Mason Hawkins

Mason Hawkins

Last Update: 11-16-2017

Number of Stocks: 28
Number of New Stocks: 2

Total Value: $8,317 Mil
Q/Q Turnover: 5%

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 (%)
201620.7211.968.8
2015-18.81.38-20.2
20144.9213.69-8.8
3-Year Cumulative2.8 (0.9%/year)29 (8.9%/year)-26.2 (-8%/year)
201332.1232.39-0.3
201216.53160.5
5-Year Cumulative58.3 (9.6%/year)98.2 (14.7%/year)-39.9 (-5.1%/year)
2011-2.852.11-5.0
201017.8915.062.8
200953.626.4627.1
2008-50.6-37-13.6
2007-0.45.49-5.9
10-Year Cumulative37.1 (3.2%/year)95.7 (6.9%/year)-58.6 (-3.7%/year)
200621.615.795.8
20053.64.91-1.3
20047.110.88-3.8
200334.828.686.1
2002-8.3-22.113.8
15-Year Cumulative128.6 (5.7%/year)164.2 (6.7%/year)-35.6 (-1%/year)
200110.3-11.8922.2
200020.6-9.129.7
19992.221.04-18.8
199814.328.58-14.3
199728.333.36-5.1
20-Year Cumulative355.7 (7.9%/year)339.2 (7.7%/year)16.5 (0.2%/year)
19962122.96-2.0
199527.537.58-10.1
199491.327.7
199322.210.0812.1
199220.57.6212.9
25-Year Cumulative1028.4 (10.2%/year)791.8 (9.1%/year)236.6 (1.1%/year)
199139.230.478.7
1990-16.4-3.1-13.3
198923.331.69-8.4
198835.216.6118.6

Top Ranked Articles

Fairholme, Longleaf Overcome Painful Year to Lead Best Funds of 2016 Berkowitz and Hawkins land in top 10 and currently like cash
The peaks and valleys that define the chart of the Fairholme Fund (Trades, Portfolio)’s performance jutted to a new summit in 2016, proclaiming to investors that a mere $10 laid in the hands of Bruce Berkowitz (Trades, Portfolio) in 2000 would be worth $62.21 today. Far below, at base camp, investors entrusting the same amount to the comparatively plodding and oxygen-starved S&P 500, after clocking another year in its hike, get $20.84 back. Read more...
With Oil Prices Cratering, Value Gurus Bet the Most on These Energy Stocks Pricing recovery remains ambiguous
Mason Hawkins (Trades, Portfolio) sold Chesapeake Energy (NYSE:CHK) and Prem Watsa (Trades, Portfolio) reduced Exco Resources (NYSE:XCO) in the last week, stocks crushed by oil prices that continue to languish at their lowest prices since spring of 2016. For investors hanging on for something to change in energy, certain stocks hold more attraction than others. Read more...
Longleaf Partners Comments on CNH Industrial Guru stock highlight
CNH Industrial (NYSE:CNHI) (+11%; +0.61%), the maker of agricultural equipment, commercial vehicles and construction equipment, was another contributor in the quarter. The company once again reported higher pricing in the core agricultural equipment segment at a time of down units. We applaud CEO Rich Tobin for good cost controls, as margins came in better than we expected. There are early signs that the agricultural market is stabilizing after years of decline. When demand for equipment turns, the company’s strong incremental margins will be working in our favor. We believe that management and the board are open to further rationalizing the company’s assets, as our vested partners, large owner John Elkann and Chairman Sergio Marchionne, have done at other investments in the past. Read more...
Longleaf Partners Comments on Chesapeake Energy Guru stock highlight
Chesapeake Energy (NYSE:CHK) (-15%; -0.70%), one of the largest U.S. producers of natural gas, oil, and natural gas liquids, was the largest detractor in the quarter. At the macro level, declines in oil and gas prices pressured the stock. We use the futures strip for both commodities in our appraisal of Chesapeake, even though they are currently trading below the global energy industry’s long run marginal costs. CEO Doug Lawler further improved the company’s financial strength and flexibility, closing two Haynesville deals and reporting another solid operational quarter. We believe he and his team will continue to execute additional asset sales and maintain both operating and capital expense discipline. Read more...
Longleaf Partners Comments on DuPont Guru stock highlight
In addition to selling Ralph Lauren, we also exited DuPont (NYSE:DFT) in the quarter. We earned a 60% gain in DuPont when price reached our appraisal. We bought the stock in August 2015 when questions surrounded both the business quality and management, but we believed the board, which was under shareholder pressure, would address the company’s leadership, cost structure, and capital allocation to help the conglomerate focus on its more dominant, growing segments. The businesses performed solidly, and the arrival of CEO Ed Breen with his cost cutting plans and smart merger with Dow turned the investment into a success. We will continue to watch the company and its spinoffs going forward. Read more...
» More Mason Hawkins Articles

Commentaries and Stories

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Longleaf Partners Comments on EXOR Guru stock highlight
Other examples of multi-industry complexity and change in focus include EXOR2,4 and Graham Holdings3. Ten years ago, many viewed EXOR (MIL:XO) as a way to own Fiat, a car company with limited models and distribution. But Chairman and CEO John Elkann and Vice Chairman Sergio Marchionne successfully split Fiat into its better recognized parts of Ferrari, Fiat Chrysler Automobiles, and CNH Industrial. Last year, the purchase of PartnerRe made it the largest part of EXOR’s value, thereby requiring reinsurance industry knowledge to properly analyze the company. Our generalist team could quickly incorporate the value of this significant acquisition into our EXOR case given the analysts’ coverage of previous reinsurance investments such as Everest Re, Odyssey RE within Fairfax, and Berkshire Reinsurance within Berkshire Hathaway. To appraise Graham Holdings, formerly The Washington Post, knowledge of the newspaper and cable industries (the two largest parts that the company sold and spun out, respectively) is of limited help in determining the value for the remaining More...

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Southeastern Asset Management Says Watsa's Fairfax Was 'Deeply Discounted' Earlier in Year Stock remains down 5% for the year Prem Watsa, Mason Hawkins - Southeastern Asset Management Says Watsa's Fairfax Was 'Deeply Discounted' Earlier In Year
In a letter released Friday, Mason Hawkin’s Southeastern Asset Management said it believed Prem Watsa (Trades, Portfolio)’s Canadian insurer Fairfax Financial (TSX:FFH) was “deeply discounted” as the price tumbled earlier in the year. More...

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Longleaf Partners 3rd Quarter Shareholder Letter Discussion of markets and investments Mason Hawkins - Longleaf Partners 3rd Quarter Shareholder Letter
In the third quarter, we compounded our shareholders’ capital across all four Longleaf Partners Funds. Performance gains, however, were somewhat muted by the larger-than-normal cash held across the Funds. Markets outside of the U.S. led year-to-date returns throughout 2017, but U.S. small cap stocks beat both U.S. large cap and non-U.S. markets in the third quarter following the September small cap rally associated with prospective corporate tax cuts. Longleaf International Fund outperformed EAFE. In the Longleaf Partners, Longleaf Partners Small-Cap, and Longleaf Partners Global Funds, which underperformed their relevant indices, our largest holding, Level 3 Communications (NYSE:LVLT),1,2,3 was the primary source followed by the cash headwind. LVLT will become a more normal weight when CenturyLink (NYSE:CTL) closes its purchase of LVLT, paying cash for approximately half of the acquisition. In the quarter, LVLT’s price reflected concerns about final deal approvals and a potential CTL dividend cut post-deal. We anticipate that the deal will close, the prospective cash flow will easily cover the dividend, and the new CTL will be the preeminent global fiber network solutions company with More...

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Can Mason Hawkins Get Back to Beating the Benchmark? Legendary investor had serious losses in 2008 and 2015, but the last year and a half may signal better times ahead Mason Hawkins - Can Mason Hawkins Get Back To Beating The Benchmark?
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GURUS, MASON HAWKINS, LONGLEAF FUNDS, SOUTHEASTERN ASSET MANAGEMENT, VALUE INVESTING, MUTUAL FUNDS, INTERNATIONAL, GLOBAL, LONG-TERM CAPITAL GROWTH, CONVICTION PORTFOLIO, FUNDAMENTAL RESEARCH, LONG TI


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Longleaf Partners Comments on STADA Arzneimittel Guru stock highlight
We exited STADA Arzneimittel (XTER:SAZ), the German maker of numerous over-the-counter medicine brands as well as generic drugs. Price reached our appraisal when the Board of Directors recommended a purchase offer from a private equity consortium. This investment is a good example of the difference that good partners make. For 20 years STADA was a serial underperformer with entrenched management poorly allocating capital and running the company as a personal fiefdom. We followed the company and liked its strong brands and discounted price but could not get comfortable with the people. In 2016, a German activist group got involved and changed management and most of the board. We started our position in November of 2016; private equity obviously was seeing the same opportunity. The company’s new board and executives oversaw a disciplined, rational process that resulted in a good sale price and a nearly 50% gain for the Fund in less than 6 months. We also sold our stake in Genting Singapore, the casino company with a duopoly in Singapore and controlled by Genting Berhad. The stock reached our appraisal as the company reported a strong quarter. Hold-adjusted earnings before interest, More...

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Longleaf Partners Comments on Fairfax Financial Guru stock highlight
We bought one new company which is undisclosed as we hope to build a more meaningful stake. We increased the Fund’s position in Fairfax Financial (TSX:FFH), a Canadian based insurance and reinsurance operator that we began buying in the first quarter. The Fund previously owned the company for over a decade with a successful outcome. CEO and Founder Prem Watsa (Trades, Portfolio) has continued to increase Fairfax’s value since we sold the stock in 2012. Fairfax is underwriting more successfully than when we previously owned it, is about to complete a value-accretive merger with Allied World, and still has the investing prowess of Watsa and his team. Because the merger is on the come and Watsa is holding a large amount of cash that is not producing significant income, near-term reported earnings per share are well below the company’s long run earnings power. We are excited to partner with Watsa at Fairfax again. From More...

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Longleaf Partners Comments on OCI Guru stock highlight
OCI (XAMS:OCI) (+14%; +0.83%), the global nitrogen fertilizer and methanol producer, contributed positively to results in the quarter. Improved prices and volumes for related commodities led to greatly increased cash flow year-over-year. The company’s Iowa fertilizer plant began operating in April, which showed the market that this formerly non-earning asset is now about to produce significant earnings. OCI also made progress bringing its new methanol plant (“Natgasoline”) closer to its fourth quarter completion date. Late in the quarter, OCI’s stock price responded positively to rumors of private equity interest in the company. We are confident that our proven, aligned partner, Chairman Nassef Sawiris, will navigate any strategic outcome in a way that maximizes shareholder value. More...

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Longleaf Partners Comments on Cheung Kong Property Guru stock highlight
Cheung Kong Property (HKSE:01113) (+19%, +0.87%), the Hong Kong and China real estate company, was another notable contributor. The company achieved strong volumes of residential property sales in both countries. In the first half of 2017, Cheung Kong Property was the largest seller of residential property in Hong Kong. Additionally, the value of Cheung Kong Property’s commercial Hong Kong properties was highlighted with the sale by the government of the comparable Murray Road property across from Cheung Kong Property’s Hutchison House. The transaction fetched a land premium that implied a price of HK$50k per square foot (psf) on a gross floor area (GFA) basis and a cap rate of less than 3%. Our appraisal of Hutchison House is around HK$16k psf, which reflects the 5% cap rate we use to appraise Cheung Kong Property’s office properties in Central, Hong Kong. Cheung Kong Property will begin redevelopment of Hutchison House which will allow the company to substantially increase the plot ratio from the current 22 story building to 38 floors. Managing Director Victor Li built value on two fronts by selling residential properties More...

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Longleaf Partners Comments on Yum China Guru stock highlight
Yum China (NYSE:YUMC) (+45%, +2.17%), the operator of KFC and Pizza Hut restaurants in China, also helped drive Fund performance. The company reported its first full quarter as a newly spun off independent company, and significantly exceeded expectations for operating margins. In addition to helping current results, this margin strength has ramifications for the future value of stores to be developed. Both the reported results and YUM China’s acquisition of online food delivery service Daojia, helped investors begin to realize that the enormous amount of meal delivery in China could end up being an additive weapon instead of a competitive threat for the company’s store base. With the stock’s significant gains, we reduced YUM China’s portfolio weight, but we believe management will continue to drive attractive value growth. More...

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Longleaf Partners Comments on Melco International Guru stock highlight
Melco International (HKSE:00200) (+52%; +2.83%), the Asian casino and resort holding company, was a primary contributor to performance as investors were encouraged by the accelerating recovery pace of industry gross gaming revenue (GGR) in Macau. GGR rose 17% in the first six months with May up 24% and June up 26%. Melco International’s substantial holding company discount to the market value of its 51% stake in Melco Resorts, which operates the casinos, shrank considerably this year, as Melco International consolidated its control over Melco Resorts. The consolidation is an example of the solid stewardship of our partner, CEO Lawrence Ho. Although the stock price remains discounted, we trimmed our stake to maintain a more normal portfolio weight. More...

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Longleaf Partners' Q2 International Fund Commentary Overview of holdings and outlook Mason Hawkins - Longleaf Partners' Q2 International Fund Commentary
Longleaf Partners International Fund returned 8.42% for the quarter, outperforming the MSCI EAFE Index’s 6.12% gain and meaningfully exceeding our annualized absolute goal of inflation plus 10%. The Fund’s year-to-date (YTD) results were a substantial 17.96% versus 13.81% for the index. Continued strength in our Asian holdings drove much of the Fund’s outperformance, as did the fact that most of the stocks in the portfolio posted gains, and there were no material detractors. The Fund’s large absolute and relative results were driven by very different factors than the index and came in spite of higher-than-normal cash level — a reminder that successful stock selection in a concentrated portfolio with high Active Share can be a winning formula. More...

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Longleaf Partners Comments on SEACOR Holdings Guru stock highlight
During the quarter, SEACOR Holdings (NYSE:CKH), the provider of marine transportation services, split into two companies – SEACOR Holdings and SEACOR Marine Holdings. We sold SEACOR Holdings, since it traded at our value post-spin. We still held SEACOR Marine Holdings at quarter end, since it traded at a large discount to our value. Our relatively short SEACOR history thus far illustrates the importance of the margin of safety. In spite of reducing our appraisal after being wrong on how much lower oil and agriculture prices would impact operations, we have avoided a loss because of the deep discount we initially paid. SEACOR also highlights another improvement in our process over the last five years — we now have much higher hurdles to clear before adding to a position if the value is declining, even if the discount looks compelling. SEACOR remained a small holding over the last year because we did not add to it as the case and our appraisal changed. More...

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Longleaf Partners Comments on CONSOL Energy Guru stock highlight
CONSOL Energy (NYSE:CNX) (-11%; -0.55%), the Appalachian natural gas and coal company, was a detractor in the quarter. The operating items within the company’s control – production, costs, and smaller asset sales – were generally positive. More...

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Longleaf Partners Comments on Level 3 Communications Guru stock highlight
Level 3 Communications (NYSE:LVLT) (+14%, +0.29%), the multinational telecommunications and Internet service provider, did not have a significant impact on the Fund’s performance but made a major announcement during the quarter. CEO Jeff Storey was named the successor to CEO Glen Post at CenturyLink, whose acquisition of Level 3 should close in a few months. With this announcement, we are thrilled that Storey’s stellar team, who created 182% in shareholder return since he took over in 2013, will be running operations at the new CenturyLink - a powerful combination of Level 3 with CenturyLink’s fiber network, most of which came through its 2011 acquisition of Qwest. Level 3 is the Fund’s largest position but will become a normal weight after the merger because at the current CenturyLink price, around 45% of the deal will be paid in cash. More...

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Longleaf Partners Comments on OCI Guru stock highlight
OCI (XAMS:OCI) (+14%; +0.75%), the global nitrogen fertilizer and methanol producer, contributed positively to results in the quarter. Improved prices and volumes for related commodities led to greatly increased cash flow year-over-year. The company’s Iowa fertilizer plant began operating in April, which showed the market that this formerly non-earning asset is now about to produce significant earnings. OCI also made progress bringing its new methanol plant (“Natgasoline”) closer to its fourth quarter completion date. Late in the quarter, OCI’s stock price responded positively to rumors of private equity interest in the company. We are confident that our proven, aligned partner, Chairman Nassef Sawiris, will navigate any strategic outcome in a way that maximizes shareholder value. More...

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Longleaf Partners Comments on Wynn Resorts Guru stock highlight
Wynn Resorts (NASDAQ:WYNN) (+17%, +1.03%), the luxury gaming and hotel operator with prime properties in Las Vegas, Macau, and Boston, was the largest contributor this quarter, as it was in the first quarter. As Macau’s rebound accelerated, Wynn’s Palace property continued to ramp up strongly without cannibalizing the company’s legacy Peninsula property nearly as much as the market previously feared. Wynn reported a solid quarter in Las Vegas and announced that phase one of its golf course redevelopment will be a much more prudent project than some had anticipated, once again illustrating the great partner CEO Steve Wynn has been since we invested. Construction is on track for the Boston property to open in 2019. Our appraisal grew in the quarter, but we trimmed the stock to a more normal weight as the gap between price and value narrowed. More...

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Longleaf Partners' Small-Cap Fund Commentary for 2nd Quarter 2017 Review of markets and holdings Mason Hawkins - Longleaf Partners' Small-Cap Fund Commentary For 2nd Quarter 2017
Longleaf Partners Small-Cap Fund gained 0.98% in the second quarter. While a positive return, it trailed both our absolute return goal of inflation plus 10% and the Russell 2000 Index’s 2.46%. These results caused the Fund’s year-to-date (YTD) performance to fall barely below the index at 4.95% versus 4.99%. Most holdings grew their value, some that the market realized and some it did not. More...

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Longleaf Partners Comments on Chesapeake Energy Guru stock highlight
Chesapeake Energy (NYSE:CHK) (-16%, -0.63%), one of the largest U.S. producers of natural gas, oil, and natural gas liquids, was a detractor. Weak commodity prices impacted the oil and gas group overall, but what was most striking about Chesapeake was the stock price’s extremely high correlation to oil prices instead of natural gas prices this quarter. Although Chesapeake’s production is primarily weighted to gas, a meaningful percentage of the company’s current earnings before interest, taxes, depreciation and amortization (EBITDA) comes from oil. Additionally, oil’s importance to Chesapeake going forward has increased with much of current drilling focused on oil, especially in the Powder River Basin and Eagle Ford Shale. CEO Doug Lawler and his team will make prudent asset sales when the price and time are right, as they have done in the past, but the lack of such reported sales this quarter also weighed on the stock price. More...

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Longleaf Partners Comments on CONSOL Energy Guru stock highlight
CONSOL Energy (NYSE:CNX) (-11%, -0.64%), the Appalachian natural gas and coal company, was a detractor in the quarter. The operating items within the company’s control – production, costs, and smaller asset sales – were generally positive. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Longleaf Partners Comments on Level 3 Communications Guru stock highlight
Level 3 Communications (NYSE:LVLT) (+4%, +0.37%), the multinational telecommunications and Internet service provider, did not have a significant impact on the Fund’s performance but made a major announcement during the quarter. CEO Jeff Storey was named the successor to CEO Glen Post at CenturyLink, whose acquisition of Level 3 should close in a few months. With this announcement, we are thrilled that Storey’s stellar team, who created 182% in shareholder return since he took over in 2013, will be running operations at the new CenturyLink — a powerful combination of Level 3 with CenturyLink’s fiber network, most of which came through its 2011 acquisition of Qwest. Level 3 is the Fund’s largest position but will become a normal weight after the merger because at the current CenturyLink price, around 45% of the deal will be paid in cash. More...

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