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Southeastern Asset Management Letters & Research Archive

Southeastern Asset Management is a Memphis-based deep-value firm founded in 1975 by O. Mason Hawkins to exploit the bargains left by the 1973-74 bear market. Its flagship Longleaf Partners Funds (launched 1987) invest employees' own money alongside clients'. Following Graham's discipline and its "Business, People, Price" framework, it runs concentrated books of 15-25 undervalued stocks held for the long term — famously closing funds to new investors when opportunities were scarce. CEO and Head of Research Ross Glotzbach now leads the firm, which publishes quarterly Longleaf fund commentaries and Research Perspectives notes.

75 pieces · 2022–2026 · updated every Monday

2026

06-302Q26 Small-Cap Fund CommentaryThis commentary explains how the U.S. small-cap stock market got super speculative in the second quarter of 2026, especially with AI and tech stocks. The fund’s strategy of buying cheap, solid compani…→06-302Q26 Partners Fund CommentaryThis letter explains how the market went crazy for AI stocks in early 2026, bidding up companies like Microsoft even though their real cash earnings (free cash flow) haven't grown since 2019. Meanwhil…→06-302Q26 Global Fund CommentarySoutheastern's Longleaf Partners fund fell behind the market in Q2 2026 because it avoided overpriced AI stocks. They argue that AI hyped companies now have lower free cash flow (actual profits) than…→05-01Research Perspectives – May 2026This report explains why a value fund called Longleaf Partners made money but lagged behind the market. The reason: today's value indexes are packed with expensive AI, bank, and oil stocks that are no…→03-311Q26 Small-Cap Fund CommentaryThis fund commentary argues that the market is overreacting to short-term earnings disappointments, creating big gaps between stock prices and true value. For ordinary investors, that means potential…→03-311Q26 Partners Fund CommentaryThis quarterly commentary explains how the fund fell 4.46% in early 2026 as markets turned sour, but the manager sees a rare buying opportunity: many companies were overly punished for short-term earn…→03-311Q26 Global Fund CommentaryThis fund commentary explains how global stocks fell sharply in early 2026, but the manager says prices dropped far more than the actual businesses are worth. For everyday investors, it's a reminder n…→02-01Research Perspectives – February 2026This report explains why most mergers and acquisitions (when one company buys another) actually hurt the buying company's shareholders. For everyday investors, the key is to spot bad deals—like overpa…→

