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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Longleaf Partners Small-Cap Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings with an attractive price-to-value ratio in the high-60s% and 11.0% cash."
Longleaf Partners Small-Cap Fund delivered a 2.70% return for the second quarter of 2025, bringing its year-to-date return to 4.24%. This lagged the Russell 3000 Index's 10.99% and Russell 2000 Index's 8.50% performance. The managers highlight that despite short-term market speculation in lower quality stocks and 'YOLO' bets, they remain disciplined absolute-return investors. The portfolio boasts a strong price-to-value ratio in the high-60s% and an attractive price-to-free cash flow multiple of 10-12x. Key investment themes driving the portfolio include tariff considerations, real estate overweights, and an overweight in the alcohol industry via positions in Boston Beer and Becle, which they view as experiencing cyclical rather than structural downturns. Notable contributors for the quarter included health software firm Oscar Health, tequila manufacturer Becle, and Atlanta Braves Holdings. Conversely, detractors included Westrock Coffee, Boston Beer Company, and timberland firm PotlatchDeltic. The fund engaged in active portfolio management, acquiring two new positions—a REIT and a packaging company—while exiting Howard Hughes at a profit. The cash balance stands at 11.0% with 20 total holdings, leaving the fund well-positioned to deploy capital into an expanding pipeline of opportunities.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
High-conviction positioning: The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Growth Outlook
Market outlook remains high conviction: The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Risk Appetite
Risk appetite posture is high conviction: The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Capital Deployment
Manager actively deployed capital into high-conviction opportunities. The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Forward Guidance
Forward guidance signal: The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Language Signal
Tone analysis indicates high conviction language: The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Perceived Risk
Perceived risk level is evaluated as moderate conviction. The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Opportunity Density
Opportunity density index indicates high conviction actionable entry points. The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
Time Horizon
Investment time horizon reflects a high conviction orientation. The Longleaf Partners Small-Cap Fund returned 2.70% in 2Q25, lagging its benchmarks amid speculative market behavior. The fund maintains a concentrated portfolio of 20 holdings wit...
