This is the portfolio update for Longleaf Funds. The firm is run by Mason Hawkins and his team, who measure the portfolio risk with price/value ratio.
In his most recent shareholder letter, Mason Hawkins talks a lot about the economy in the letter. Hawkins notes that many investors have concerns about inflation, deflation, and sovereign debt issues. Hawkins discounts these macro fears by stating that his goal is only to focus on the long term results.
Hawkins still believes that the funds can achieve their goal of inflation plus a 10% returns. He sees returns of 10% alone from the free cash flow that the companies he owns yield.
Mason Hawkins buys The Travelers Companies Inc., Vulcan Materials Company, sells Pioneer Natural Resources Company, Verizon Communications Inc., Yum! Brands Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Southeastern Asset Management. Mason Hawkins owns 43 stocks with a total value of $22.4 billion. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Mason Hawkins
Added: Loews Corp. (L, Financial)
Mason Hawkins added to his holdings in Loews Corp. by 209.26%. His purchase prices were between $33.57 and $38.55, with an estimated average price of $36.61. The impact to his portfolio due to this purchase was 2.48%. His holdings were 21,684,900 shares as of 09/30/2010.
Loews Corporation is a holding company. Its subsidiaries are engaged in thefollowing lines of business: property, casualty and life insurance; the production and sale of cigarettes; the operation of hotels; the operation of offshore oil and gas drilling rigs; and the distribution and sale of watches and clocks. Loews Corp. has a market cap of $16.6 billion; its shares were traded at around $39.68 with a P/E ratio of 14 and P/S ratio of 1.2. The dividend yield of Loews Corp. stocks is 0.6%. Loews Corp. had an annual average earning growth of 11% over the past 5 years.
Added: Campbell Soup Company (CPB, Financial)
Mason Hawkins added to his holdings in Campbell Soup Company by 72.15%. His purchase prices were between $35.31 and $37.47, with an estimated average price of $36.32. The impact to his portfolio due to this purchase was 1.27%. His holdings were 18,936,174 shares as of 09/30/2010.
Campbell Soup Company, together with its consolidated subsidiaries, is a global manufacturer and marketer of high quality, branded convenience food products. Campbell Soup Company has a market cap of $11.7 billion; its shares were traded at around $34.85 with a P/E ratio of 14.2 and P/S ratio of 1.5. The dividend yield of Campbell Soup Company stocks is 3.1%.
Added: Fedex Corp. (FDX, Financial)
Mason Hawkins added to his holdings in Fedex Corp. by 28.13%. His purchase prices were between $70.7 and $87.29, with an estimated average price of $81.08. The impact to his portfolio due to this purchase was 0.69%. His holdings were 8,267,081 shares as of 09/30/2010.
FedEx Corporation is a global transportation and logistics enterprise that offers customers a one-stop source for global shipping, logistics and supply chain solutions. Fedex Corp. has a market cap of $27.84 billion; its shares were traded at around $88.48 with a P/E ratio of 20.2 and P/S ratio of 0.8. The dividend yield of Fedex Corp. stocks is 0.5%. Fedex Corp. had an annual average earning growth of 1.8% over the past 10 years.
Added: Martin Marietta Materials Inc. (MLM, Financial)
Mason Hawkins added to his holdings in Martin Marietta Materials Inc. by 68.32%. His purchase prices were between $72.61 and $88.4, with an estimated average price of $80.1. The impact to his portfolio due to this purchase was 0.62%. His holdings were 4,424,369 shares as of 09/30/2010.
Martin Marietta Materials producer of aggregates for the construction industry, including highways, infrastructure, commercial and residential. Martin Marietta Materials Inc. has a market cap of $4.03 billion; its shares were traded at around $88.59 with a P/E ratio of 52.2 and P/S ratio of 2.4. The dividend yield of Martin Marietta Materials Inc. stocks is 1.8%. Martin Marietta Materials Inc. had an annual average earning growth of 7.7% over the past 10 years.
Added: Liberty Media Corp. Interactive Common S (LINTA, Financial)
Mason Hawkins added to his holdings in Liberty Media Corp. Interactive Common S by 9.58%. His purchase prices were between $10.23 and $13.84, with an estimated average price of $11.48. The impact to his portfolio due to this purchase was 0.34%. His holdings were 62,916,421 shares as of 09/30/2010.
