Overview
- The Partners Fund returned -0.33% in Q3 2025 versus the S&P 500 at 8.12% and the Russell 1000 Value at 5.33%.
- The letter stresses real‑asset and brand holdings that generate rising free cash flow, with leadership targeting multiple expansion as margins improve and repurchases continue.
- Mattel was a detractor as Q3 net sales fell 6% to $1.74 billion, with North America down 16% after retailers shifted to domestic shipments that delayed sales recognition.
- Longleaf says Mattel is channeling most free cash flow into buybacks, planning about $340 million of repurchases in 2H25, and it expects 2026 sales to accelerate on two films and at least one digital game.
- The fund added to Albertsons on weakness, which was followed by solid results and a sizeable accelerated share repurchase after quarter end, while Regeneron recovered and remained an active repurchaser with net cash.