Mason Hawkins of Longleaf funds reported his Q4 portfolio. As of 12/31/2010, Southeastern Asset Management owns 44 stocks with a total value of $24.6 billion. These are the details of the buys and sells.
Longleaf Funds have been in business for more than three decades. For the twenty years ended on Dec. 31, 2010, Longleaf Partners Funds returned 12.3% a year. For the 10-year period, the fund averaged 5.1% a year.
Longleaf managers did experience some setbacks in the past 3 years. The fund lost more than 50% in 2008, and underperformed in the last 5 years.
While a lot of value investors now put more attention on macro picture, Longleaf Partners stays with their bottom up fundamental value investing approach. Longleaf does not agree with many other value investors on investing large cap high quality stocks either. They wrote in their latest shareholder letter:
In our 35 year experience the following characteristics when purchased at a steep discount (price matters), almost always lead to investment success.
• Distinct and sustainable competitive advantages that enable pricing power, earnings growth, and stable or increasing profit margins.
• High returns on capital and on equity as measured by free cash flow rather than earnings, which are subject to so much accounting gimmickry.
• A properly geared balance sheet that takes advantage of the lower cost of debt versus equity but will not overextend the company in tough times. The debt/equity ratio is only one measure for capital structure prudence. We consider overall leverage versus the sum of the parts value of a company.We also review debt structure, covenants, and major maturity dates as well as operating cash flow/interest coverage to determine whether a company can meet its obligations comfortably.
• Corporate management's operating skills, capital allocation prowess, and properly aligned, ownership-based incentives. In over three-and-one-half decades our investments that have outperformed most have been due in large part to capable, vested owner-operators who made decisions that increased business quality as well as value per share.
The Longleaf Funds own primarily high quality businesses today, many of which remain misunderstood and therefore cheap.
This is the portfolio chart of Mason Hawkins. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Mason Hawkins
Reduced: Telephone And Data Systems Inc. (TDS.S)
Mason Hawkins reduced to his holdings in Telephone And Data Systems Inc. by 2.48%. The impact to his portfolio due to this sale was 0.03%. Mason Hawkins still held 9,993,525 shares as of 12/31/2010.
Telephone & Data Systems is a diversified telecommunications corporation. Telephone And Data Systems Inc. has a market cap of $1.39 billion; its shares were traded at around $28.96 with and P/S ratio of 0.3. The dividend yield of Telephone And Data Systems Inc. stocks is 1.5%.
Added: Loews Corp. (L)
Mason Hawkins added to his holdings in Loews Corp. by 10.01%. His purchase prices were between $37.41 and $40.08, with an estimated average price of $38.91. The impact to his portfolio due to this purchase was 0.34%. His holdings were 23,856,347 shares as of 12/31/2010.
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 $18 billion; its shares were traded at around $43.24 with a P/E ratio of 14.1 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: Bank Of New York Mellon Corp. (BK)
Mason Hawkins added to his holdings in Bank Of New York Mellon Corp. by 7.05%. His purchase prices were between $24.93 and $30.52, with an estimated average price of $27.46. The impact to his portfolio due to this purchase was 0.25%. His holdings were 31,296,014 shares as of 12/31/2010.
Bank of New York is a bank holding company and one of the world's larger financial institutions. Bank Of New York Mellon Corp. has a market cap of $38.7 billion; its shares were traded at around $31.2 with a P/E ratio of 13.2 and P/S ratio of 2.8. The dividend yield of Bank Of New York Mellon Corp. stocks is 1.1%.
Added: Dell Inc. (DELL)
Mason Hawkins added to his holdings in Dell Inc. by 2.45%. His purchase prices were between $12.9 and $14.71, with an estimated average price of $13.89. The impact to his portfolio due to this purchase was 0.19%. His holdings were 145,155,871 shares as of 12/31/2010.
Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $29.61 billion; its shares were traded at around $15.34 with a P/E ratio of 11.3 and P/S ratio of 0.6. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
Added: Vulcan Materials Company (VMC)
Mason Hawkins added to his holdings in Vulcan Materials Company by 18%. His purchase prices were between $35.89 and $47.37, with an estimated average price of $40.38. The impact to his portfolio due to this purchase was 0.17%. His holdings were 6,304,900 shares as of 12/31/2010.
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 $6.03 billion; its shares were traded at around $46.98 with and P/S ratio of 2.3. The dividend yield of Vulcan Materials Company stocks is 2.2%.
Added: Markel Corp. (MKL)
Mason Hawkins added to his holdings in Markel Corp. by 7.99%. His purchase prices were between $335.02 and $383.6, with an estimated average price of $357.3. The impact to his portfolio due to this purchase was 0.1%. His holdings were 863,349 shares as of 12/31/2010.
Markel Corporation markets and underwrites specialty insurance products andprograms to a variety of niche markets. Markel Corp. has a market cap of $4.09 billion; its shares were traded at around $420.75 with a P/E ratio of 16.2 and P/S ratio of 1.8.
New Purchase: News Corp. (NWSA)
Mason Hawkins initiated holdings in News Corp.. His purchase prices were between $12.97 and $14.95, with an estimated average price of $14.26. The impact to his portfolio due to this purchase was 3.2%. His holdings were 54,093,340 shares as of 12/31/2010.
NEWS CORPORATION is a diversified entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers and information services; book publishing; and other. News Corp. has a market cap of $31.83 billion; its shares were traded at around $17.43 with a P/E ratio of 16.5 and P/S ratio of 0.9. The dividend yield of News Corp. stocks is 0.9%.
