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

  • Longleaf Partners More Than Halves Stake in California Oil Company

    Longleaf Partners Funds, where Mason Hawkins (Trades, Portfolio) is chairman and CEO, has reduced its holding of California Resources Corp (NYSE:CRC) by 57.46%, according to Real Time Picks.


    The firm retains 14,244,200 shares of the company, representing 3.7% of the oil company's total outstanding shares. California Resources spun off of Occidental Petroleum on Nov. 30, in the same quarter that Longleaf reported starting its position of 33,481,500 shares. Longleaf, however, does not own Occidental Petroleum (NYSE:OXY) shares and bought California Resources on the open market. According to its Small-Cap Fund first quarter shareholder letter:

      


  • Mason Hawkins Increases Holdings in Murphy Oil

    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. Mr. Hawkins attended the University of Florida where he earned a B.A. in Finance, and the University of Georgia where he earned an M.B.A. in Finance.


    Web Page: http://www.longleafpartners.com/

      


  • Mason Hawkins' First-Quarter 2015 Commentary

    The first quarter of 2015 saw a continuation of the themes from the second half of 2014. Almost all of our individual businesses delivered solid operating performance, and our management partners pursued productive ways to build long-term per share values. This activity produced strong excess returns in Longleaf Partners Small-Cap Fund,“which helped the Longleaf fund earn the No. 1 ranking among small-cap U.S. equities funds.” 1 By contrast, the Partners, International, and Global Funds’ relative performance remained challenged as solid company results could not overcome three ongoing broad headwinds: the fall in energy prices, the U.S. dollar strength, and the Chinese government’s pressure on Macau gaming. While these challenges affected only a handful of our holdings, they were large enough to offset the good results at the vast majority of our companies.


    The steady upward climb of the S&P 500 has intensified the debate over active versus passive investment approaches, and given this, we want to detail the reasons we are confident that our portfolios can outperform relevant benchmark indices and deliver on our absolute goal of inflation plus 10% over the long term.

      


  • Mason Hawkins Comments on Royal Philips NV

    Philips (PHG) fell 18% in the year and 8% in the fourth quarter. The company faced a number of short-term challenges including a one-time pension payment, a temporary suspension of production at its Cleveland, OH-based medical imaging plant, slower emerging market demand, and foreign exchange headwinds. Currency translation from euros into U.S. dollars accounted for approximately half of the price decline. The stock price does not reflect the ongoing transformation of the company under CEO Frans Van Houten who has substantially improved operating margins and focused the company over his 3+ year tenure. Philips’ discounted share price provided management the opportunity to execute another massive €1.5 billion share repurchase. In 2014 Philips announced plans to sell or spin off its Lumiled and auto lighting businesses and to split into two companies: Lighting Solutions and HealthTech, which will be comprised of the current Healthcare and Consumer Lifestyle businesses. We applaud the split. The “conglomerate discount” should disappear as each business stands on its own and is easier to compare to more pure-play peers that trade at higher multiples. Separate reporting will commence in January 2015, and the split is expected to happen by 2016.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on CONSOL Energy

    CONSOL Energy (CNX) dropped 11% in the fourth quarter and for the year in full. CONSOL’s management team took productive action to increase shareholder value despite a difficult coal and gas environment. In the second half of the year, Chairman Brett Harvey and CEO Nick Deluliis completed an IPO (initial public offering) for a midstream MLP (master limited partnership) at metrics above our appraisal. CONSOL most recently announced it would form an MLP to house its thermal coal business and form a subsidiary to own its metallurgical coal properties. These transactions should bring the value of its coal assets forward, improve the transparency into the value of these assets, and provide additional vehicles to access capital markets, while allowing the company to control the assets and realize synergies across its businesses. In addition, CONSOL authorized a share repurchase program for up to approximately 3.6% of the company.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on Murphy Oil

    Murphy (MUR) was down 20% in the year after an 11% decline in the fourth quarter. CEO Roger Jenkins took actions to recognize value including selling a 30% stake in Malaysian assets at a price above our appraisal. Murphy also bought back shares in 2014 and has authorization for more. The sharp decline in oil prices most heavily affected Murphy’s ownership in Syncrude’s Canadian oil sands, which represented less than 15% of our appraisal before oil’s drop and less today.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on Loews

