What Makes Mattel (MAT) a Fundamentally Strong Company?

Longleaf Partners, managed by Southeastern Asset Management, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund returned 3.35% in the quarter, compared to the S&P 500’s 2.66% and the Russell 1000 Value Index’s 3.81% return. 2025 was a challenging year for the firm, as it did not have any standout performers. Approximately 5% of the portfolio gained 20% or more, while 35% of the S&P 500 hit that level. The overall market dynamic drove the Fund’s underperformance. The firm focuses on actions to strengthen portfolio outcomes rather than chasing winners at the wrong time. The firm reiterates that building a portfolio of real companies on offense in a period of excessive speculation will benefit all markets. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as Mattel, Inc. (NASDAQ:MAT). Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment company. On January 16, 2026, Mattel, Inc. (NASDAQ:MAT) stock closed at $21.04 per share. One-month return of Mattel, Inc. (NASDAQ:MAT) was 6.26%, and its shares gained 17.35% of their value over the last 52 weeks. Mattel, Inc. (NASDAQ:MAT) has a market capitalization of $6.779 billion.

Longleaf Partners Fund stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its fourth quarter 2025 investor letter:

“Mattel, Inc. (NASDAQ:MAT) – Children’s toy, media, and consumer products creator Mattel was a contributor for the quarter and the year. The company is in its strongest position in over 10 years, and there are multiple ways to win. Over 80% of Mattel’s value comes from growing power brands like Hot Wheels, Barbie, and UNO. Mattel has a strong balance sheet which allowed material stock repurchases of $600 million in 2025, and we believe additional share repurchase will come at these discounted prices in 2026. Fundamentally, the toy business continues to grow and gross margins remain strong at 50%. Mattel has a promising owned IP (intellectual property) outlook for 2026 with the Masters of the Universe and Matchbox movies, along with two video games, being released.”

Jim Cramer On Mattel (MAT) – Go To Grok, Hasbro’s Ahead

Mattel, Inc. (NASDAQ:MAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 34 hedge fund portfolios held Mattel, Inc. (NASDAQ:MAT) at the end of the third quarter, up from 33 in the previous quarter. While we acknowledge the risk and potential of Mattel, Inc. (NASDAQ:MAT) 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 Mattel, Inc. (NASDAQ:MAT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Mattel, Inc. (NASDAQ:MAT) and shared the list of most undervalued stocks under $20 to buy. In Q3 2025, Mattel, Inc. (NASDAQ:MAT) detracted from Longleaf Partners Fund’s performance due to 16% drop in North American Sales. In addition, please check out our hedge fund investor letters Q4 2025 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.