Liberty Media Corporation owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Liberty Media Corp. Interactive Common S has a market cap of $8.82 billion; its shares were traded at around $15.5 with a P/E ratio of 14 and P/S ratio of 1.1.
Added: Aon (AON, Financial)
Mason Hawkins added to his holdings in Aon by 7.85%. His purchase prices were between $35.62 and $39.62, with an estimated average price of $37.49. The impact to his portfolio due to this purchase was 0.3%. His holdings were 23,546,926 shares as of 09/30/2010.
Aon Corporation is a holding company whose operating subsidiaries carry onbusiness in three distinct segments: insurance brokerage and other services; consulting; and insurance underwriting. Aon has a market cap of $11.26 billion; its shares were traded at around $41.61 with a P/E ratio of 13.1 and P/S ratio of 1.5. The dividend yield of Aon stocks is 1.5%. Aon had an annual average earning growth of 2.7% over the past 10 years.
Added: Texas Industries Inc. (TXI, Financial)
Mason Hawkins added to his holdings in Texas Industries Inc. by 22.9%. His purchase prices were between $27.73 and $34.96, with an estimated average price of $31.73. The impact to his portfolio due to this purchase was 0.12%. His holdings were 4,558,820 shares as of 09/30/2010.
Texas Industries, Inc., is a supplier of construction materials through two business segments: cement, aggregate and concrete products; and structural steel and specialty bar products. Texas Industries Inc. has a market cap of $1.09 billion; its shares were traded at around $39.31 with and P/S ratio of 1.8. The dividend yield of Texas Industries Inc. stocks is 0.8%.
New Purchase: The Travelers Companies Inc. (TRV, Financial)
Mason Hawkins initiated holdings in The Travelers Companies Inc.. His purchase prices were between $48.54 and $53.56, with an estimated average price of $50.53. The impact to his portfolio due to this purchase was 2.61%. His holdings were 11,189,460 shares as of 09/30/2010.
St. Paul Travelers is a provider of commercial property-liability insurance and asset management services. The Travelers Companies Inc. has a market cap of $26.68 billion; its shares were traded at around $56.76 with a P/E ratio of 8.6 and P/S ratio of 1.1. The dividend yield of The Travelers Companies Inc. stocks is 2.5%. The Travelers Companies Inc. had an annual average earning growth of 28.3% over the past 5 years.
New Purchase: Vulcan Materials Company (VMC, Financial)
Mason Hawkins initiated holdings in Vulcan Materials Company. His purchase prices were between $35.7 and $47.38, with an estimated average price of $40.61. The impact to his portfolio due to this purchase was 0.88%. His holdings were 5,343,100 shares as of 09/30/2010.
Vulcan Materials Company is the nation's foremost producer of constructionaggregates, a major producer of other construction materials and a leadingchemicals manufacturer, supplying chloralkali and other industrial andspecialty chemicals. Vulcan Materials Company has a market cap of $5.36 billion; its shares were traded at around $41.81 with and P/S ratio of 2. The dividend yield of Vulcan Materials Company stocks is 2.4%.
Reduced: Verizon Communications Inc. (VZ, Financial)
Mason Hawkins reduced to his holdings in Verizon Communications Inc. by 55.98%. His sale prices were between $26.49 and $32.86, with an estimated average price of $29.48. The impact to his portfolio due to this sale was -0.16%. Mason Hawkins still held 1,920,000 shares as of 09/30/2010.
Verizon Communications, formed by the merger of Bell Atlantic and GTE, is one of the world's providers of high-growth communications services. Verizon Communications Inc. has a market cap of $92.87 billion; its shares were traded at around $32.85 with a P/E ratio of 14.6 and P/S ratio of 0.9. The dividend yield of Verizon Communications Inc. stocks is 5.9%. Verizon Communications Inc. had an annual average earning growth of 2.3% over the past 10 years.
Reduced: Pioneer Natural Resources Company (PXD, Financial)
Mason Hawkins reduced to his holdings in Pioneer Natural Resources Company by 22.99%. His sale prices were between $55.84 and $66.89, with an estimated average price of $60.87. The impact to his portfolio due to this sale was -1.05%. Mason Hawkins still held 15,649,491 shares as of 09/30/2010.