New Purchase: Vail Resorts Inc. (MTN)
Mason Hawkins initiated holdings in Vail Resorts Inc.. His purchase prices were between $38.44 and $53.43, with an estimated average price of $45.24. The impact to his portfolio due to this purchase was 0.46%. His holdings were 2,166,100 shares as of 12/31/2010.
Vail Resorts, Inc. is one of the resort operators in North America. Vail Resorts Inc. has a market cap of $1.78 billion; its shares were traded at around $49.56 with a P/E ratio of 67.9 and P/S ratio of 2.1. Vail Resorts Inc. had an annual average earning growth of 6.6% over the past 10 years. GuruFocus rated Vail Resorts Inc. the business predictability rank of 2.5-star.
New Purchase: Lockheed Martin Corp. (LMT)
Mason Hawkins initiated holdings in Lockheed Martin Corp.. His purchase prices were between $68.04 and $73.29, with an estimated average price of $70.04. The impact to his portfolio due to this purchase was 0.28%. His holdings were 986,117 shares as of 12/31/2010.
Lockheed Martin Corp. is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. Lockheed Martin Corp. has a market cap of $29.49 billion; its shares were traded at around $81.9 with a P/E ratio of 11.1 and P/S ratio of 0.6. The dividend yield of Lockheed Martin Corp. stocks is 3.7%. Lockheed Martin Corp. had an annual average earning growth of 16.6% over the past 10 years. GuruFocus rated Lockheed Martin Corp. the business predictability rank of 4.5-star.
Reduced: Telephone & Data System (TDS)
Mason Hawkins reduced to his holdings in Telephone & Data System by 31.8%. His sale prices were between $32.95 and $37.72, with an estimated average price of $35.44. The impact to his portfolio due to this sale was -0.1%. Mason Hawkins still held 1,428,878 shares as of 12/31/2010.
Telephone & Data Systems is a diversified telecommunications corporation. Telephone & Data System has a market cap of $3.56 billion; its shares were traded at around $34.13 with a P/E ratio of 23.7 and P/S ratio of 0.7. The dividend yield of Telephone & Data System stocks is 1.3%.
Sold Out: Shanda Games Ltd. (GAME)
Mason Hawkins sold out his holdings in Shanda Games Ltd.. His sale prices were between $5.6 and $6.9, with an estimated average price of $6.22.
Shanda Games Limited is a holding company. The company through its subsidiaries engages in the development and operation of online games. Shanda Games Ltd. has a market cap of $1.76 billion; its shares were traded at around $6.11 with a P/E ratio of 9 and P/S ratio of 2.5.
Sold Out: Intercontinental Hotels Group Plc (IHG)
Mason Hawkins sold out his holdings in Intercontinental Hotels Group Plc. His sale prices were between $17.2 and $20.04, with an estimated average price of $18.89.
InterContinental Hotels Group offers information and reservations capability on the Internet for InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn hotels, Holiday Inn Express hotels, and Staybridge Suites by Holiday Inn hotels. Intercontinental Hotels Group Plc has a market cap of $6.68 billion; its shares were traded at around $23.1 with and P/S ratio of 4.3. The dividend yield of Intercontinental Hotels Group Plc stocks is 1.8%.
Added: Level 3 Communications Inc. (LVLT)
Mason Hawkins added to his holdings in Level 3 Communications Inc. by 12.09%. His purchase prices were between $0.94 and $1.29, with an estimated average price of $1.08. The impact to his portfolio due to this purchase was 0.32%. His holdings were 537,757,880 shares as of 12/31/2010.
Level 3 Communications is an international communications and information services company. Level 3 Communications Inc. has a market cap of $2.35 billion; its shares were traded at around $1.41 with and P/S ratio of 0.7.
Reduced: Yum Brands Inc. (YUM)
Mason Hawkins reduced to his holdings in Yum Brands Inc. by 8.51%. His sale prices were between $46.4 and $51.39, with an estimated average price of $49.41. The impact to his portfolio due to this sale was 0.62%. Mason Hawkins still held 30,231,270 shares as of 12/31/2010.
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 $24.08 billion; its shares were traded at around $51.38 with a P/E ratio of 20.3 and P/S ratio of 2.1. The dividend yield of Yum Brands Inc. stocks is 2%. 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.
Added: Dell Inc. (DELL)
Mason Hawkins added to his holdings in Dell Inc. by 20.1%. His purchase prices were between $13.15 and $14.49, with an estimated average price of $13.71. The impact to his portfolio due to this purchase was 1.77%. His holdings were 170,155,871 shares as of 12/31/2010.
Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $29.61 billion; its shares were traded at around $15.34 with a P/E ratio of 11.3 and P/S ratio of 0.6. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
Added: Dillards Inc. (DDS)
Mason Hawkins added to his holdings in Dillards Inc. by 78.83%. The impact to his portfolio due to this purchase was 0.53%. His holdings were 6,664,270 shares as of 12/31/2010.
Dillard's Inc. is one of the nation's largest fashion apparel and home furnishings retailers. Dillards Inc. has a market cap of $2.65 billion; its shares were traded at around $42.63 with a P/E ratio of 21.6 and P/S ratio of 0.4. The dividend yield of Dillards Inc. stocks is 0.4%.
Added: Loews Corp. (L)
Mason Hawkins added to his holdings in Loews Corp. by 10.01%. His purchase prices were between $37.41 and $41.4, with an estimated average price of $39.24. The impact to his portfolio due to this purchase was 0.4%. His holdings were 23,856,347 shares as of 12/31/2010.
