Longleaf Partners, managed by Southeastern Asset Management, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund returned 3.35% in the quarter, compared to the S&P 500’s 2.66% and the Russell 1000 Value Index’s 3.81% return. 2025 was a challenging year for the firm, as it did not have any standout performers. Approximately 5% of the portfolio gained 20% or more, while 35% of the S&P 500 hit that level. The overall market dynamic drove the Fund’s underperformance. The firm focuses on actions to strengthen portfolio outcomes rather than chasing winners at the wrong time. The firm reiterates that building a portfolio of real companies on offense in a period of excessive speculation will benefit all markets. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as IAC Inc. (NASDAQ:IAC). IAC Inc. (NASDAQ:IAC) is a leading media and internet company. The one-month return of IAC Inc. (NASDAQ:IAC) was -3.167%, and its shares gained 13.37% of their value over the last 52 weeks. On January 16, 2026, IAC Inc. (NASDAQ:IAC) stock closed at $39.51 per share, with a market capitalization of $3.167 billion.
Longleaf Partners Fund stated the following regarding IAC Inc. (NASDAQ:IAC) in its fourth quarter 2025 investor letter:
“IAC Inc. (NASDAQ:IAC), MGM Resorts and Angi – The related group of IAC, MGM Resorts and Angi contributed strongly in aggregate this year. Digital holding company IAC has signaled its plans to dispose of all assets besides People Inc. and an approximate 25% stake in MGM. Chairman Barry Diller is focused on closing the valuation disconnect as no value has been ascribed by the markets to IAC’s assets beyond MGM for too long. Share repurchase and increasing the stake in MGM are the main capital allocation options, and the company is already acting on both. One specific simplification move IAC made this year was the spinoff of Angi, the home services marketplace. We purchased more Angi shares post-spin at a depressed price and then sold our position as evidence of their multi-year turnaround heading down the right path caused the stock to reach our appraisal. Casino operator MGM Resorts had a relatively weaker 2025 in Las Vegas due to difficult comparisons after multiple years of strength. A significant turnaround at BetMGM plus strong performances at non-Las Vegas “regional” properties and Macau helped steady the consolidated business throughout the year. The general market narrative for most of the year has been that Las Vegas has peaked for various reasons. We, and IAC, believe Vegas cannot be replicated anywhere in the world, and MGM has a great position as the market leader. Management has corrected some pricing mistakes while making moves to narrow their focus. A recent sale of one of their lower quality properties for a higher multiple than where the consolidated business trades, as well as withdrawing their New York City casino bid, freed up more capital for a management team who has repurchased over 40% of their shares at extremely attractive prices over the past five years.”
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