Pioneer Natural Resources is an oil and gas exploration and production company with ownership interests in oil and gas properties located in the United States, Argentina, Canada, South Africa and Gabon. Pioneer Natural Resources Company has a market cap of $9.01 billion; its shares were traded at around $77.66 with a P/E ratio of 55.5 and P/S ratio of 5.2. The dividend yield of Pioneer Natural Resources Company stocks is 0.1%. Pioneer Natural Resources Company had an annual average earning growth of 6.2% over the past 10 years.
Reduced: Yum! Brands Inc. (YUM, Financial)
Mason Hawkins reduced to his holdings in Yum! Brands Inc. by 32.23%. His sale prices were between $38.53 and $46.58, with an estimated average price of $42.65. The impact to his portfolio due to this sale was -2.19%. Mason Hawkins still held 33,044,304 shares as of 09/30/2010.
Yum! Brands Inc. is the one of the world's largest restaurant companies, with restaurants around the world in numerous countries and territories. Yum! Brands Inc. has a market cap of $24 billion; its shares were traded at around $51.39 with a P/E ratio of 21.4 and P/S ratio of 2.2. The dividend yield of Yum! Brands Inc. stocks is 1.9%. Yum! Brands Inc. had an annual average earning growth of 10.1% over the past 10 years. GuruFocus rated Yum! Brands Inc. the business predictability rank of 3.5-star.
In his most recent shareholder letter, Mason Hawkins talks a lot about the economy in the letter. Hawkins notes that many investors have concerns about inflation, deflation, and sovereign debt issues. Hawkins discounts these macro fears by stating that his goal is only to focus on the long term results.
Hawkins still believes that the funds can achieve their goal of inflation plus a 10% returns. He sees returns of 10% alone from the free cash flow that the companies he owns yield.
Mason Hawkins buys The Travelers Companies Inc., Vulcan Materials Company, sells Pioneer Natural Resources Company, Verizon Communications Inc., Yum! Brands Inc. during the 3-months ended 09/30/2010, according to the most recent filings of his investment company, Southeastern Asset Management. Mason Hawkins owns 43 stocks with a total value of $22.4 billion. These are the details of the buys and sells.
- New Purchases: TRV, VMC,
- Added Positions: AON, CPB, FDX, L, LINTA, MLM, TXI,
- Reduced Positions: PXD, VZ, YUM,
This is the sector weightings of his portfolio:
| Consumer Services | 32.4% |
| Financials | 15.1% |
| Oil & Gas | 12.8% |
| Industrials | 12.6% |
| Technology | 10% |
| Telecommunications | 7.1% |
| Consumer Goods | 4.4% |
| Basic Materials | 0.9% |
These are the top 5 holdings of Mason Hawkins
- DIRECTV Group Inc. The (DTV) - 56,730,807 shares, 10.56% of the total portfolio. Shares reduced by 11.38%
- Chesapeake Energy Corp. (CHK) - 81,153,405 shares, 8.22% of the total portfolio. Shares added by 0.42%
- Dell Inc. (DELL) - 141,682,699 shares, 8.21% of the total portfolio. Shares reduced by 0.37%
- The Walt Disney Company Disney (DIS) - 46,192,551 shares, 6.83% of the total portfolio. Shares reduced by 2.2%
- Yum! Brands Inc. (YUM) - 33,044,304 shares, 6.8% of the total portfolio. Shares reduced by 32.23%
Added: Loews Corp. (L, Financial)
Mason Hawkins added to his holdings in Loews Corp. by 209.26%. His purchase prices were between $33.57 and $38.55, with an estimated average price of $36.61. The impact to his portfolio due to this purchase was 2.48%. His holdings were 21,684,900 shares as of 09/30/2010.
Loews Corporation is a holding company. Its subsidiaries are engaged in thefollowing lines of business: property, casualty and life insurance; the production and sale of cigarettes; the operation of hotels; the operation of offshore oil and gas drilling rigs; and the distribution and sale of watches and clocks. Loews Corp. has a market cap of $16.6 billion; its shares were traded at around $39.68 with a P/E ratio of 14 and P/S ratio of 1.2. The dividend yield of Loews Corp. stocks is 0.6%. Loews Corp. had an annual average earning growth of 11% over the past 5 years.
