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Longleaf’s Mason Hawkins Chops Off More Than Half of Potlatch Stake

January 10, 2013 | About:
The tree-growing, timber-selling wood products manufacturer, Potlatch Corp. (PCH) will now see less of Southeastern Asset Management, the adviser to Longleaf Partners Funds.

The investment team, led by CEO Mason Hawkins, has reported selling more than 1.4 million shares, or 51.59 percent of its stake in Potlatch, according to GuruFocus Real Time Picks.

From owning 6.99 percent of the company’s outstanding shares in the third quarter of last year, Hawkins has descended down to 3.4 percent ownership.

The reduction came as soon as Potlatch met its one-year peak, and sudden rise in market value. A week ago, the stock was trading around $38. Today, its price is $40.61, up 0.2 percent, minutes before market close. Since the year began, Potlatch has gone up 5.22 percent.

1357855020680.pngPCH data by GuruFocus.com

From a one-year perspective, Potlatch has returned 30 percent in market value.

As a real estate investment trust (REIT), Potlatch owns about 1.43 million acres of timberland in Arkansas, Idaho and Minnesota. With this land, the company manages every acre under the Forest Stewardship Council silviculture standards, the practice of controlling the growth and quality of forests and woodlands.

With a 3.2 percent dividend yield, and a payout ratio of 1.8, Potlatch maintains a five-year 9.56 percent earnings per share growth rate, according to 10-Year Financials. On Dec. 28, the company distributed its final quarterly payout for the year, which was $0.31 per share to its stockholders.

As of the third quarter of 2012, Hawkins’ then, 2.8 million shares of Potlatch, represented 0.47 percent of his fund’s portfolio. Around the same time, his top holdings were FedEx Corp. (FDX), Bank of New York Mellon Corp. (BK), Vulcan Materials Company (VMC) and Franklin Resources (BEN).

Hawkins holds 41 companies in his portfolio, worth about $22.5 billion.

To view more of Mason Hawkins’ recent trades, visit his latest stock picks. Also view his high-yield stocks, top growth companies and undervalued picks.

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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