Longleaf Partners, managed by Southeastern Asset Management, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. The Fund returned -4.46% in the quarter, compared to the S&P 500’s -4.33% and the Russell 1000 Value Index’s 2.10% return. The year began similarly to the second half of 2025, with rising stocks and penalization for caution. February was marked by unusual sector-wide movements influenced by perceived AI outcomes. Complications arose from the Iran War and increasing private credit risks. The Fund initially lagged the market, but performance improved as conditions worsened. The fund ended the quarter with a P/V of mid-50s%, which bodes well for promising future returns. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Longleaf Partners Fund highlighted stocks like Rayonier Inc. (NYSE:RYN). Rayonier Inc. (NYSE:RYN) is a leading land resources real estate investment trust specializing in delivering land to its highest and best use while managing its timberlands sustainably and maximizing the value of its whole property. On May 15, 2026, Rayonier Inc. (NYSE:RYN) closed at $19.82 per share. One-month return of Rayonier Inc. (NYSE:RYN) was -7.43%, and its shares lost 17.55% over the past 52 weeks. Rayonier Inc. (NYSE:RYN) has a market capitalization of $5.99 billion.
Longleaf Partners Fund stated the following regarding Rayonier Inc. (NYSE:RYN) in its Q1 2026 investor letter:
“Rayonier Inc. (NYSE:RYN) – Timberland companies Rayonier and PotlatchDeltic completed their merger in the quarter to become our largest single position in the Fund. While the combination of the pre-merger-close price move up in PotlatchDeltic and the post-merger-close price move down in Rayonier did not combine to make this a material contributor, it is worth noting the post-merger weakness we believe did not line up with the solid value creation opportunity at a company like this. While some of the sell-off was likely short-term/technical (index moves), timberland remains a great and long-term store of value. Interest rate moves and housing market sentiment can impact perception in the short term, but this asset class has historically been an inflation hedge that has performed well in a variety of environments. Post-merger, new Rayonier has a strong balance sheet and the ability to go on offense. We believe that targeted asset sales and share repurchase can drive value per share growth from here. We also wrote about the company in our most recent Research Perspectives note.”
Rayonier Inc. (NYSE:RYN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 31 hedge fund portfolios held Rayonier Inc. (NYSE:RYN) at the end of the fourth quarter, compared to 35 in the previous quarter. While we acknowledge the risk and potential of Rayonier Inc. (NYSE:RYN) 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 Rayonier Inc. (NYSE:RYN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Rayonier Inc. (NYSE:RYN) and shared Third Avenue Real Estate Value Fund’s insights on the company. In addition, please check out our hedge fund investor letters Q1 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.