2025

12-314Q25 Small-Cap Fund CommentaryThis fund commentary explains why the small-cap fund trailed the Russell 2000 in 2025 but claims its holdings are better quality. Most of the index's gains came from low-quality, unprofitable companie…→12-314Q25 Partners Fund CommentaryThis is a quarterly letter from the Longleaf Partners Fund to its investors. The fund underperformed in 2025 because it missed the hot stocks that soared. But the managers argue the market feels like…→12-314Q25 Global Fund CommentaryThis report from Southeastern's Longleaf Partners summarizes their 2025 fund performance. They earned 16.72%, below the global stock market's 21% but above their 'inflation + 10%' target. More importa…→12-314Q25 Asia Pacific CommentaryThis report explains why a fund investing in Asia Pacific stocks returned only 7.3% in 2025, while its benchmark index surged 28%. The gap wasn't due to bad stock picks—the fund deliberately avoided e…→11-01Research Perspectives – November 2025This report starts with Buffett's retirement and highlights three underrated lessons: (1) He systematically studied every US company from A to Z, not relying on tips. (2) As his money grew, he shifted…→09-303Q25 Small-Cap Fund CommentaryThis commentary explains why a small-cap fund lagged the market—not because of poor strategy, but because it deliberately avoided overpriced stocks. With cash at 13%, the fund prefers waiting for bett…→09-303Q25 Partners Fund CommentaryThis fund commentary argues that the current market resembles the 2000 dot-com bubble, with AI stocks and big tech trading at unsustainable valuations. The fund prefers to lag in the short term rather…→09-303Q25 Global Fund CommentaryThis report from Southeastern's Global Fund explains why their returns lagged the market recently (2.6% vs 7.3% in Q3), but they're not worried. They own companies trading at very low valuations (unde…→09-303Q25 Asia Pacific CommentaryThis report analyzes Asia-Pacific markets in Q3 2025. AI and tech stocks dominated, with TSMC alone making up 43% of Taiwan's index. Buying index funds isn't as diversified as it seems—you're essentia…→08-01Research Perspectives – August 2025This report warns that some stocks look cheap—around 10 times free cash flow or 5-8 times EBITDA—but are value traps if they carry too much debt (net debt over 3x EBITDA) and lack growth. Holding such…→06-302Q25 Small-Cap Fund CommentaryThis small-cap fund commentary shares how the fund performed in Q2 2025 and why it still sees bargains. While the market is expensive (over 20 times cash flow), the fund’s holdings trade at just 10–12…→06-302Q25 Partners Fund CommentaryThis is a quarterly letter from Southeastern, a fund manager. They admit their fund lagged the market recently. But they think too many investors are chasing risky stocks (like meme stocks) while igno…→06-302Q25 International Fund CommentaryThis fund commentary covers the second quarter of 2025. The fund returned nearly 15%, beating the market. The main driver was not a big trend but the companies themselves improving—like Glanbia, a spo…→06-302Q25 Global Fund CommentarySoutheastern (Longleaf Partners) published its Q2 2025 letter. They admit slightly underperforming the market, because they didn't fully buy the dip after tariff shocks. Instead, they hold deeply disc…→06-302Q25 Asia Pacific CommentaryThis is a Q2 2025 review of Southeastern's Asia-Pacific fund. The fund made money (+4.9%) but lagged the market (+12.1%) because it didn't own the hot Korean and Taiwan tech stocks, and held too much…→05-01Research Perspectives – May 2025This report warns that the current market consensus—everyone piling into index funds (like the S&P 500) and “pod shops” (a type of short-term-focused hedge fund)—may hide real risks. Index funds aren'…→03-311Q25 Small-Cap Fund CommentaryThis small-cap fund gained 1.5% in early 2025 while the Russell 2000 index fell 9.5%. The manager says today's tariff uncertainty and market fear actually create good chances to buy solid companies ch…→03-311Q25 Partners Fund CommentaryThis report explains why a fund lost 5.14% in the first quarter, worse than the market. The manager says it's normal in a volatile market. They own quality companies (like Mattel, Albertsons, FedEx) w…→03-311Q25 International Fund CommentaryThis commentary breaks down Southeastern’s International Fund performance in Q1 2025. The fund gained 0.73%, lagging the index, but the index’s 6.42% rise was misleading—most stocks actually fell. For…→03-311Q25 Global Fund CommentaryThis report from a veteran investment firm explains how its global fund performed in early 2025. Despite market turmoil from tariffs, the fund lost 2.21%, but the managers think the chaos actually fav…→03-311Q25 Asia Pacific CommentaryThis report explains why Chinese tech and consumer companies—like DeepSeek (a startup making cheap AI models) and BYD (an electric vehicle giant)—are challenging U.S. giants. For ordinary investors, i…→02-01Research Perspectives – February 2025This report says many popular US tech stocks are too expensive and risky. Instead, it suggests looking for cheap, ignored companies with room to improve profits—like Gruma (a Mexican tortilla maker) o…→