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 $18 billion; its shares were traded at around $43.24 with a P/E ratio of 14.1 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: Markel Corp. (MKL)
Mason Hawkins added to his holdings in Markel Corp. by 7.99%. His purchase prices were between $353 and $412, with an estimated average price of $377.85. The impact to his portfolio due to this purchase was 0.12%. His holdings were 863,349 shares as of 12/31/2010.
Markel Corporation markets and underwrites specialty insurance products andprograms to a variety of niche markets. Markel Corp. has a market cap of $4.09 billion; its shares were traded at around $420.75 with a P/E ratio of 16.2 and P/S ratio of 1.8.
Added: Chesapeake Energy Corp. (CHK)
Mason Hawkins added to his holdings in Chesapeake Energy Corp. by 0.86%. His purchase prices were between $21.12 and $30.51, with an estimated average price of $25.12. The impact to his portfolio due to this purchase was 0.09%. His holdings were 81,848,897 shares as of 12/31/2010.
Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp. has a market cap of $19.94 billion; its shares were traded at around $30.49 with a P/E ratio of 10 and P/S ratio of 2.6. The dividend yield of Chesapeake Energy Corp. stocks is 0.9%. Chesapeake Energy Corp. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Chesapeake Energy Corp. the business predictability rank of 2-star.
Added: Service Corp Intl. (SCI)
Mason Hawkins added to his holdings in Service Corp Intl. by 6.22%. His purchase prices were between $7.86 and $8.98, with an estimated average price of $8.32. The impact to his portfolio due to this purchase was 0.07%. His holdings were 31,828,484 shares as of 12/31/2010.
Service Corp. is the largest provider of funeral and cemetery services in the world. Service Corp Intl. has a market cap of $2.72 billion; its shares were traded at around $11.11 with a P/E ratio of 18.8 and P/S ratio of 1.2. The dividend yield of Service Corp Intl. stocks is 1.4%. Service Corp Intl. had an annual average earning growth of 4.1% over the past 10 years.
Added: Wendys International Inc. (WEN)
Mason Hawkins added to his holdings in Wendys International Inc. by 9.67%. His purchase prices were between $4.47 and $5.19, with an estimated average price of $4.73. The impact to his portfolio due to this purchase was 0.06%. His holdings were 29,705,000 shares as of 12/31/2010.
WENDY'S/ARBY'S GROUP, Inc. is the third largest quick-service restaurant company in the United States and is the franchisor of the Wendy's and Arby's restaurant systems. Wendys International Inc. has a market cap of $2.08 billion; its shares were traded at around $4.96 with a P/E ratio of 35.5 and P/S ratio of 0.6. The dividend yield of Wendys International Inc. stocks is 1.6%.
Added: Tw Telecom Inc. (TWTC)
Mason Hawkins added to his holdings in Tw Telecom Inc. by 1.26%. His purchase prices were between $16.23 and $18.02, with an estimated average price of $17. The impact to his portfolio due to this purchase was 0.03%. His holdings were 27,536,111 shares as of 12/31/2010.
TW TELECOM INC., headquartered in Littleton, Colo., provides managed network services, specializing in Ethernet and transport data networking, Internet access, local and long distance voice, VoIP, VPN and security, to enterprise organizations and communications services companies throughout the U. Tw Telecom Inc. has a market cap of $2.87 billion; its shares were traded at around $18.95 with a P/E ratio of 47.3 and P/S ratio of 2.3. Tw Telecom Inc. had an annual average earning growth of 7.3% over the past 10 years. GuruFocus rated Tw Telecom Inc. the business predictability rank of 2.5-star.
Added: Martin Marietta Materials (MLM)
Mason Hawkins added to his holdings in Martin Marietta Materials by 1.23%. His purchase prices were between $81.62 and $94.8, with an estimated average price of $87.53. The impact to his portfolio due to this purchase was 0.02%. His holdings were 4,478,670 shares as of 12/31/2010.
Martin Marietta Materials producer of aggregates for the construction industry, including highways, infrastructure, commercial and residential. Martin Marietta Materials has a market cap of $4.19 billion; its shares were traded at around $92.08 with a P/E ratio of 44 and P/S ratio of 2.3. The dividend yield of Martin Marietta Materials stocks is 1.8%. Martin Marietta Materials had an annual average earning growth of 7.7% over the past 10 years.
Added: Potlatch Corp. (PCH)
Mason Hawkins added to his holdings in Potlatch Corp. by 2.32%. His purchase prices were between $31.56 and $37.75, with an estimated average price of $33.5. The impact to his portfolio due to this purchase was 0.01%. His holdings were 2,727,094 shares as of 12/31/2010.
Potlatch Corp. is an integrated forest products company with substantial timber resources. Potlatch Corp. has a market cap of $1.56 billion; its shares were traded at around $39.09 with a P/E ratio of 36.9 and P/S ratio of 2.8. The dividend yield of Potlatch Corp. stocks is 5.2%.
Reduced: Directv (DTV)
Mason Hawkins reduced to his holdings in Directv by 10.43%. His sale prices were between $39.26 and $43.02, with an estimated average price of $41.33. The impact to his portfolio due to this sale was 1.13%. Mason Hawkins still held 50,816,036 shares as of 12/31/2010.
DIRECTV is a provider of digital multichannel television entertainment in the United States and Latin America. Directv has a market cap of $36.93 billion; its shares were traded at around $44.29 with a P/E ratio of 20 and P/S ratio of 1.7. Directv had an annual average earning growth of 33.4% over the past 10 years.
