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LongLeaf Annual ShareHolder Meeting

LongLeaf Funds had its shareholder meeting on May 5th, 2010. The meeting was recorded for all shareholders who could not attend the meeting. Audio files of the meeting were separated by speaker and topic. The audio files are especially interesting since Mason Hawkins does a lot of speaking. He rarely does interviews, so it is always interesting to hear his commentary and insights. There is also commentary from Ken Siazon who runs the Singapore office, Scott Cobb who runs the London Office, Staley Cates President of the fund family. Cates has been at the fund for nearly 25 years and assists Hawkins in making investment decisions. There are also many other members of the LongLeaf team who spoke at the shareholder meeting.

LongLeaf has three mutual funds; its flagship fund Long Leaf Partner’s fund, Long Leaf International Fund, and Long Leaf small cap fund.

Below is some more information regarding the three funds.

Partners Fund:

Returns:

As of 5/31/10





YEAR-TO-DATE


ONE YEAR


FIVE YEARS


TEN YEARS




PARTNERS

FUND


4.94%


31.72%


0.18%


5.41%




S & P 500

INDEX


(1.50)%


20.99%


0.31%


(0.82)%


Top Ten Holdings



As of 3/31/10


DIRECTV


satellite broadcaster


9.6%


Dell


information technology


7.6%


Chesapeake Energy


natural gas exploration & production


7.2%


Walt Disney


entertainment and broadcasting


7.1%


Yum! Brands


franchisor/owner-Taco Bell, KFC, Pizza Hut


6.2%


Pioneer Natural Resources


oil & gas exploration & production


5.8%


NipponKoa


Japanese non-life insurance


4.7%


Liberty Media Interactive


tv, internet, & catalog retail


4.7%


Cemex


cement company


4.6%


Philips


electronics, medical, & lighting


4.2%


Total




61.7%




LongLeaf International Fund: 45% of the funds equities are Asian equities.

Returns:

As of 5/31/10





YEAR-TO-DATE


ONE YEAR


FIVE YEARS


TEN YEARS




INTL

FUND


(7.25)%


8.11%


0.87%


5.91%




MSCI EAFE

INDEX


(12.36)%


6.38%


1.35%


0.65%




Top ten holdings:



As of 3/31/10


NipponKoa Insurance


non-life insurance


8.3%


Fairfax Financial Holdings


property/casualty insurance


8.1%


Accor


corporate services & hotels


7.9%


Cheung Kong


ports, real estate, & telecom


7.8%


ACS Actividades


construction, infrastructure, & energy


6.4%


Genting Berhad


casino operator


6.0%


Hochtief AG


global infrastructure construction


5.0%


Yum! Brands


franchisor/owner- Taco Bell, KFC, Pizza Hut


4.9%


Olympus


medical imaging & cameras


4.8%


Willis Group


insurance broker


4.8%


Total




64%




Small Cap Fund:



Returns:



As of 5/31/10





YEAR-TO-DATE


ONE YEAR


FIVE YEARS


TEN YEARS




SMALL-CAP

FUND


8.68%


42.53%


4.21%


9.01%




RUSSELL 2000

INDEX


6.29%


33.62%


2.77%


4.71%








Top ten holdings:





As of 3/31/10


tw telecom


telecommunications provider


9.9%


Pioneer Natural Resources


oil & gas exploration & production


7.9%


Fair Isaac


credit scoring software


6.8%


Fairfax Financial Holdings


property/casualty insurance


6.7%


Dillard’s


department store retailer


6.1%


Service Corp International


funeral home/ cemetery operator


4.9%


Wendy's/Arby's


fast food restaurant operator


4.6%


Washington Post


education & media


4.6%


Texas Industries


construction materials


4.5%


DineEquity


developer/franchisor of restaurants


4.4%


Total




60.4%






Below is the full meeting divided by segment. The audio files can be viewed in wma format or mp3 format. Some of the audio files are accompanied by a slide show.







Subject and Speaker


Introduction and update

Lee Harper

(10 Minutes)


Windows

Media Audio


MP3

Audio


Slide Presentation


Performance Update and Governance Initiative

Mason Hawkins

(14 Minutes)


Windows

Media Audio


MP3

Audio


Slide Presentation


Research Team Update

Staley Cates

(9 Minutes)


Windows

Media Audio


MP3

Audio




Investment Case for Cheung Kong

Ken Siazon

(8 Minutes)


Windows

Media Audio


MP3

Audio


Slide Presentation


Investment Case for Accor Scott Cobb

(17 Minutes)


Windows

Media Audio


MP3

Audio




Investment Case for Aon

Jason Dunn

(11 Minutes)


Windows

Media Audio


MP3

Audio




Dell Mason Hawkins,

Staley Cates

(10 Minutes)


Windows

Media Audio


MP3

Audio




Daiwa Mason Hawkins

(1 Minutes)


Windows

Media Audio


MP3

Audio




Level 3 Mason Hawkins,

Staley Cates

(3 Minutes)


Windows

Media Audio


MP3

Audio




Opportunities in pharmaceutical companies Mason Hawkins,

(4 Minutes)


Windows

Media Audio


MP3

Audio




Cash levels and market opportunity Mason Hawkins,

Staley Cates

(2 Minutes)


Windows

Media Audio


MP3

Audio




Opportunities in real estate Mason Hawkins,

Staley Cates

(3 Minutes)


Windows

Media Audio


MP3

Audio




Long-term results more important than short term & analyst compensation Mason Hawkins,

Staley Cates

(9 Minutes)


Windows

Media Audio


MP3

Audio




Currency hedging change Mason Hawkins

(1 Minutes)


Windows

Media Audio


MP3

Audio




Current P/V Ratios Mason Hawkins

(2 Minutes)


Windows

Media Audio


MP3

Audio




Is focus greater on winning or on not losing? Mason Hawkins(2 Minutes)


Windows

Media Audio


MP3

Audio




How broadly do you examine people at a company? Mason Hawkins,

Staley Cates

(2 Minutes)


Windows

Media Audio


MP3

Audio




Do we anticipate getting fully invested?Staley Cates

(2 Minutes)


Windows

Media Audio


MP3

Audio




Which Fund is best opportunity? Mason Hawkins

(1 Minutes)












The full link is here http://www.longleafpartners.com/news/annual_presentation_2010.cfm

About the author:

Jacob Wolinsky
My investment ideas have been inspired by many of value investors including Benjamin Graham, Charles Royce, John Neff, Joel Greenblatt, Peter Lynch, Seth Klarman,Martin Whitman and Bruce Greenwald. .I live with my wife and daughter in Monsey, NY. I can be contacted jacobwolinsky(AT)gmail.com and my blog is www.valuewalk.com

Visit Jacob Wolinsky's Website


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