Southeastern Asset Management Inc. is an investment management firm headed by Chairman and CEO O. Mason Hawkins and President G. Staley Cates that looks for “time horizon arbitrage,” companies that have sustainable competitive advantages that offer long-term potential for growth that may not always be priced into other investors’ quarterly valuations. The bulk of the fund consists of around 20 companies chosen to be low risk, with a particular emphasis on companies that have strong corporate leadership.
Added positions of Southeastern Asset Management
Southeastern Asset Management took on new positions with 58 million shares of Cemex SAB de CV (NYSE:CX) worth $72 million and 900,000 shares of Mosaic Co (NYSE:MOS) worth $49 million. It also doubled its holdings of CNH Global NV (NYSE:CNH) to 1.9 million shares worth $160 million, and increased shares of Murphy Oil Corporation (NYSE:MUR) by 53% for $978 million worth of stocks. Investments in Chesapeake Energy Corporation (NYSE:CHK), Loews Corporation (NYSE:L), and FedEx Corporation (NYSE:FDX) have remained steady, leaving them as the firm’s three largest holdings.
Reduced positions of Southeastern Asset Management
Southeastern Asset Management sold off 41% of its stock in Dell Inc. (NASDAQ:DELL), reducing the value of its holdings to $949 million, and nearly its investment in Saks Inc (NYSE:SKS), now holding just $180 million worth of stock in the company. It also sold 63% of its shares in Service Corp. International and 44% of its stocks in Martin Marietta Materials, Inc. (NYSE:MLM), now holding $95 million and $117 million worth of stocks in the companies respectively.
Sold out positions of Southeastern Asset Management
Southeastern Asset Management has sold out its positions in Lamar Advertising Co (NASDAQ:LAMR) and Madison Square Gardens Inc. Both holdings had been relatively small, representing less than one percent of the fund’s total AUM.