Reduced: Liberty Media Corp. Series A (LINTA)
Mason Hawkins reduced to his holdings in Liberty Media Corp. Series A by 2.11%. His sale prices were between $15.09 and $16.37, with an estimated average price of $15.82. The impact to his portfolio due to this sale was 0.1%. Mason Hawkins still held 61,585,872 shares as of 12/31/2010.
Liberty Media Corporation owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Liberty Media Corp. Series A has a market cap of $9.92 billion; its shares were traded at around $17.44 with a P/E ratio of 15.7 and P/S ratio of 1.2.
Reduced: Ruddick Corp. (RDK)
Mason Hawkins reduced to his holdings in Ruddick Corp. by 19.12%. His sale prices were between $33.58 and $38.4, with an estimated average price of $36.37. The impact to his portfolio due to this sale was 0.1%. Mason Hawkins still held 2,553,000 shares as of 12/31/2010.
RUDDICK CORP. is a diversified holding company which, through its subsidiaries, is in 4 primary businesses: Harris Teeter, Inc. Ruddick Corp. has a market cap of $1.8 billion; its shares were traded at around $36.7 with a P/E ratio of 15.3 and P/S ratio of 0.4. The dividend yield of Ruddick Corp. stocks is 1.4%. Ruddick Corp. had an annual average earning growth of 7.3% over the past 10 years. GuruFocus rated Ruddick Corp. the business predictability rank of 2-star.
Reduced: Fair Isaac Coporation (FICO)
Mason Hawkins reduced to his holdings in Fair Isaac Coporation by 7.95%. His sale prices were between $22.52 and $25.99, with an estimated average price of $23.96. The impact to his portfolio due to this sale was 0.08%. Mason Hawkins still held 8,612,544 shares as of 12/31/2010.
Fair Isaac Corporation makes decisions smarter. The company's solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Fair Isaac Coporation has a market cap of $1.12 billion; its shares were traded at around $28.12 with a P/E ratio of 18.9 and P/S ratio of 1.9. The dividend yield of Fair Isaac Coporation stocks is 0.3%. Fair Isaac Coporation had an annual average earning growth of 5.5% over the past 10 years.
Reduced: Aon Corp. (AON)
Mason Hawkins reduced to his holdings in Aon Corp. by 1.35%. His sale prices were between $40.12 and $48.16, with an estimated average price of $43.92. The impact to his portfolio due to this sale was 0.07%. Mason Hawkins still held 23,228,886 shares as of 12/31/2010.
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 Corp. has a market cap of $17.13 billion; its shares were traded at around $51.92 with a P/E ratio of 16.8 and P/S ratio of 2. The dividend yield of Aon Corp. stocks is 1.2%. Aon Corp. had an annual average earning growth of 2.7% over the past 10 years.
Reduced: Everest Re Group Ltd. (RE)
Mason Hawkins reduced to his holdings in Everest Re Group Ltd. by 1.37%. His sale prices were between $82.55 and $88.38, with an estimated average price of $84.81. The impact to his portfolio due to this sale was 0.03%. Mason Hawkins still held 5,394,848 shares as of 12/31/2010.
Everest Re Group, Ltd. is a world leader in property and casualty reinsurance and insurance, offering innovative products, responsive service and unsurpassed financial strength. Everest Re Group Ltd. has a market cap of $4.9 billion; its shares were traded at around $89.1 with a P/E ratio of 9.6 and P/S ratio of 1. The dividend yield of Everest Re Group Ltd. stocks is 2.2%.
Reduced: Campbell Soup Company (CPB)
Mason Hawkins reduced to his holdings in Campbell Soup Company by 0.61%. His sale prices were between $33.87 and $36.05, with an estimated average price of $34.58. The impact to his portfolio due to this sale was 0.02%. Mason Hawkins still held 18,821,605 shares as of 12/31/2010.
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 $11.65 billion; its shares were traded at around $34.94 with a P/E ratio of 14.5 and P/S ratio of 1.5. The dividend yield of Campbell Soup Company stocks is 3.4%. Campbell Soup Company had an annual average earning growth of 3% over the past 10 years.
Reduced: Willis Group Holdings Ltd. (WSH)
Mason Hawkins reduced to his holdings in Willis Group Holdings Ltd. by 0.29%. His sale prices were between $31.83 and $37.96, with an estimated average price of $34.43. The impact to his portfolio due to this sale was 0.01%. Mason Hawkins still held 15,012,255 shares as of 12/31/2010.
Willis Group is a global insurance broker providing specialized risk management, advisory, and other services to a broad range of corporate andinstitutional clients, with particular expertise in the construction, aerospace, marine and energy industries. Willis Group Holdings Ltd. has a market cap of $6.67 billion; its shares were traded at around $39.11 with a P/E ratio of 14.2 and P/S ratio of 2. The dividend yield of Willis Group Holdings Ltd. stocks is 2.7%. Willis Group Holdings Ltd. had an annual average earning growth of 8.3% over the past 10 years.
Also check out:
Longleaf Funds have been in business for more than three decades. For the twenty years ended on Dec. 31, 2010, Longleaf Partners Funds returned 12.3% a year. For the 10-year period, the fund averaged 5.1% a year.
Longleaf managers did experience some setbacks in the past 3 years. The fund lost more than 50% in 2008, and underperformed in the last 5 years.
While a lot of value investors now put more attention on macro picture, Longleaf Partners stays with their bottom up fundamental value investing approach. Longleaf does not agree with many other value investors on investing large cap high quality stocks either. They wrote in their latest shareholder letter:
In our 35 year experience the following characteristics when purchased at a steep discount (price matters), almost always lead to investment success.
