Mason Hawkins

Mason Hawkins

Last Update: 2014-08-14

Number of Stocks: 27
Number of New Stocks: 1

Total Value: $18,812 Mil
Q/Q Turnover: 2%

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 (%)
201332.1231.550.6
201216.5315.41.1
2011-2.852.08-4.9
3-Year Cumulative49.6 (14.4%/year)55 (15.7%/year)-5.4 (-1.3%/year)
201017.8915.062.8
200953.626.4627.1
5-Year Cumulative170.8 (22.1%/year)125.5 (17.7%/year)45.3 (4.4%/year)
2008-50.6-37-13.6
2007-0.45.61-6.0
200621.615.795.8
20053.64.91-1.3
20047.112-4.9
10-Year Cumulative79.8 (6%/year)104.1 (7.4%/year)-24.3 (-1.4%/year)
200334.828.76.1
2002-8.3-22.113.8
200110.3-11.922.2
200020.6-9.129.7
19992.221-18.8
15-Year Cumulative202.1 (7.7%/year)98.3 (4.7%/year)103.8 (3%/year)
199814.328.6-14.3
199728.333.4-5.1
19962123-2.0
199527.537.6-10.1
199491.37.7
20-Year Cumulative645.1 (10.6%/year)483.2 (9.2%/year)161.9 (1.4%/year)
199322.210.112.1
199220.57.612.9
199139.230.58.7
1990-16.4-3.1-13.3
198923.331.7-8.4
25-Year Cumulative1474.3 (11.7%/year)1050.7 (10.3%/year)423.6 (1.4%/year)
198835.216.618.6

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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I Will Follow Bruce Berkowitz and Move Away From Chesapeake
In this article, let´s consider Chesapeake Energy Corporation (CHK), a $15.74 billion market cap, which has a trailing P/E ratio that indicates that the stock is relatively undervalued (a PE relatively small when compared to the industry median). More...

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Longleaf Partners Fund Comments on Loews
Although Loews (L) was flat in the second quarter, it remained a detractor YTD, down 9%. The first quarter price fell after underlying holdings Diamond Offshore (DO) and Boardwalk Pipeline (BWP) disappointed. In April, DO’s results improved, and the company announced its first share buyback since 2004. After being punished for cutting its dividend in February, BWP outlined several attractive potential projects going forward and recovered in the second quarter. Loews’ other major holding, CNA Financial Corp. had a solid quarter. Loews ramped up its own share repurchases given the discount in the stock and the lack of high-return alternatives for the company’s large net cash of over $8.50/share. More...

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Longleaf Partners Fund Comments on Royal Philips NV
Philips (XAMS:PHIA, PHG) declined 7% in the second quarter and 11% YTD. Foreign currency headwinds impacted reported sales, although comparable revenue was flat. Net debt increased as free cash flow (FCF, excess cash from operations) went to a one-time pension payment and share buybacks. A temporary suspension of production at a U.S. healthcare plant also impacted FCF. Management reaffirmed expectations for a “challenging” 2014, comprised of improved results at Consumer and Lighting but a continued drag from Healthcare. Management previously delivered on every aspect of 2013 targets and remains committed to 100-200 additional basis points (1 to 2%) of margin improvement by 2016. At quarter-end, the company announced plans to merge the LED and automotive lighting units into a standalone company with €1.4 billion in revenue and will explore strategic options for outside investment. This advances management’s “Accelerate” plan to concentrate Philips around Health and Wellness and fundamentally increase shareholder value. More...

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Longleaf Partners Fund Comments on FedEx
In the first quarter, terrible winter weather hurt FedEx (FDX) results, but the stock rebounded 14% over the last three months. When the price was weak, management repurchased almost 10 million shares at a discount, equating to a 13% annualized pace. The stock rose following strong revenue growth and profits in the Ground segment and higher package volume in Express. Management also set expectations for higher margins following the completed cost restructuring over the last two years. Our appraisal grew as the much more profitable Ground business outpaced the larger Express segment that receives most of analysts’ attention. More...

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Longleaf Partners Fund Comments on Level 3 Communications
Fiber and networking company Level 3 Communications (LVLT) announced a deal to acquire tw telecom and returned 12% in the quarter and 32% for the first half. With the deal, Level 3 gets increased tax benefits for its historic NOLs (net operating losses) due to the company’s increased equity capitalization. The transaction also affords an identified $200 million in synergies, roughly half of which come from the straightforward traffic switch onto Level 3’s backbone. The deal is expected to close in the fourth quarter. Beyond the merger, in his first year as CEO, Jeff Storey and his team have delivered solid revenue growth, margin improvements, and higher cash flow guidance. More...

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Longleaf Partners Fund Comments on CONSOL Energy
CONSOL Energy (CNX) returned 15% in the quarter and 21% YTD. The company announced better-than-expected earnings due to lower coal costs and stronger gas pricing and guided gas production growth of 30% over the next two years. Management is focusing on building value per share through monetizing non-core assets and moving forward with a MLP of the midstream gas assets in the second half of 2014. More...

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Longleaf Partners Fund Comments on Cheung Kong Holdings Ltd
Cheung Kong (HKSE:00001), the Hong Kong based conglomerate with businesses around the world, returned 15% in the second quarter, pushing the YTD return to 21%. Over the first half of 2014, management made value-enhancing asset sales across multiple business lines. In the first quarter, Cheung Kong Infrastructure spun off and listed Hong Kong Electric. Additionally, 50% owned affiliate Hutchison Whampoa sold 25% of A.S. Watson Group, the world’s largest health and beauty retailer. In the second quarter, the company paid a HK$7 special dividend with the proceeds of the Watson sale. Sales of residential property in Hong Kong accelerated after some relaxation in stamp duty regulations. With high land valuations, our partners at Cheung Kong exercised the discipline we have come to expect - not acquiring a single piece of land in Hong Kong or China for over a year. More...