2024

12-314Q24 Small-Cap Fund CommentaryThis commentary explains why a fund manager thinks today's market looks like the 1999-2000 dot-com bubble—the S&P 500 (a broad index of big US companies) has extreme price-to-earnings ratios and profi…→12-314Q24 Partners Fund CommentaryThis report is about Longleaf Partners Fund, which returned 8.8% in 2024, far behind the S&P 500's 25%. The manager thinks the stock market is overvalued, similar to the 1999-2000 bubble. So the fund…→12-314Q24 International Fund CommentaryThis commentary explains why international stocks underperformed U.S. stocks in 2024—not because companies were bad, but due to a strong dollar and political turmoil (e.g., martial law in South Korea,…→12-314Q24 Global Fund CommentarySoutheastern's global fund lagged the market in 2024, but they argue that's fine—similar to 1999-2000, when value investing temporarily underperformed before proving wise. Today, the S&P 500's price/e…→12-314Q24 Asia Pacific CommentaryThis piece reviews Southeastern's fund performance in 2024 and highlights an overlooked opportunity: Japanese small-cap stocks. The fund beat its benchmark for the year but lost ground in Q4 due to Ch…→09-303Q24 Small-Cap Fund CommentaryThis is a quarterly update from Southeastern's small-cap fund. It explains how their stocks performed (some like Oscar Health did well, Westrock Coffee struggled) and why they adjusted positions. They…→09-303Q24 Partners Fund CommentaryThis report covers how Longleaf Partners Fund performed in Q3 2024. It earned 10.42% (beating major indexes) but deliberately trimmed some winners (like Kellanova, bought out by Mars) and raised cash…→09-303Q24 International Fund CommentaryThis report covers the Longleaf Partners International Fund's third-quarter 2024 results. Despite a 3.5% currency drag (yen up, peso down), the fund returned 11.2%, beating its benchmark. The manager…→09-303Q24 Global Fund CommentaryThis is a quarterly update from the global fund at Southeastern (Longleaf Partners). In the third quarter of 2024, the fund did well, beating its benchmark by a wide margin. Most of its holdings—like…→09-303Q24 Asia Pacific CommentaryThe report explains why Chinese stocks could keep rising after recent policy stimulus (the central bank launched $112 billion in market support). Valuations are low (Hang Seng PE ratio of 10x), foreig…→06-302Q24 Small-Cap Fund CommentaryThis report says Southeastern's small-cap fund had a bad quarter, but the companies they own are improving. Over half the fund's money is in stocks likely to have big events (like asset sales, spinoff…→06-302Q24 Partners Fund CommentaryThis report is from the Longleaf Partners Fund, which fell 6% last quarter while the S&P 500 rose 4%. The manager warns that the overall market is dangerously overvalued: profit margins for big compan…→06-302Q24 International Fund CommentaryThis is the quarterly update from a global fund run by Southeastern Asset Management. The fund lost 4.24% last quarter, missing its benchmark, mainly due to election fears in Mexico, France, and the U…→06-302Q24 Global Fund CommentaryThis report shares a fund manager's view: the stock market, especially the S&P 500, is dangerously overvalued due to record-high profit margins and high price-to-earnings ratios, which could lead to a…→06-302Q24 Asia Pacific CommentaryThis report explains how Southeastern's Asia Pacific fund performed in Q2 2024. The fund lost money because it invested heavily in Chinese consumer stocks, which are struggling as Chinese consumers cu…→03-311Q24 Small-Cap Fund CommentaryThis commentary explains how a small-cap fund beat its benchmark in the first quarter of 2024, returning 6.85% vs. the Russell 2000's 5.18%. The fund's stocks trade about 35-40% below what they're wor…→03-311Q24 Partners Fund CommentaryThis is a quarterly letter from Longleaf Partners Fund. It explains how they earned 6.6% in a market where only a few AI stocks were soaring. For regular investors, the key takeaways are: they favor c…→03-311Q24 International Fund CommentaryThis is a quarterly report from an international fund that slightly underperformed its benchmark. The main reason: they overweighted Hong Kong and Chinese stocks (out of favor) and underweighted Japan…→03-311Q24 Global Fund CommentaryThis report looks at a global fund's performance in early 2024, when US AI stocks dominated the market. The fund still made money by investing in non-US companies whose managers cut costs and bought b…→03-311Q24 Asia Pacific CommentaryThis report from Southeastern explains how they found hidden value in Hong Kong-listed companies that actually do most of their business outside China—like Samsonite (luggage) and L'Occitane (skincare…→