• Distinct and sustainable competitive advantages that enable pricing power, earnings growth, and stable or increasing profit margins.
• High returns on capital and on equity as measured by free cash flow rather than earnings, which are subject to so much accounting gimmickry.
• A properly geared balance sheet that takes advantage of the lower cost of debt versus equity but will not overextend the company in tough times. The debt/equity ratio is only one measure for capital structure prudence. We consider overall leverage versus the sum of the parts value of a company.We also review debt structure, covenants, and major maturity dates as well as operating cash flow/interest coverage to determine whether a company can meet its obligations comfortably.
• Corporate management's operating skills, capital allocation prowess, and properly aligned, ownership-based incentives. In over three-and-one-half decades our investments that have outperformed most have been due in large part to capable, vested owner-operators who made decisions that increased business quality as well as value per share.
The Longleaf Funds own primarily high quality businesses today, many of which remain misunderstood and therefore cheap.
This is the portfolio chart of Mason Hawkins. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.
- New Purchases: NWSA, MTN, LMT,
- Added Positions: L, BK, DELL, VMC, MKL, LVLT, DELL, DDS, L, MKL, CHK, SCI, WEN, TWTC, MLM, PCH,
- Reduced Positions: TDS.S, TDS, YUM, DTV, RDK, LINTA, FICO, AON, RE, CPB, WSH,
- Sold Out: GAME, IHG,
This is the sector weightings of his portfolio:
| Consumer Services | 31.9% |
| Financials | 15.5% |
| Industrials | 13.9% |
| Oil & Gas | 13% |
| Technology | 9.7% |
| Telecommunications | 6.4% |
| Consumer Goods | 3.9% |
| Basic Materials | 0.9% |
These are the top 5 holdings of Mason Hawkins
- CHESAPEAKE ENERGY CORP. (CHK) - 81,848,897 shares, 8.6% of the total portfolio. Shares added by 0.86%
- DIRECTV (DTV) - 50,816,036 shares, 8.23% of the total portfolio. Shares reduced by 10.43%
- Dell Inc. (DELL) - 145,155,871 shares, 7.98% of the total portfolio. Shares added by 2.45%
- YUM BRANDS INC. (YUM) - 30,231,270 shares, 6.02% of the total portfolio. Shares reduced by 8.51%
- CEMEX S.A.B. DE C.V. (CX) - 132,803,723 shares, 5.77% of the total portfolio. Shares reduced by 0.89%
Reduced: Telephone And Data Systems Inc. (TDS.S)
Mason Hawkins reduced to his holdings in Telephone And Data Systems Inc. by 2.48%. The impact to his portfolio due to this sale was 0.03%. Mason Hawkins still held 9,993,525 shares as of 12/31/2010.
Telephone & Data Systems is a diversified telecommunications corporation. Telephone And Data Systems Inc. has a market cap of $1.39 billion; its shares were traded at around $28.96 with and P/S ratio of 0.3. The dividend yield of Telephone And Data Systems Inc. stocks is 1.5%.
Added: Loews Corp. (L)
Mason Hawkins added to his holdings in Loews Corp. by 10.01%. His purchase prices were between $37.41 and $40.08, with an estimated average price of $38.91. The impact to his portfolio due to this purchase was 0.34%. His holdings were 23,856,347 shares as of 12/31/2010.
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 $18 billion; its shares were traded at around $43.24 with a P/E ratio of 14.1 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: Bank Of New York Mellon Corp. (BK)
Mason Hawkins added to his holdings in Bank Of New York Mellon Corp. by 7.05%. His purchase prices were between $24.93 and $30.52, with an estimated average price of $27.46. The impact to his portfolio due to this purchase was 0.25%. His holdings were 31,296,014 shares as of 12/31/2010.
Bank of New York is a bank holding company and one of the world's larger financial institutions. Bank Of New York Mellon Corp. has a market cap of $38.7 billion; its shares were traded at around $31.2 with a P/E ratio of 13.2 and P/S ratio of 2.8. The dividend yield of Bank Of New York Mellon Corp. stocks is 1.1%.
Added: Dell Inc. (DELL)
Mason Hawkins added to his holdings in Dell Inc. by 2.45%. His purchase prices were between $12.9 and $14.71, with an estimated average price of $13.89. The impact to his portfolio due to this purchase was 0.19%. His holdings were 145,155,871 shares as of 12/31/2010.
Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $29.61 billion; its shares were traded at around $15.34 with a P/E ratio of 11.3 and P/S ratio of 0.6. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
Added: Vulcan Materials Company (VMC)
Mason Hawkins added to his holdings in Vulcan Materials Company by 18%. His purchase prices were between $35.89 and $47.37, with an estimated average price of $40.38. The impact to his portfolio due to this purchase was 0.17%. His holdings were 6,304,900 shares as of 12/31/2010.
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 $6.03 billion; its shares were traded at around $46.98 with and P/S ratio of 2.3. The dividend yield of Vulcan Materials Company stocks is 2.2%.
Added: Markel Corp. (MKL)
Mason Hawkins added to his holdings in Markel Corp. by 7.99%. His purchase prices were between $335.02 and $383.6, with an estimated average price of $357.3. The impact to his portfolio due to this purchase was 0.1%. His holdings were 863,349 shares as of 12/31/2010.
Markel Corporation markets and underwrites specialty insurance products andprograms to a variety of niche markets. Markel Corp. has a market cap of $4.09 billion; its shares were traded at around $420.75 with a P/E ratio of 16.2 and P/S ratio of 1.8.
