Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 11.67% up in the first quarter, compared to S&P’s return of 7.50% and Russell 1000 Value’s 1.01% return. The largest performance drivers of the fund in the quarter were the largest detractors from the prior years. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Longleaf Partners Fund highlighted stocks like FedEx Corporation (NYSE:FDX) in the first quarter 2023 investor letter. Headquartered in Memphis, Tennessee, FedEx Corporation (NYSE:FDX) offers transportation, e-commerce, and business services. On April 25, 2023, FedEx Corporation (NYSE:FDX) stock closed at $225.47 per share. One-month return of FedEx Corporation (NYSE:FDX) was 0.81%, and its shares gained 13.15% of their value over the last 52 weeks. FedEx Corporation (NYSE:FDX) has a market capitalization of $58.354 billion.
Longleaf Partners Fund made the following comment about FedEx Corporation (NYSE:FDX) in its Q1 2023 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a top contributor in the quarter. FedEx was another 2022 top detractor after a widely publicized earnings shortfall on the back of a disappointing economic report in the second half. In 1Q 2023, the stock rebounded after revenues were weak as forecasted, but FedEx was able to maintain strong pricing power in the face of rising inflation to improve earnings vs. expectations. FedEx’s important Ground business also beat guidance by a large margin due to effective cost control. Even with weak overall revenues, margins increased by 200 basis points. FedEx aggressively bought back discounted shares, indicating management’s confidence. We believe the company’s earnings power is well over $20 longer term vs. current estimates of $15-16 per share, with additional potential upside. After quarter end, FedEx hosted an investor meeting on its DRIVE program which will improve operations and enable the company to achieve double-digit operating income margins in the near future. FedEx will consolidate Express, Ground and Services into one unified operating company.”
FedEx Corporation (NYSE:FDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the fourth quarter which was 57 in the previous quarter.
We discussed FedEx Corporation (NYSE:FDX) in another article and shared the list of most profitable industrial stocks. In addition, please check out our hedge fund investor letters Q1 2023 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.