    Despite being up 1% in the fourth quarter, Loews (L), the holding company owned and managed by the Tisch family, sold off with energy and was down 12% for the year. The company’s CNA insurance unit generated strong cash flow, but its stakes in energy companies Diamond Offshore (DO) and Boardwalk Pipelines Partners (BWP) declined 30% and 29% respectively. DO has the strongest balance sheet among drilling rig operators and should be able to upgrade its fleet cheaply as distressed sellers seek capital. BWP cut its dividend to invest in additional service points along its pipeline and expand its ability to transport gas from the northeastern U.S. Loews repurchased shares amounting to approximately 3.5% of the company and has substantial liquidity to take advantage of undervalued opportunities including additional shares.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on Chesapeake

    Chesapeake (CHK) declined 21% for the full year and 14% in the fourth quarter. Since Chesapeake’s heavily vested Board took over in mid-2012, the company has delivered the balance sheet and improved production from its irreplaceable 12 +million net acres of oil and gas fields. CEO Doug Lawler is driving value recognition in ways he can control – selling assets at reasonable prices, reducing debt, and increasing operating efficiencies in both corporate and production activity. In the first half of the year, Chesapeake sold non-core acreage in Oklahoma, Texas, and Pennsylvania and spun-off its oilfield services business into Seventy-Seven Energy, which we sold. In the fourth quarter, Chesapeake closed the sale of Marcellus and Utica assets to Southwestern Energy for $5 billion. This amounted to roughly 8% of Chesapeake’s production for nearly half its market cap. Management announced plans to use $1 billion of the proceeds to repurchase the heavily discounted shares.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on Aon

    For Aon (AON), the world’s largest insurance broker and a leading benefits manager, increasing cash flow and healthy share repurchases helped our position gain 8% in the fourth quarter and 14% for the year. Aon’s private health care exchange business increased its scale, adding more than a dozen clients and aggressively growing the market. The company, led by CEO Greg Case, used $1.8 billion to repurchase almost 7% of shares in the first nine months of 2014, the highest amount since 2008. Aon authorized an additional repurchase plan of up to $6.1 billion, roughly 24% of outstanding shares.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Increases Holdings in CNX and DWA

    Mason Hawkins (Trades, Portfolio), Founder, Chairman and Chief Executive Officer of Southeastern Asset Management increased his holdings in two positions in his portfolio of 30 stocks total, with a value currently at $18.33 billion and a quarter-over-quarter turnover rate of 12%.


    When looking for businesses to invest in, Hawkins has three rules: The business must have good people working for it, the business must be strong, and lastly, the stock must be at a deeply discounted price. Sticking with these principles has earned him the Institutional Investor Lifetime Achievement Award in 2005, Equity Manager of the Year in 2007, along with other awards and nominees throughout the years.

      


  • Mason Hawkins Comments on Cheung Kong

    Hong Kong based conglomerate Cheung Kong (HKSE:00001) gained 15% in the year. Over the course of 2014, results at most of the company’s operating divisions were strong. Additionally, management made several value-enhancing asset sales across multiple business lines at low cap rates and used proceeds to opportunistically reinvest in discounted infrastructure deals outside of Asia with double-digit IRRs (internal rates of return). Management also returned proceeds to shareholders in the form of dividends. Most recently, in a joint venture with Mitsubishi Corp, Cheung Kong bought an airplane leasing portfolio. With its strong balance sheet, Cheung Kong can take advantage of Hong Kong land banking opportunities if prices correct.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on Berkshire Hathaway

    Berkshire Hathaway (BRK.A, BRK.B) appreciated 28% for the year after its fourth quarter gain of 10%. The company’s underlying operating businesses performed well. In insurance, GEICO revenues grew 10% driven 2/3 by units and 1/3 by pricing. Reinsurance endured no major catastrophes and some positive currency impact. BNSF grew 4% with gains in both volume and pricing. In the fourth quarter, Berkshire announced the acquisition of Duracell from Proctor & Gamble in a tax efficient exchange for appreciated Berkshire stock. The stock reached our appraisal, and we sold it. Berkshire rarely sells at enough of a discount to meet our criteria given its quality businesses and management, but we were able to purchase it for the second time in our history in 2012. The stock returned over 89% in our two year holding period.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on FedEx

    FedEx (FDX) rose 22% for the year and 8% in the fourth quarter. The company expanded operating margins in its Express, Ground and Freight segments over the year and executed on profit improvement initiatives. EPS (earnings per share) grew as did our appraisal. The company repurchased close to 10% of its shares. FedEx moved to further entrench itself in Ground delivery through expansion capex and the acquisition of Genco, which handles reverse logistics for retailer returns. FedEx expects to benefit over the next year from a healthy U.S. economy and lower fuel prices, which improve the relative cost of faster delivery via planes at a premium versus slower shipping via boats.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins Comments on Level 3 Communications

    Fiber and networking company Level 3 Communications (LVLT) gained 49% and led the Fund’s performance for the year and the fourth quarter, up 8%. Level 3 provides critical infrastructure that connects businesses and consumers to the internet, allowing them to move voice, video and data. The company’s acquisition of tw telecom closed in the fourth quarter, significantly expanding its network reach in metropolitan markets and providing additional capacity to grow its enterprise customer base. Throughout the year, CEO Jeff Storey and his team delivered solid revenue growth, margin improvement, and higher free cash flow. The stock remains well below our value of its operating networks and non-earning dark fiber and conduit assets and is the Fund’s largest holding.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Fund Q4 2014 Management Discussion.  


