Mason Hawkins

Mason Hawkins

Last Update: 04-15-2015

Number of Stocks: 28
Number of New Stocks: 3

Total Value: $17,384 Mil
Q/Q Turnover: 16%

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

Mason Hawkins' s Profile & Performance

Profile

Mason Hawkins 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/

Investing Philosophy

Mason Hawkins and his partners are value investors. When evaluating potential investments, they look for three things, "good business, good people, and a good price." Like many successful gurus, he and his partners seek to achieve superior long-term performance by acquiring equity securities in understandable business with strong balance sheets, run by capable management, and trading at less than intrinsic value. Typically, they only invest in companies trading at 60% or less of intrinsic value appraised by looking at the current value of a company's assets and liabilities and also by looking the present value of future cash flows (DCF).They sell stocks when the stocks reach their intrinsic worth. Mason Hawkins believes it is important to have a portfolio concentrated in only the best investment ideas, and the firm generally holds fewer than 25 stocks in each portfolio.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Longleaf Partners Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
20144.9213.69-8.8
201332.1232.39-0.3
201216.53160.5
3-Year Cumulative61.5 (17.3%/year)74.6 (20.4%/year)-13.1 (-3.1%/year)
2011-2.852.11-5.0
201017.8915.062.8
5-Year Cumulative85 (13.1%/year)105.1 (15.5%/year)-20.1 (-2.4%/year)
200953.626.4627.1
2008-50.6-37-13.6
2007-0.45.49-5.9
200621.615.795.8
20053.64.91-1.3
10-Year Cumulative76.1 (5.8%/year)109.4 (7.7%/year)-33.3 (-1.9%/year)
20047.110.88-3.8
200334.828.686.1
2002-8.3-22.113.8
200110.3-11.8922.2
200020.6-9.129.7
15-Year Cumulative210.2 (7.8%/year)86.4 (4.2%/year)123.8 (3.6%/year)
19992.221.04-18.8
199814.328.58-14.3
199728.333.36-5.1
19962122.96-2.0
199527.537.58-10.1
20-Year Cumulative617.2 (10.4%/year)554.6 (9.8%/year)62.6 (0.6%/year)
199491.327.7
199322.210.0812.1
199220.57.6212.9
199139.230.478.7
1990-16.4-3.1-13.3
25-Year Cumulative1239.6 (10.9%/year)893.3 (9.6%/year)346.3 (1.3%/year)
198923.331.69-8.4
198835.216.6118.6

Top Ranked Articles

Interview with Mason Hawkins and Staley Cates of Longleaf Funds; Today’s Opportunities for Value Investors
O. Mason Hawkins and G. Staley Cates are two of the most respected value investors. Based in Memphis, TN, their firm, Southeastern Asset Management, is a $35-billion, independently owned, registered investment advisory firm. Southeastern Asset Management also advises the Longleaf Partners group of no-load mutual funds: Longleaf Partners Fund, Longleaf Partners International Fund and Longleaf Partners Small Cap Fund, as well as an Irish-based UCITs fund for non-US investors, Longleaf Partners Global Fund. Hawkins is the firm’s chairman and chief executive officer and Cates is its president and chief investment officer. Read more...
Why Do Gurus Like Microsoft, Dell and Cisco? Which One Is Better Than the Others?
The dramatic recovery of the stock market over the past two years has brought the market to overvalued levels, as measured our broad market valuation indications based on the ratio of the total market cap over gross national product. This market recovery is broad across all sectors and industries. Very few companies are now traded at 52-week lows, while many companies are at 52-week highs. While investors are happy with the market returns over the past two years, many value Gurus are having a hard time finding investment ideas that can still provide reasonable returns at acceptable risks. One area where they find ideas is large cap stocks that did not go up as much as the general market. They bought into technology companies such as Microsoft (MSFT), Cisco (CSCO) and Dell (DELL). Those Wall Street darlings in the go-go years of the 1990s typically do not get into the portfolios of value investors. Now they do. Read more...
Mason Hawkins' Thoughts on The Macro Picture and His Recent Buys: BRK.A, BRK.B, DTV, CHK, TX, BNY, EWG, SPY, VTI
From Mason Hawkins of LongLeaf Partners: Read more...
Mason Hawkins of Longleaf Partners Interview with GuruFocus
Mason Hawkins is chairman and chief executive officer of Longleaf Partners, an investment advisory firm with $34 billion in assets under management. He recently took investing questions from GuruFocus readers. Here are his responses: Read more...
The Value of Vodafone
Here's an idea for the June contest: Vodafone (VOD). Read more...
» More Mason Hawkins Articles

Commentaries and Stories

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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. More...

Mason Hawkins, Murphy Oil


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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. More...

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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 More...

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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. More...

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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. More...

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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. More...

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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. More...

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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. More...

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Mason Hawkins Increases Holdings in CNX and DWA Mason Hawkins - 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%. More...

SOUTHEASTERN ASSET MANAGEMENT, STOCKS, Mason Hawkins


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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. More...

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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. More...

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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. More...

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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. More...

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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. More...

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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. More...

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Mason Hawkins' Longleaf Partners Boosts Stake in 2 Companies Mason Hawkins - 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 (DWA) and Level 3 Communications (LVLT). More...

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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. More...

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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. More...

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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. More...

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Mason Hawkins Comments on Loews
For the YTD period Loews (L) was the Fund’s primary performance detractor, down 13% after a 5% decline in the quarter. The stock fell because of pressure on its energy-related investments in Diamond Offshore, the drilling company, and to a lesser degree Boardwalk Pipeline. Loews recently announced the sale of Highmount Exploration and Production in line with our anticipated price. Through the last reported period in July, the company aggressively repurchased shares. More...

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