New Purchase: News Corp. (NWSA)
Mason Hawkins initiated holdings in News Corp.. His purchase prices were between $12.97 and $14.95, with an estimated average price of $14.26. The impact to his portfolio due to this purchase was 3.2%. His holdings were 54,093,340 shares as of 12/31/2010.
NEWS CORPORATION is a diversified entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers and information services; book publishing; and other. News Corp. has a market cap of $31.83 billion; its shares were traded at around $17.43 with a P/E ratio of 16.5 and P/S ratio of 0.9. The dividend yield of News Corp. stocks is 0.9%.
New Purchase: Vail Resorts Inc. (MTN)
Mason Hawkins initiated holdings in Vail Resorts Inc.. His purchase prices were between $38.44 and $53.43, with an estimated average price of $45.24. The impact to his portfolio due to this purchase was 0.46%. His holdings were 2,166,100 shares as of 12/31/2010.
Vail Resorts, Inc. is one of the resort operators in North America. Vail Resorts Inc. has a market cap of $1.78 billion; its shares were traded at around $49.56 with a P/E ratio of 67.9 and P/S ratio of 2.1. Vail Resorts Inc. had an annual average earning growth of 6.6% over the past 10 years. GuruFocus rated Vail Resorts Inc. the business predictability rank of 2.5-star.
New Purchase: Lockheed Martin Corp. (LMT)
Mason Hawkins initiated holdings in Lockheed Martin Corp.. His purchase prices were between $68.04 and $73.29, with an estimated average price of $70.04. The impact to his portfolio due to this purchase was 0.28%. His holdings were 986,117 shares as of 12/31/2010.
Lockheed Martin Corp. is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. Lockheed Martin Corp. has a market cap of $29.49 billion; its shares were traded at around $81.9 with a P/E ratio of 11.1 and P/S ratio of 0.6. The dividend yield of Lockheed Martin Corp. stocks is 3.7%. Lockheed Martin Corp. had an annual average earning growth of 16.6% over the past 10 years. GuruFocus rated Lockheed Martin Corp. the business predictability rank of 4.5-star.
Reduced: Telephone & Data System (TDS)
Mason Hawkins reduced to his holdings in Telephone & Data System by 31.8%. His sale prices were between $32.95 and $37.72, with an estimated average price of $35.44. The impact to his portfolio due to this sale was -0.1%. Mason Hawkins still held 1,428,878 shares as of 12/31/2010.
Telephone & Data Systems is a diversified telecommunications corporation. Telephone & Data System has a market cap of $3.56 billion; its shares were traded at around $34.13 with a P/E ratio of 23.7 and P/S ratio of 0.7. The dividend yield of Telephone & Data System stocks is 1.3%.
Sold Out: Shanda Games Ltd. (GAME)
Mason Hawkins sold out his holdings in Shanda Games Ltd.. His sale prices were between $5.6 and $6.9, with an estimated average price of $6.22.
Shanda Games Limited is a holding company. The company through its subsidiaries engages in the development and operation of online games. Shanda Games Ltd. has a market cap of $1.76 billion; its shares were traded at around $6.11 with a P/E ratio of 9 and P/S ratio of 2.5.
Sold Out: Intercontinental Hotels Group Plc (IHG)
Mason Hawkins sold out his holdings in Intercontinental Hotels Group Plc. His sale prices were between $17.2 and $20.04, with an estimated average price of $18.89.
InterContinental Hotels Group offers information and reservations capability on the Internet for InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn hotels, Holiday Inn Express hotels, and Staybridge Suites by Holiday Inn hotels. Intercontinental Hotels Group Plc has a market cap of $6.68 billion; its shares were traded at around $23.1 with and P/S ratio of 4.3. The dividend yield of Intercontinental Hotels Group Plc stocks is 1.8%.
Added: Level 3 Communications Inc. (LVLT)
Mason Hawkins added to his holdings in Level 3 Communications Inc. by 12.09%. His purchase prices were between $0.94 and $1.29, with an estimated average price of $1.08. The impact to his portfolio due to this purchase was 0.32%. His holdings were 537,757,880 shares as of 12/31/2010.
Level 3 Communications is an international communications and information services company. Level 3 Communications Inc. has a market cap of $2.35 billion; its shares were traded at around $1.41 with and P/S ratio of 0.7.
Reduced: Yum Brands Inc. (YUM)
Mason Hawkins reduced to his holdings in Yum Brands Inc. by 8.51%. His sale prices were between $46.4 and $51.39, with an estimated average price of $49.41. The impact to his portfolio due to this sale was 0.62%. Mason Hawkins still held 30,231,270 shares as of 12/31/2010.
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 $24.08 billion; its shares were traded at around $51.38 with a P/E ratio of 20.3 and P/S ratio of 2.1. The dividend yield of Yum Brands Inc. stocks is 2%. 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.
Added: Dell Inc. (DELL)
Mason Hawkins added to his holdings in Dell Inc. by 20.1%. His purchase prices were between $13.15 and $14.49, with an estimated average price of $13.71. The impact to his portfolio due to this purchase was 1.77%. His holdings were 170,155,871 shares as of 12/31/2010.
Dell Inc. is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Dell Inc. has a market cap of $29.61 billion; its shares were traded at around $15.34 with a P/E ratio of 11.3 and P/S ratio of 0.6. Dell Inc. had an annual average earning growth of 4.1% over the past 10 years.
Added: Dillards Inc. (DDS)
Mason Hawkins added to his holdings in Dillards Inc. by 78.83%. The impact to his portfolio due to this purchase was 0.53%. His holdings were 6,664,270 shares as of 12/31/2010.
