The latest from Mason Hawkins LongLeaf Partners third Quarter Shareholder letter. This is an interesting excerpt on where the fund is finding value, it seems to be globally.
Capital Allocation Contributions
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The first two months of the third quarter were the best months for D1 Capital Partners' public portfolio since inception, that's according to a copy of the firm's August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1's public portfolio returned 20.1% gross Read More
Capital allocation decisions such as repurchasing shares and restructuring debt have been laudable. Collectively, of the 55 companies across the three Funds, roughly half have added value by buying back undervalued shares over the last year. Management teams at ACS in Europe, Cemex in Mexico, and Level(3) and Quicksilver in the U.S., have improved their balance sheets by successfully restructuring debt, extending maturities, and/or negotiating favorable covenants. Conversely, several companies with strong balance sheets such as Accor, DIRECTV, Disney, Cheung Kong, Ferrovial, and Henderson, locked in historically low interest rates by issuing cheap long-dated debt.
Longleaf Shareholder Letter