Mason Hawkins

Mason Hawkins

Last Update: 08-14-2015

Number of Stocks: 29
Number of New Stocks: 0

Total Value: $14,949 Mil
Q/Q Turnover: 7%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mason Hawkins Watch

  • David Einhorn Digs Coal

    According to a press release from Consol Energy (NYSE:CNX) on June 30 certain funds managed by Greenlight Capital have agreed to purchase 5,000,000 shares of the newly issued CNX Coal Resources LP (NYSE: CNXC) at the IPO price of $15.00 per share in a private placement. The IPO was completed in July with CNX selling a 21.1% stake of CNXC to the public and an additional 21.1% stake to Greenlight Capital in the private placement. Consol Energy continues to own 53.4% of the company and 100% of the General Partner which has a 2% interest.

    What is CNX Coal Resources LP? It is a growth-oriented master limited partnership, sponsored by Consol Energy. CNX Coal Resources owns a 20% undivided interest in Consol Energy's Pennsylvania thermal coal mining complex (Bailey, Enlow Fork and Harvey mines). They have been granted the right of first offer to acquire the remaining 80% undivided interest in the complex if they choose. The complex has generated about 80% of Consol Energy's coal sales in 2015. The complex consists of three underground mines and related infrastructure that produce high-BTU bituminous thermal coal that is sold primarily to electricity generators in the eastern United States.


  • Mason Hawkins Reduces or Adds to Stakes in His Portfolio

    A renowned financier, Mason Hawkins (Trades, Portfolio) has been in the investment business for four decades. He founded Southeastern Asset Management, the investment advisor to the Longleaf Partners Funds, which enjoyed returns of 4.92% last year, 32.12% in 2013 and 16.53% in 2012.

    Hawkins is a value investor, but, in the second quarter, he found far more value in stakes he already owns than in stakes he could acquire. Nearly all of Hawkins’ second quarter transactions involved reducing or adding to stakes that were already in his portfolio. He bought no new stakes in the second quarter and sold out only two – Bank of New York Mellon Corp. (NYSE:BK) and Mondelez International Inc. (NASDAQ:MDLZ).


  • Mason Hawkins Adds to Stake in Consol Energy

    Energy stocks are second on his preferred list, but Mason Hawkins (Trades, Portfolio)’ recent investment activity has made two energy stocks the largest in his portfolio by volume.

    Consol Energy (NYSE:CNX), a Pennsylvania-based company with interests in coal and natural gas production, has been in Hawkins’ portfolio for years but never at the volume he has reached in the last couple of quarters.


  • Mason Hawkins' Highest Performing Stocks

    Mason Hawkins (Trades, Portfolio) has been Chairman and Chief Executive Officer Southeastern Asset Management since 1975, and he and his partners manage the Longleaf Partners Funds. Since then, the firm's investment philosophy has been to consistently employ the time-tested value approach to long-only equity investing, based on owning strong businesses with good people at deeply discounted prices.

    Today, the fund is composed of 30 stocks, and 6 have been bought during the last quarter. The total value of the portfolio is $15,932 million with 12% Q/Q turnover.


  • Hawkins’ Longleaf Buys Consol Energy at One-Year Low Price

    Mason Hawkins (Trades, Portfolio)’ Longleaf Partners on Monday made another purchase of shares of its third largest holding Consol Energy (NYSE:CNX) as the stock fell to a 52-week low, according to Real Time Picks data.  

  • Longleaf Partners Small-Cap Fund Commentary Q2 2015

    Longleaf Partners Small-Cap Fund lost 1.27% in the quarter, trailing the Russell 2000 Index’s 0.42% return. Year-to-date the Fund returned 4.64% versus the index’s 4.75%. Over longer periods, the Fund’s performance surpassed the index. For the last three and five years, Longleaf Small-Cap far exceeded our annual absolute return goal of inflation plus 10%, as it did for the last 20 years.

    In the second quarter, the majority of our companies made positive business progress, as our management partners took smart actions to drive value growth. Although most investments were positive performers in the quarter, much of our partners’ value-building efforts at the businesses we own is not being fully reflected in the fund’s returns. Our energy-related companies, where a meaningful amount of beneficial activity has occurred and is ongoing, were the largest drag on relative and absolute performance. Our 15.5% net cash position and underweighting to the index’s top performing sector, healthcare, also weighed on relative returns.