Dillard's Inc. is one of the nation's largest fashion apparel and home furnishings retailers. Dillards Inc. has a market cap of $2.65 billion; its shares were traded at around $42.63 with a P/E ratio of 21.6 and P/S ratio of 0.4. The dividend yield of Dillards Inc. stocks is 0.4%.
Added: Loews Corp. (L)
Mason Hawkins added to his holdings in Loews Corp. by 10.01%. His purchase prices were between $37.41 and $41.4, with an estimated average price of $39.24. The impact to his portfolio due to this purchase was 0.4%. His holdings were 23,856,347 shares as of 12/31/2010.
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 $18 billion; its shares were traded at around $43.24 with a P/E ratio of 14.1 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: Markel Corp. (MKL)
Mason Hawkins added to his holdings in Markel Corp. by 7.99%. His purchase prices were between $353 and $412, with an estimated average price of $377.85. The impact to his portfolio due to this purchase was 0.12%. His holdings were 863,349 shares as of 12/31/2010.
Markel Corporation markets and underwrites specialty insurance products andprograms to a variety of niche markets. Markel Corp. has a market cap of $4.09 billion; its shares were traded at around $420.75 with a P/E ratio of 16.2 and P/S ratio of 1.8.
Added: Chesapeake Energy Corp. (CHK)
Mason Hawkins added to his holdings in Chesapeake Energy Corp. by 0.86%. His purchase prices were between $21.12 and $30.51, with an estimated average price of $25.12. The impact to his portfolio due to this purchase was 0.09%. His holdings were 81,848,897 shares as of 12/31/2010.
Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp. has a market cap of $19.94 billion; its shares were traded at around $30.49 with a P/E ratio of 10 and P/S ratio of 2.6. The dividend yield of Chesapeake Energy Corp. stocks is 0.9%. Chesapeake Energy Corp. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Chesapeake Energy Corp. the business predictability rank of 2-star.
Added: Service Corp Intl. (SCI)
Mason Hawkins added to his holdings in Service Corp Intl. by 6.22%. His purchase prices were between $7.86 and $8.98, with an estimated average price of $8.32. The impact to his portfolio due to this purchase was 0.07%. His holdings were 31,828,484 shares as of 12/31/2010.
Service Corp. is the largest provider of funeral and cemetery services in the world. Service Corp Intl. has a market cap of $2.72 billion; its shares were traded at around $11.11 with a P/E ratio of 18.8 and P/S ratio of 1.2. The dividend yield of Service Corp Intl. stocks is 1.4%. Service Corp Intl. had an annual average earning growth of 4.1% over the past 10 years.
Added: Wendys International Inc. (WEN)
Mason Hawkins added to his holdings in Wendys International Inc. by 9.67%. His purchase prices were between $4.47 and $5.19, with an estimated average price of $4.73. The impact to his portfolio due to this purchase was 0.06%. His holdings were 29,705,000 shares as of 12/31/2010.
WENDY'S/ARBY'S GROUP, Inc. is the third largest quick-service restaurant company in the United States and is the franchisor of the Wendy's and Arby's restaurant systems. Wendys International Inc. has a market cap of $2.08 billion; its shares were traded at around $4.96 with a P/E ratio of 35.5 and P/S ratio of 0.6. The dividend yield of Wendys International Inc. stocks is 1.6%.
Added: Tw Telecom Inc. (TWTC)
Mason Hawkins added to his holdings in Tw Telecom Inc. by 1.26%. His purchase prices were between $16.23 and $18.02, with an estimated average price of $17. The impact to his portfolio due to this purchase was 0.03%. His holdings were 27,536,111 shares as of 12/31/2010.
TW TELECOM INC., headquartered in Littleton, Colo., provides managed network services, specializing in Ethernet and transport data networking, Internet access, local and long distance voice, VoIP, VPN and security, to enterprise organizations and communications services companies throughout the U. Tw Telecom Inc. has a market cap of $2.87 billion; its shares were traded at around $18.95 with a P/E ratio of 47.3 and P/S ratio of 2.3. Tw Telecom Inc. had an annual average earning growth of 7.3% over the past 10 years. GuruFocus rated Tw Telecom Inc. the business predictability rank of 2.5-star.
Added: Martin Marietta Materials (MLM)
Mason Hawkins added to his holdings in Martin Marietta Materials by 1.23%. His purchase prices were between $81.62 and $94.8, with an estimated average price of $87.53. The impact to his portfolio due to this purchase was 0.02%. His holdings were 4,478,670 shares as of 12/31/2010.
Martin Marietta Materials producer of aggregates for the construction industry, including highways, infrastructure, commercial and residential. Martin Marietta Materials has a market cap of $4.19 billion; its shares were traded at around $92.08 with a P/E ratio of 44 and P/S ratio of 2.3. The dividend yield of Martin Marietta Materials stocks is 1.8%. Martin Marietta Materials had an annual average earning growth of 7.7% over the past 10 years.
Added: Potlatch Corp. (PCH)
Mason Hawkins added to his holdings in Potlatch Corp. by 2.32%. His purchase prices were between $31.56 and $37.75, with an estimated average price of $33.5. The impact to his portfolio due to this purchase was 0.01%. His holdings were 2,727,094 shares as of 12/31/2010.
Potlatch Corp. is an integrated forest products company with substantial timber resources. Potlatch Corp. has a market cap of $1.56 billion; its shares were traded at around $39.09 with a P/E ratio of 36.9 and P/S ratio of 2.8. The dividend yield of Potlatch Corp. stocks is 5.2%.
