Longleaf Partners Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

The institutional investment landscape is often divided between those who chase momentum and those who seek intrinsic value. Mason Hawkins, through Southeastern Asset Management and the Longleaf Partners funds, has long been a standard-bearer for the latter. As of the Q4 2025 reporting period, Southeastern Asset Management manages a reported 13F portfolio value of $2,245,172,873 ($2.25 billion) . This scale places the firm in a unique "sweet spot" of the asset management world—large enough to exert influence and engage with management teams, yet small enough to remain nimble and take meaningful positions in mid-cap companies that are often overlooked by the "mega-funds" managing hundreds of billions.

The scale trend for Southeastern in this quarter appears stable to slightly expanding. A portfolio value of $2.25 billion, when viewed against the backdrop of a volatile market environment, indicates a steady hand. The firm’s investment style is characterized by a long-term horizon—evidenced by holdings like CNX Resources (CNX) and FedEx (FDX) , which have been in the portfolio for 8 and over 10 years, respectively. This "time arbitrage" is a core component of the Southeastern psychological portrait; they are willing to look past quarterly earnings noise to capture the multi-year compounding of undervalued assets.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

II. Sector Allocation Analysis

One of the most significant signals in this quarter’s report is the robust allocation to Real Estate (13.35%) . This is not a typical "office REIT" play. Instead, Southeastern’s real estate exposure is concentrated in "Timber REITs" like PotlatchDeltic (PCH) and Rayonier (RYN) , as well as specialized entities like Empire State Realty Trust (ESRT) . This suggests a macro view that favors land value and biological growth (timber) over traditional commercial structures. Timber, in particular, serves as a unique asset class that offers a "natural call option" on housing starts while providing a steady yield and inflation protection.

The relatively low exposure to Technology (5.66%) and Financials (4.50%) sets Mason Hawkins apart from the index-hugging crowd. By being underweight Technology, the firm is avoiding the "valuation air" present in many AI-hyped names, choosing instead to find technology value in niche players like ACM Research (ACMR) . The underweight in Financials suggests a cautious view on traditional banking, perhaps due to net interest margin pressures or credit quality concerns in a "higher-for-longer" interest rate environment.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

CNX has been a staple of the Southeastern portfolio for 8 years, and it remains the #1 holding despite a marginal reduction of 0.35% this quarter. This is a classic "conviction holding." CNX is a premier independent natural gas and midstream company operating in the Appalachian Basin.

Portfolio Construction Summary : The Top 10 is a mix of "Old Conviction" (CNX, FDX) and "New Aggression" (IAC, PCH, RYN). It is a portfolio designed to withstand inflation (Timber, Energy) while capturing significant upside from valuation re-ratings in complex corporate structures (IAC).

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

Where did the money come from? As we will see in Section V, Southeastern significantly reduced its stakes in high-performing or "fully valued" names like SharkNinja (SN) and H World Group (HTHT) . This is a textbook "inventory reallocation." They are harvesting gains from "momentum-adjacent" value stocks and recycling that capital into "deep value" or "unloved" sectors like Timber and Staples.

These additions have collectively lowered the beta of the portfolio while increasing its dividend yield and asset backing . By moving into PCH, RYN, KHC, and ACI, Southeastern is building a "fortress" of cash-generative assets. The "offensiveness" of the portfolio now comes from the valuation re-rating potential of these unloved stocks, rather than from speculative growth.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

While Southeastern was aggressive in its buying, it was equally disciplined in its selling. The firm’s "sell" activity this quarter can be categorized into two main buckets: Profit Taking in winners and Strategic Retreats from positions where the risk-reward profile has deteriorated.

The overall "sell" activity shows a clear intent to de-risk the portfolio from high-beta, high-performance names (SN) and international macro-sensitive names (HTHT). The total cash recouped from these top 4 sells (approx. $85M) almost perfectly offsets the capital deployed into the top 4 additions (approx. $137M, with the remainder likely coming from cash reserves or smaller trims).

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The Logic Chain is Clear : 1. Sell What is Full : Harvest gains from companies that have reached "fair value" or have high "sentiment risk" (SN, HTHT). 2. Buy What is Ignored : Deploy capital into sectors that are currently "unloved" due to interest rate fears but possess immense underlying asset value (Timber REITs). 3. Double Down on Complexity : Increase the bet on "Sum-of-the-Parts" stories like IAC , where the market’s inability to do simple math creates a massive margin of safety. 4. Result : A portfolio that is more defensive, more asset-heavy, and more "contrarian" than it was three months ago.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.