Lumen (LUMN, Financial) (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the "Game Stop / Reddit" short cover phenomenon. After this short-term bounce, Lumen's stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year's worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen's board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen's hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.
Mason Hawkins (Trades, Portfolio)' Longleaf Partners Fund first-quarter 2021 commentary.