Added: Campbell Soup Company (CPB, Financial)
Mason Hawkins added to his holdings in Campbell Soup Company by 72.15%. His purchase prices were between $35.31 and $37.47, with an estimated average price of $36.32. The impact to his portfolio due to this purchase was 1.27%. His holdings were 18,936,174 shares as of 09/30/2010.
Campbell Soup Company, together with its consolidated subsidiaries, is a global manufacturer and marketer of high quality, branded convenience food products. Campbell Soup Company has a market cap of $11.7 billion; its shares were traded at around $34.85 with a P/E ratio of 14.2 and P/S ratio of 1.5. The dividend yield of Campbell Soup Company stocks is 3.1%.
Added: Fedex Corp. (FDX, Financial)
Mason Hawkins added to his holdings in Fedex Corp. by 28.13%. His purchase prices were between $70.7 and $87.29, with an estimated average price of $81.08. The impact to his portfolio due to this purchase was 0.69%. His holdings were 8,267,081 shares as of 09/30/2010.
FedEx Corporation is a global transportation and logistics enterprise that offers customers a one-stop source for global shipping, logistics and supply chain solutions. Fedex Corp. has a market cap of $27.84 billion; its shares were traded at around $88.48 with a P/E ratio of 20.2 and P/S ratio of 0.8. The dividend yield of Fedex Corp. stocks is 0.5%. Fedex Corp. had an annual average earning growth of 1.8% over the past 10 years.
Added: Martin Marietta Materials Inc. (MLM, Financial)
Mason Hawkins added to his holdings in Martin Marietta Materials Inc. by 68.32%. His purchase prices were between $72.61 and $88.4, with an estimated average price of $80.1. The impact to his portfolio due to this purchase was 0.62%. His holdings were 4,424,369 shares as of 09/30/2010.
Martin Marietta Materials producer of aggregates for the construction industry, including highways, infrastructure, commercial and residential. Martin Marietta Materials Inc. has a market cap of $4.03 billion; its shares were traded at around $88.59 with a P/E ratio of 52.2 and P/S ratio of 2.4. The dividend yield of Martin Marietta Materials Inc. stocks is 1.8%. Martin Marietta Materials Inc. had an annual average earning growth of 7.7% over the past 10 years.
Added: Liberty Media Corp. Interactive Common S (LINTA, Financial)
Mason Hawkins added to his holdings in Liberty Media Corp. Interactive Common S by 9.58%. His purchase prices were between $10.23 and $13.84, with an estimated average price of $11.48. The impact to his portfolio due to this purchase was 0.34%. His holdings were 62,916,421 shares as of 09/30/2010.
Liberty Media Corporation owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Liberty Media Corp. Interactive Common S has a market cap of $8.82 billion; its shares were traded at around $15.5 with a P/E ratio of 14 and P/S ratio of 1.1.
Added: Aon (AON, Financial)
Mason Hawkins added to his holdings in Aon by 7.85%. His purchase prices were between $35.62 and $39.62, with an estimated average price of $37.49. The impact to his portfolio due to this purchase was 0.3%. His holdings were 23,546,926 shares as of 09/30/2010.
Aon Corporation is a holding company whose operating subsidiaries carry onbusiness in three distinct segments: insurance brokerage and other services; consulting; and insurance underwriting. Aon has a market cap of $11.26 billion; its shares were traded at around $41.61 with a P/E ratio of 13.1 and P/S ratio of 1.5. The dividend yield of Aon stocks is 1.5%. Aon had an annual average earning growth of 2.7% over the past 10 years.
Added: Texas Industries Inc. (TXI, Financial)
Mason Hawkins added to his holdings in Texas Industries Inc. by 22.9%. His purchase prices were between $27.73 and $34.96, with an estimated average price of $31.73. The impact to his portfolio due to this purchase was 0.12%. His holdings were 4,558,820 shares as of 09/30/2010.