2023

12-314Q23 Small-Cap Fund CommentaryThis is a fund's quarterly letter to investors. They beat the small-cap index with a 20% return last year, but warn not to blindly buy cheap index funds (P/E 11x) — many banks and energy stocks have h…→12-314Q23 Partners Fund CommentaryThis report explains how Southeastern's value fund performed in 2023 while most stocks lagged behind a handful of tech giants. They avoided overpriced growth stocks and low-quality cheap ones, focusin…→12-314Q23 International Fund CommentaryThis report from Southeastern's International Fund explains that in times of high inflation and interest rates, only high-quality businesses with pricing power and real cash flow thrive. The fund is b…→12-314Q23 Global Fund CommentaryThis article explains why value investing is making a comeback, but warns against simply buying low-PE index funds. The market in 2023 was dominated by a few tech giants, while most stocks underperfor…→12-314Q23 Asia Pacific CommentaryThis report from Southeastern argues that Chinese stocks, despite their terrible performance, might be a good buying opportunity. Local investors and companies themselves are buying heavily—Tencent re…→09-303Q23 Small-Cap Fund CommentaryThis is a quarterly update for Southeastern's small-cap fund. Small-company stocks are currently much cheaper than giant ones, and the fund sees this as a big opportunity. The fund eked out a small ga…→09-303Q23 Partners Fund CommentaryThis quarterly report explains how a fund beat the market by avoiding popular stocks like Apple and Tesla (the 'Magnificent Seven'), which trade at very high prices (29 times earnings). Instead, it bo…→09-303Q23 International Fund CommentaryThis report looks at how the Longleaf Partners International Fund performed in the third quarter of 2023. The fund lost about 4%, similar to the overall market, because of high interest rates and Chin…→09-303Q23 Global Fund CommentaryThis article covers Southeastern's Global Fund results for Q3 2023. Instead of chasing the "Magnificent Seven" tech giants (with an average P/E of 29), the fund bought high-quality companies at a low…→09-303Q23 Asia Pacific CommentaryThis report from an investment firm looks at Asia-Pacific markets in Q3 2023, focusing on China. It argues that investors are too pessimistic—many Chinese companies like Alibaba, Tencent, and Macau ca…→06-302Q23 Small-Cap Fund CommentaryThis commentary from a small-cap fund says their portfolio returned 3.7% in the second quarter. The manager warns that mega-cap tech stocks (like Apple, Microsoft) may be in a bubble similar to the 20…→06-302Q23 Partners Fund CommentaryThis report says the 2023 stock market rally is driven by a few mega-cap stocks (huge, trendy companies), similar to the early dot-com bubble. The fund managers avoided those stocks and still beat the…→06-302Q23 International Fund CommentaryThis fund commentary reviews a global fund’s 2023 first half: up 13.8% but lagging the index. The manager says China’s slow rebound (housing drag) hurt some holdings, but European businesses were stro…→06-302Q23 Global Fund CommentaryThis fund commentary warns that today's stock market is driven by a handful of giant tech stocks, much like the 2000 dot-com bubble. It suggests those stocks could crash soon. But the fund itself avoi…→06-302Q23 Asia Pacific CommentaryThis report explains why Southeastern's Asia-Pacific fund underperformed in Q2 2023: it held too many Chinese and Hong Kong stocks while missing Japan's rally. But the author argues Chinese assets are…→03-311Q23 Small-Cap Fund CommentaryThis commentary explains how a small-cap fund performed in early 2023, when bank failures and a tech stock rally shook markets. The fund avoided banks and overpriced tech stocks, so it actually beat i…→03-311Q23 Partners Fund CommentaryThis report covers how the Longleaf Partners Fund performed in early 2023, when bank failures and a tech stock bounce dominated markets. The fund avoided banks and owned few tech stocks, so its result…→03-311Q23 International Fund CommentaryThis report covers a global fund's performance in early 2023. It returned 12.3%, beating its benchmark. The biggest winners were European and Asian companies where management took bold steps—like Mill…→03-311Q23 Global Fund CommentaryThis report covers how the Longleaf Partners Global Fund performed in early 2023. The key takeaway: by avoiding banks and overpriced tech stocks (like Apple and Microsoft), the fund beat the market. T…→03-311Q23 Asia Pacific CommentaryThis report looks at investment opportunities in Asia in early 2023. It argues that the US banking crisis made risky assets (like tech stocks with lots of debt) vulnerable, but Asian companies are saf…→

2022

12-314Q22 Small-Cap CommentaryThis report is a letter from a fund that invests in small companies. In 2022, the fund lost 19%, slightly better than the overall small-company market but worse than a similar value-focused index. The…→12-314Q22 Partners Fund CommentaryThis is Southeastern's Q4 2022 letter to investors. They admit their fund fell 23% last year, worse than the S&P 500, mainly because a few big bets like Lumen and IAC (telecom and media companies) cra…→12-314Q22 International CommentaryThis report covers a fund that invests in non-U.S. stocks during the fourth quarter of 2022. Despite a tough year due to war, inflation, and a strong dollar, the fund rebounded 18.4% in Q4. The key id…→12-314Q22 Global Fund CommentaryThis report from Southeastern's global fund explains why it lost 24% in 2022, worse than the market. The managers admit they focused too much on cheap stocks but ignored high debt (like Lumen) and inv…→12-314Q22 Asia Pacific UCITS CommentaryThis report looks at how a fund performed in 2022, a tough year for Asian markets, especially China. The manager believes the worst is over and is betting on China's consumer recovery—think hotels, tr…→