  • Mason Hawkins’ Longleaf Partners Fund Q4 2014 Management Discussion

    Longleaf Partners Fund finished the year up 4.92% after a 1.46% gain in the fourth quarter. These results fell below the S&P 500’s returns of 13.69% and 4.93% for the same periods. During the first half of the year, the Fund kept pace with the Index despite having a greater than 20% cash balance. In the second half of 2014, the Fund lagged the S&P 500’s advance largely due to our energy-related holdings, which were leading contributors in the first half but sold off with the sharp decline in oil prices. We are disappointed in the recent performance, but remain confident in the quality of our businesses and management partners in the portfolio. For the last five years, Longleaf Partners Fund exceeded our annual absolute return goal of inflation plus 10%, despite falling short of the Index. Over longer term periods of 15+ years shown below, the Fund surpassed the Index.


      


  • Mason Hawkins' Longleaf Partners Annual Shareholder Letter 2014

    After strong returns across all the Longleaf Partners Funds in 2013, only the Small-Cap Fund in 2014 exceeded its benchmark index and our absolute return goal of inflation plus 10%. We are not pleased with the results in our Funds outside of Small-Cap over the last twelve months, but we do welcome the increased volatility and opportunity created as broad markets and stocks within those markets began to diverge in the second half of the year.


    We are seeing strong parallels in current markets versus the late 1990s that lead us to believe we will be returning to an environment where the merits of individual holdings are more likely to be properly weighed by the market and value investment approaches are more likely to be rewarded with solid absolute and relative returns. Based on the underlying fundamentals at our companies, the actions our management partners are taking, and the broader investing environment, we are confident that our portfolios are positioned for successful long-term compounding.

      


  • Mason Hawkins' Longleaf Partners Boosts Stake in 2 Companies

    Longleaf Partners Funds is company where famed investor Mason Hawkins (Trades, Portfolio) is chairman and CEO. On Dec. 10, Longleaf added shares to its positions in two stocks, GuruFocus reported: Dreamworks Animation (NASDAQ:DWA) and Level 3 Communications (NYSE:LVLT).


    Longleaf increased its holding of Dreamworks Animation by 76.4% and holds 8,548,945 shares after the transaction. The company’s shares have declined by about 39% year to date and closed at $21.71 on Wednesday.

      


  • Mason Hawkins Comments on Vivendi SA

    We initiated four new positions in the quarter: McDonald’s Corporation, Scripps Networks Interactive, Vivendi, and one undisclosed name. French company Vivendi (XPAR:VIV) consists of two key businesses — Universal Music Group, the world’s biggest record label, and Canal+ Group, France’s biggest pay-TV operator. The recent auction of Vivendi’s Brazilian broadband business, GVT (Global Village Telecom), highlights Chairman and 5% owner Vincent Bolloré’s focus on creating value for shareholders. Southeastern has invested in Vivendi successfully twice before, and the company’s focus, asset quality, and management team has grown even stronger.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Q3 2014 Management Discussion.  


  • Mason Hawkins Comments on Scripps Networks Interactive Inc

    We initiated four new positions in the quarter: McDonald’s Corporation, Scripps Networks Interactive, Vivendi, and one undisclosed name. Scripps (SNI), a multi-year holding in our Small-Cap Fund, owns various channels, including 100% of HGTV and 69% of The Food Network. Its market capitalization has grown enough for us to own this company in the Partners Fund, and our appraisal has kept pace so that the attractive discount remains.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Q3 2014 Management Discussion.  


  • Mason Hawkins Comments on McDonald's Corp

    We initiated four new positions in the quarter: McDonald’s Corporation, Scripps Networks Interactive, Vivendi, and one undisclosed name. Food quality issues at McDonald (MCD)’s China supplier, minimum wage pressure in the U.S., Russian challenges, European macro concerns, and improvements at competing chains pressured the stock and enabled us to own the company’s valuable real estate and dominant breakfast business at a discount.

    From Mason Hawkins (Trades, Portfolio)’ Longleaf Partners Q3 2014 Management Discussion.  


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