIP) as a notable contributor. Tripadvisor, Inc. (NASDAQ:TRIP) is a US-based online travel company that offers travel guidance products and services, which negatively impacted the Fund’s performance in that quarter. On July 13, 2026, Tripadvisor, Inc. (NASDAQ:TRIP) closed at $14.40 per share, reflecting a market capitalization of $1.68 billion. Tripadvisor, Inc. (NASDAQ:TRIP) posted a one-month return of 12.41%, while its shares lost 21.05% over the past 52 weeks.
Longleaf Partners Small-Cap Fund stated the following regarding Tripadvisor, Inc. (NASDAQ:TRIP) in its Q2 2026 investor update:
“Tripadvisor, Inc. (NASDAQ:TRIP) – Digital experiences, dining and travel company Tripadvisor contributed in the quarter. As mentioned above, the main news in the quarter was that the company announced the sale of its TheFork business to American Express. The price was well above depressed market expectations and closer to our opinion of fair value. The closing of the deal will put the company into a strong net cash position and open up additional strategic options from a position of strength. No matter what happens strategically, Tripadvisor can grow its own FCF per share more than the market expects as its growing Viator business crosses over its shrinking Tripadvisor business.”
Tripadvisor, Inc. (NASDAQ:TRIP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Tripadvisor, Inc. (NASDAQ:TRIP) at the end of the first quarter, compared to 43 in the previous quarter. In Q1 2026, Tripadvisor, Inc.’s (NASDAQ:TRIP) revenue fell 4% year-over-year to $382 million, while its consolidated adjusted EBITDA of $22 million surpassed expectations. While we acknowledge the risk and potential of Tripadvisor, Inc. (NASDAQ:TRIP) 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 Tripadvisor, Inc. (NASDAQ:TRIP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Tripadvisor, Inc. (NASDAQ:TRIP) and shared Middle Coast Investing’s views on the company. 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.
