Investing in a Changing Global Landscape
The Longleaf Partners Global Fund has recently reported its third-quarter results, revealing a return of 14.76%. This surpasses the FTSE Developed and FTSE Developed Value indices, which returned 6.35% and 8.81%, respectively. The fund’s strong performance can be attributed to its carefully curated portfolio, with over half of its holdings delivering double-digit returns.
A Focus on Intrinsic Value
The fund’s management team emphasizes the importance of intrinsic value when selecting stocks. By comparing the prices of stocks to their appraised intrinsic values, the team aims to identify undervalued companies with potential for long-term growth. This approach is reflected in the fund’s price-to-value ratio, which remains in the high-60s%.
Key Holdings and Contributors
Several key holdings contributed to the fund’s strong performance, including:
- Delivery Hero: A German-listed food delivery business that reported strong Q2 results and reaffirmed its full-year guidance.
- Kellanova: A packaged food company being purchased by Mars at a slight premium to the fund’s appraisal.
- CNX Resources: A natural gas company that delivered solid operations and continued growth in value per share.
- Eurofins: The global leader in laboratory testing services, which reported strong organic growth and margin improvement.
- Prosus: A global consumer internet group that continues to deliver strong results, particularly in gaming and advertising.
Challenges and Opportunities
While the fund’s performance has been strong, there are challenges on the horizon. The global economy is facing uncertainty, and the fund’s management team is cautious about the potential impact on its holdings. However, the team also sees opportunities for growth, particularly in defensive industries.
Conclusion
The Longleaf Partners Global Fund’s third-quarter results demonstrate the importance of careful stock selection and a focus on intrinsic value. By identifying undervalued companies with potential for long-term growth, the fund’s management team aims to deliver strong returns for its investors. Despite the challenges ahead, the team remains confident in its approach and is well-positioned to navigate the changing global landscape.
Important Disclosures
Before investing in any Longleaf Partners Fund, it is essential to carefully consider the fund’s investment objectives, risks, charges, and expenses. The fund’s prospectus and summary prospectus contain this and other important information. Please read these documents carefully before investing.
Risks
The Longleaf Partners Global Fund is subject to various risks, including stock market risk, non-US economic and political developments, exposure to non-US currencies, and different accounting and financial standards. These risks may be higher when investing in emerging markets.
Indexes
The FTSE Developed Index and FTSE Developed Value Index are unmanaged and
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