  • Longleaf Partners Fund Commentary Q2 2015

    Longleaf Partners Fund’s 2.98% decline in the quarter brought the year-to-date return to -4.03%. These results fell below the S&P 500 Index’s returns of 0.28% and 1.23% for the same periods. For the last three and five years, the Partners Fund exceeded our annual absolute return goal of inflation plus 10%, despite falling short of the index. The Fund’s disappointing results over the last year have negatively impacted our longer-term relative performance. Large swings in relative returns are not unusual in our concentrated portfolio and have contributed to our outperformance over 15+ year periods.


  • Longleaf Partners Funds Q2 2015 Shareholder Letter

    One of Southeastern’s distinguishing aspects is that we maintain concentrated portfolios for the Longleaf Funds, seeking to invest only in companies that meet our stringent criteria for strong businesses, run by good management, available at deeply discounted prices. This discipline is critical to meeting our absolute return goal of inflation plus 10% and has produced strong long-term relative returns over most of our firm’s 40 year history. However, because the makeup of the Longleaf Funds will be materially different than their indices, our returns will diverge from them, often sharply. These wide swings impact not only short-term returns but can create an end point that weighs on longer term relative results as well. In the recent quarter, the International Fund outperformed its benchmark with the help of several corporate transactions, while the three other Longleaf Funds trailed their respective indices. At this time last year, the Partners, Small-Cap, and Global Funds exceeded their indices over a twelve month time frame, but currently, only the Small-Cap is outperforming the benchmark for the last year.


  • Mason Hawkins Buys More Than 27 Million Shares of Royal Phillips

    At the end of the first quarter, Mason Hawkins (Trades, Portfolio)’ stake in Royal Philips NV (NYSE:PHG) was the seventh-largest stake in his portfolio at nearly 17 million shares.

    But, as the second quarter was coming to an end – and because there was a significant gap between the seventh spot and the fourth spot in his portfolio – Hawkins, chairman and CEO of Memphis, Tennessee-based Southeastern Asset Management, nearly tripled his stake in the Dutch technology company, buying 27,069,910 shares for an average price of $25.46 per share, and Royal Phillips became Hawkins’ fourth-largest holding.


  • Mason Hawkins keeps on buying Triangle Petroleum

    Mason Hawkins (Trades, Portfolio) has been chairman and chief executive officer of Southeastern Asset Management since 1975, and its investment philosophy has been to consistently employ its time-tested value approach to long-only equity investing based on owning strong businesses with good people at deeply discounted prices. It seeks to reduce risk and deliver positive absolute returns for investors over time. Southeastern is 100% employee-owned and manages both the Longleaf Partners Funds and separately managed accounts for institutional clients.

    His portfolio is composed of 30 stocks and has a total value of $15,932 Mil.


  • Stay Away From David Einhorn's Fourth-Largest Bet

    David Einhorn's Greenlight Capital disclosed an equity portfolio valued at some $7.65 billion as of the end of the first quarter of 2015. The equity portfolio is mainly invested in Technology (48%), Consumer Discretionary (21%) and Industrials (14%) stocks.

    In a previous article we analyzed the top three positions held as of the end of March 2015. So now, let´s take a look at his fourth-largest position, Consol Energy Inc. (NYSE:CNX).


  • Hawkins' Longleaf Partners Triples Stake in Timber Company

    Longleaf Partners Funds, which is managed by Southeastern Asset Management where Mason Hawkins (Trades, Portfolio) is chairman and CEO, has nearly tripled its stake in Arkansas timber company Deltic Timber Corporation (NYSE:DEL) according to filings on June 10.

    Longleaf’s small cap fund holds 1,296,055 shares of the company, or 10.3% of its outstanding shares, after increasing the stake by 196.58%. The fund had started a position in Deltic Timber Corp in the third quarter of 2014 and has since been increasing the stake in each subsequent quarter.


  • Mason Hawkins Buys Stakes in Google, Five Other Companies in First Quarter

    Value investor Mason Hawkins (Trades, Portfolio) is observing his 40th anniversary as chairman and CEO of Southeastern Asset Management, where the emphasis is on “good business, good people, and a good price” when considering investing in a company.

    Southeastern Asset Management typically holds no more than two dozen stakes in each portfolio; Hawkins’ portfolio is a little higher than that with 30 stakes in it currently. Hawkins made half a dozen new buys in the first quarter, two of which – Wynn Resorts Ltd (NASDAQ:WYNN) and Google Inc (NASDAQ:GOOG) – landed in the top 20 most valuable stakes in his portfolio.


  • Mason Hawkins Comments on Mondelez International Inc

    We sold Mondelez (MDLZ) as price converged with our value. The stock returned 45% since our late 2012 purchase when Kraft spun out the global snacking and food brands, including Nabisco, Cadbury, and Trident, and renamed the company Mondelez. Although emerging market sales weakened, CEO Irene Rosenfeld preserved value per share through margin improvements, share repurchases, and value-accretive moves such as placing the coffee business in a joint venture with DE Master Blenders. This was our third successful investment in Nabisco’s brands. Each time we were able to purchase this juggernaut at a readily ascertainable discount, directly or through a larger company. We hope for another opportunity down the road.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q1 2015 Management Discussion.  

  • Mason Hawkins Comments on Travelers Companies Inc

    Travelers (TRV), a leader in property and casualty insurance, also reached our appraised value. We made a 144% return over our 4+ year holding period. Jay Fishman is among the best operators and capital allocators in the industry, and his record at growing book value, even in challenging periods, greatly rewarded the Partners Fund’s shareholders.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q1 2015 Management Discussion.  

  • Mason Hawkins Comments on Abbott Laboratories

    Abbott (ABT), a global healthcare company, reached our appraisal, resulting in a 120% return over our 4-year holding period. We are extremely appreciative of the value that CEO Miles White built for shareholders during our ownership.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q1 2015 Management Discussion.  

  • Mason Hawkins Comments on Wynn Resorts

    We added two new positions in the first quarter. Weakness in the Macau (China) gaming market provided the opportunity to purchase Wynn Resorts (WYNN) at a substantial discount to our appraisal. Wynn owns some of the world’s prime real estate through luxury gaming and hotel operations in Las Vegas and Macau as well as a future location outside Boston, Massachusetts. Through its 72% ownership of Wynn Macau, Wynn controls a gaming and hotel complex on the Macau peninsula and is completing an additional project in nearby Cotai. The company’s Wynn and Encore casinos are among the most profitable in Vegas, with a prime location on the Strip. Steve Wynn has been a successful owner- operator who has made money for shareholders over a long period. We bought Google as fears around a slowdown in the company’s dominant search and display advertising business became over-discounted in the market.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q1 2015 Management Discussion.  

  • Mason Hawkins Comments on CONSOL Energy

    CONSOL Energy (CNX) was down 17% on weak natural gas and coal prices. During the quarter the company reduced its capex budget and grew production strongly. The company is uniquely positioned to navigate these prices with low cost reserves and plans to monetize non-core assets, including the thermal coal master limited partnership (MLP) in mid-2015 and the met coal initial public offering (IPO) in late 2015. CONSOL is one of our most discounted holdings, and CEO Nick Deluliis expressed his agreement with a significant share repurchase announcement.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q1 2015 Management Discussion.  

  • Mason Hawkins Comments on Chesapeake Energy Corp

    The largest detractor in the quarter was Chesapeake Energy (CHK), one of the largest producers of natural gas, natural gas liquids, and oil in the U.S., which declined 27%. The company reported lower-than- expected price realizations and production in the fourth quarter. While the company cut 2015 budgeted capital expenditures (capex) over 40% versus 2014, the market was hoping for Chesapeake to balance lower cash flow with capex. The company maintains a flexible balance sheet, with $4 billion in cash and an additional $4 billion in an undrawn credit facility, which will allow CEO Doug Lawler to focus on driving the greatest value for shareholders for the long-term, either through the authorized $1 billion repurchase program, strategic acquisitions, or a combination of both. While our appraisal of the company has come down in the short-term with the collapse of oil and gas prices, the long-term thesis remains intact. Chesapeake’s second largest shareholder, Carl Icahn (Trades, Portfolio), recently increased his stake in Chesapeake by 10%, and Chairman Archie Dunham bought an additional $14 million at quarter-end. During the quarter we maintained our overall exposure to Chesapeake but switched half our position into options due to favorable pricing created by the panic and resulting volatility in energy markets. We also employed this approach to increase our exposure to Murphy. We viewed this as a rare opportunity to gain more downside protection while maintaining the upside benefit of higher stock prices. The Chesapeake options accounted for more than half of that position’s decline in the quarter.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q1 2015 Management Discussion.  

  • Mason Hawkins Comments on Level 3 Communications

    Fiber and networking company Level 3 Communications (LVLT) appreciated 9% after another strong quarter of margin and revenue growth. The integration with recently merged tw telecom is proceeding smoothly as the transaction enhances Level 3’s competitive positioning with a complementary product set and larger footprint. Level 3’s growth in its North American enterprise business remains solid as CEO Jeff Storey and his team invest in expanding its fiber network and portfolio of connected buildings.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q1 2015 Management Discussion.  

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