Texas Industries, Inc., is a supplier of construction materials through two business segments: cement, aggregate and concrete products; and structural steel and specialty bar products. Texas Industries Inc. has a market cap of $1.09 billion; its shares were traded at around $39.31 with and P/S ratio of 1.8. The dividend yield of Texas Industries Inc. stocks is 0.8%.
New Purchase: The Travelers Companies Inc. (TRV, Financial)
Mason Hawkins initiated holdings in The Travelers Companies Inc.. His purchase prices were between $48.54 and $53.56, with an estimated average price of $50.53. The impact to his portfolio due to this purchase was 2.61%. His holdings were 11,189,460 shares as of 09/30/2010.
St. Paul Travelers is a provider of commercial property-liability insurance and asset management services. The Travelers Companies Inc. has a market cap of $26.68 billion; its shares were traded at around $56.76 with a P/E ratio of 8.6 and P/S ratio of 1.1. The dividend yield of The Travelers Companies Inc. stocks is 2.5%. The Travelers Companies Inc. had an annual average earning growth of 28.3% over the past 5 years.
New Purchase: Vulcan Materials Company (VMC, Financial)
Mason Hawkins initiated holdings in Vulcan Materials Company. His purchase prices were between $35.7 and $47.38, with an estimated average price of $40.61. The impact to his portfolio due to this purchase was 0.88%. His holdings were 5,343,100 shares as of 09/30/2010.
Vulcan Materials Company is the nation's foremost producer of constructionaggregates, a major producer of other construction materials and a leadingchemicals manufacturer, supplying chloralkali and other industrial andspecialty chemicals. Vulcan Materials Company has a market cap of $5.36 billion; its shares were traded at around $41.81 with and P/S ratio of 2. The dividend yield of Vulcan Materials Company stocks is 2.4%.
Reduced: Verizon Communications Inc. (VZ, Financial)
Mason Hawkins reduced to his holdings in Verizon Communications Inc. by 55.98%. His sale prices were between $26.49 and $32.86, with an estimated average price of $29.48. The impact to his portfolio due to this sale was -0.16%. Mason Hawkins still held 1,920,000 shares as of 09/30/2010.
Verizon Communications, formed by the merger of Bell Atlantic and GTE, is one of the world's providers of high-growth communications services. Verizon Communications Inc. has a market cap of $92.87 billion; its shares were traded at around $32.85 with a P/E ratio of 14.6 and P/S ratio of 0.9. The dividend yield of Verizon Communications Inc. stocks is 5.9%. Verizon Communications Inc. had an annual average earning growth of 2.3% over the past 10 years.
Reduced: Pioneer Natural Resources Company (PXD, Financial)
Mason Hawkins reduced to his holdings in Pioneer Natural Resources Company by 22.99%. His sale prices were between $55.84 and $66.89, with an estimated average price of $60.87. The impact to his portfolio due to this sale was -1.05%. Mason Hawkins still held 15,649,491 shares as of 09/30/2010.
Pioneer Natural Resources is an oil and gas exploration and production company with ownership interests in oil and gas properties located in the United States, Argentina, Canada, South Africa and Gabon. Pioneer Natural Resources Company has a market cap of $9.01 billion; its shares were traded at around $77.66 with a P/E ratio of 55.5 and P/S ratio of 5.2. The dividend yield of Pioneer Natural Resources Company stocks is 0.1%. Pioneer Natural Resources Company had an annual average earning growth of 6.2% over the past 10 years.
Reduced: Yum! Brands Inc. (YUM, Financial)
Mason Hawkins reduced to his holdings in Yum! Brands Inc. by 32.23%. His sale prices were between $38.53 and $46.58, with an estimated average price of $42.65. The impact to his portfolio due to this sale was -2.19%. Mason Hawkins still held 33,044,304 shares as of 09/30/2010.
Yum! Brands Inc. is the one of the world's largest restaurant companies, with restaurants around the world in numerous countries and territories. Yum! Brands Inc. has a market cap of $24 billion; its shares were traded at around $51.39 with a P/E ratio of 21.4 and P/S ratio of 2.2. The dividend yield of Yum! Brands Inc. stocks is 1.9%. Yum! Brands Inc. had an annual average earning growth of 10.1% over the past 10 years. GuruFocus rated Yum! Brands Inc. the business predictability rank of 3.5-star.