Reduced: Directv (DTV)
Mason Hawkins reduced to his holdings in Directv by 10.43%. His sale prices were between $39.26 and $43.02, with an estimated average price of $41.33. The impact to his portfolio due to this sale was 1.13%. Mason Hawkins still held 50,816,036 shares as of 12/31/2010.
DIRECTV is a provider of digital multichannel television entertainment in the United States and Latin America. Directv has a market cap of $36.93 billion; its shares were traded at around $44.29 with a P/E ratio of 20 and P/S ratio of 1.7. Directv had an annual average earning growth of 33.4% over the past 10 years.
Reduced: Liberty Media Corp. Series A (LINTA)
Mason Hawkins reduced to his holdings in Liberty Media Corp. Series A by 2.11%. His sale prices were between $15.09 and $16.37, with an estimated average price of $15.82. The impact to his portfolio due to this sale was 0.1%. Mason Hawkins still held 61,585,872 shares as of 12/31/2010.
Liberty Media Corporation owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Liberty Media Corp. Series A has a market cap of $9.92 billion; its shares were traded at around $17.44 with a P/E ratio of 15.7 and P/S ratio of 1.2.
Reduced: Ruddick Corp. (RDK)
Mason Hawkins reduced to his holdings in Ruddick Corp. by 19.12%. His sale prices were between $33.58 and $38.4, with an estimated average price of $36.37. The impact to his portfolio due to this sale was 0.1%. Mason Hawkins still held 2,553,000 shares as of 12/31/2010.
RUDDICK CORP. is a diversified holding company which, through its subsidiaries, is in 4 primary businesses: Harris Teeter, Inc. Ruddick Corp. has a market cap of $1.8 billion; its shares were traded at around $36.7 with a P/E ratio of 15.3 and P/S ratio of 0.4. The dividend yield of Ruddick Corp. stocks is 1.4%. Ruddick Corp. had an annual average earning growth of 7.3% over the past 10 years. GuruFocus rated Ruddick Corp. the business predictability rank of 2-star.
Reduced: Fair Isaac Coporation (FICO)
Mason Hawkins reduced to his holdings in Fair Isaac Coporation by 7.95%. His sale prices were between $22.52 and $25.99, with an estimated average price of $23.96. The impact to his portfolio due to this sale was 0.08%. Mason Hawkins still held 8,612,544 shares as of 12/31/2010.
Fair Isaac Corporation makes decisions smarter. The company's solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Fair Isaac Coporation has a market cap of $1.12 billion; its shares were traded at around $28.12 with a P/E ratio of 18.9 and P/S ratio of 1.9. The dividend yield of Fair Isaac Coporation stocks is 0.3%. Fair Isaac Coporation had an annual average earning growth of 5.5% over the past 10 years.
Reduced: Aon Corp. (AON)
Mason Hawkins reduced to his holdings in Aon Corp. by 1.35%. His sale prices were between $40.12 and $48.16, with an estimated average price of $43.92. The impact to his portfolio due to this sale was 0.07%. Mason Hawkins still held 23,228,886 shares as of 12/31/2010.
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 Corp. has a market cap of $17.13 billion; its shares were traded at around $51.92 with a P/E ratio of 16.8 and P/S ratio of 2. The dividend yield of Aon Corp. stocks is 1.2%. Aon Corp. had an annual average earning growth of 2.7% over the past 10 years.
Reduced: Everest Re Group Ltd. (RE)
Mason Hawkins reduced to his holdings in Everest Re Group Ltd. by 1.37%. His sale prices were between $82.55 and $88.38, with an estimated average price of $84.81. The impact to his portfolio due to this sale was 0.03%. Mason Hawkins still held 5,394,848 shares as of 12/31/2010.
Everest Re Group, Ltd. is a world leader in property and casualty reinsurance and insurance, offering innovative products, responsive service and unsurpassed financial strength. Everest Re Group Ltd. has a market cap of $4.9 billion; its shares were traded at around $89.1 with a P/E ratio of 9.6 and P/S ratio of 1. The dividend yield of Everest Re Group Ltd. stocks is 2.2%.
Reduced: Campbell Soup Company (CPB)
Mason Hawkins reduced to his holdings in Campbell Soup Company by 0.61%. His sale prices were between $33.87 and $36.05, with an estimated average price of $34.58. The impact to his portfolio due to this sale was 0.02%. Mason Hawkins still held 18,821,605 shares as of 12/31/2010.
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 $11.65 billion; its shares were traded at around $34.94 with a P/E ratio of 14.5 and P/S ratio of 1.5. The dividend yield of Campbell Soup Company stocks is 3.4%. Campbell Soup Company had an annual average earning growth of 3% over the past 10 years.
Reduced: Willis Group Holdings Ltd. (WSH)
Mason Hawkins reduced to his holdings in Willis Group Holdings Ltd. by 0.29%. His sale prices were between $31.83 and $37.96, with an estimated average price of $34.43. The impact to his portfolio due to this sale was 0.01%. Mason Hawkins still held 15,012,255 shares as of 12/31/2010.
Willis Group is a global insurance broker providing specialized risk management, advisory, and other services to a broad range of corporate andinstitutional clients, with particular expertise in the construction, aerospace, marine and energy industries. Willis Group Holdings Ltd. has a market cap of $6.67 billion; its shares were traded at around $39.11 with a P/E ratio of 14.2 and P/S ratio of 2. The dividend yield of Willis Group Holdings Ltd. stocks is 2.7%. Willis Group Holdings Ltd. had an annual average earning growth of 8.3% over the past 10 years.
Also check out:
