Overview
- Longleaf Partners, which published its Q1 investor letter Monday, reported a -4.46% return versus the S&P 500’s -4.33% and the Russell 1000 Value Index’s 2.10% gain.
- The fund ended the quarter with a price-to-value in the mid-50s percent, a gauge the managers use to show how far portfolio prices sit below their estimates of fair value.
- The letter cites unusual sector swings tied to perceived AI winners, fallout from the Iran War, and rising private credit risks as key forces shaping results early in 2026.
- Rayonier became the fund’s largest position after its merger with PotlatchDeltic, with timberland described as a long-term store of value and an inflation hedge and with plans for targeted asset sales and buybacks.
- CNH contributed after better-than-expected Q4 2025 results and a conservative 2026 guide, and management restarted talks to monetize or sell its sub-scale construction unit, while Avantor detracted after a lower 2026 outlook with new COO Mary Blenn tasked with fixing production issues.