Longleaf Partners Reports Modest Fund Underperformance

Longleaf Partners, managed by Southeastern Asset Management, reported in its fourth-quarter 2025 investor letter that the Fund returned 3.35% for the quarter, versus the S&P 500's 2.66% and the Russell 1000 Value Index's 3.81%. The letter cites market dynamics and few standout winners—only 5% of holdings gained ≥20%—and highlights Mattel's strong position, $600 million buybacks, and 50% gross margins as key positives.