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Longleaf Partners Fund Comments on Chesapeake
The biggest performance drivers in the quarter were among the companies that contributed most to YTD gains. Chesapeake (CHK), the U.S. oil and gas exploration and production company, rose 22% in the quarter and was up 15% YTD. During the quarter, the company announced better-than-expected production and realizations and raised yearly guidance on both of these metrics. Management continued to execute on the capital efficiency strategy, highlighted by the spin-off at quarter-end of its oilfield services business into a publicly traded company called Seventy Seven Energy. The spin-off eliminated approximately $1.5 billion of net debt from Chesapeake’s balance sheet. Divestitures of noncore acreage in Oklahoma, Texas, and Pennsylvania were also completed. Our CEO partner, Doug Lawler, is positioning the company to focus on its strong assets in the Eagle Ford, Marcellus and Utica plays, while growing production profitably and keeping capital expenditures within cash flow. More...

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Longleaf Partners Fund Semi Annual 2014 Management Discussion
Longleaf Partners Fund returned 6.8% in the second quarter, outpacing the S&P 500’s return of 5.2%. The Fund slightly trailed the Index year-to-date (YTD), with the performance of each rounding to 7.1%. The Partners Fund remained ahead of the Index as well as our absolute return goal of inflation plus 10% in the trailing year, despite our elevated cash position. More...

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Longleaf Partners Funds 2014 Semi Annual Shareholder Letter
Limited New Qualifiers More...

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Recent Real-Time Picks From The Investing Gurus
Here are some of the most recent Real-Time Picks from the investing gurus: More...

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Mason Hawkins and John Paulson Top GuruFocus Real Time Picks of the Week John Paulson,Mason Hawkins - Mason Hawkins And John Paulson Top GuruFocus Real Time Picks Of The Week
Guru Real Time Picks of the Week More...

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Southeastern Asset Management Increases Stake in TW Telecom by 40 Percent Mason Hawkins - Southeastern Asset Management Increases Stake In TW Telecom By 40 Percent
Southeastern Asset Management, where Mason Hawkins (Trades, Portfolio) is chairman of the board and CEO, enlarged its position in TW Telecom Inc. (TWTC) for the first time after selling it down quarterly since the second quarter of 2011, according to GuruFocus Real Time Picks. The firm holds 15,201,344 shares after making the 40.3% increase on July 10. More...

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Guru Stocks at 52-Week Lows: VOD, EBAY, DB, CNHI, BBBY
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. More...

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Longleaf Partners Comments on DirecTV
During the quarter we exited DIRECTV (DTV), a highly successful core holding in our U.S. and Global accounts for over a decade. We discuss our DTV experience not to showcase one winner, but because the investment illustrates the process and approach we follow for holdings across all mandates and highlights some of Southeastern's unique research strengths. More...

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Longleaf Partners Q1 2014 Shareholder Letter
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Southeastern Asset Management, Chase Coleman Add to Positions Mason Hawkins,Chase Coleman - Southeastern Asset Management, Chase Coleman Add To Positions
Chase Coleman (Trades, Portfolio) of Tiger Global Management and Mason Hawkins (Trades, Portfolio) of Southeastern Asset Management both found two stocks within their portfolios worth growing this week. Southeastern Asset Management seeks deeply discounted but good businesses for its portfolio, which contains 33 stocks and is valued at $20.4 billion. Tiger Global Management is also a fundamental-based firm but which also invests according to long-term sector trends. Its long equity portfolio holds 61 stocks with a combined value of $8 billion. More...

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Mason Hawkins Comments on Level 3 Communications
Level 3 Communications (LVLT) was a key contributor in the fourth quarter, adding 24% and boosting 2013 gains to 44%. The company reported strong results following the appointment of Jeff Storey as CEO in April. Revenue growth and significant cost reductions improved margins. The company also refinanced $2.6 billion in debt. Large internet-based companies looking to control their customer connections highlighted the value of Level 3's dark fiber, which is not reflected in revenues. As management continues to execute, value growth should be meaningful. Growing revenues will especially benefit Level 3 given its fixed-cost asset base, lower-than-average maintenance capital spending, and minimal tax liability. 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 53% for the year. As noted in our third quarter commentary, higher interest rates should improve fiduciary income and help close thepensiongap.Aon'sprivatehealthcare exchange for corporate employees gained critical mass with the addition of Walgreens to the client base. CEO Greg Case and his management team have built value per share through their customer- focused, shareholder-oriented leadership. More...

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Mason Hawkins Comments on Dell
The shareholder approval of Dell (DELL)'s management buyout generated a positive return of 31% for 2013 in spite of the disappointing investment outcome. Philips gained 44% during the year. CEO Frans Van Houten and CFO Ron Wirahadiraksa completed a €2bn stock buyback at discounted prices, as well as delivered higher margins as planned. Philips' management team is pursuing additional cost reductions and believes the company has strong revenue and margin potential over the next two to three years in all three primary businesses: medical, lighting, and consumer lifestyle. They signaled their confidence in the future value growth of the business by announcing another €1.5bn share buyback. More...

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