Overview
- Longleaf published its Q2 2026 investor letter on Monday, July 13, 2026, reporting the Partners Fund returned 3.87% for the quarter and materially lagged the S&P 500 and the Russell 1000 Value Index.
- The firm attributes the shortfall mainly to an intentional underweight in Information Technology and to holding median, unweighted multiples while the market rewarded high‑multiple, growth‑oriented names.
- Longleaf reiterated its investment discipline of prioritizing free cash flow per share and potential for multiple expansion rather than chasing near‑term momentum.
- Several portfolio events are now core to the outlook: Fortune Brands hired Jesse Singh as CEO and opened a strategic review of its Fiberon unit, People Inc. bid for control of MGM while MGM’s Las Vegas revenue showed early recovery driven by conventions, and Magnum reported stronger May results with reports of private‑equity interest.
- Albertsons was a quarterly detractor with comparable‑store sales below expectations and Longleaf said Kroger’s post‑quarter acquisition of Giant Eagle reinforced its appraisal of Albertsons and the competitive pressure on supermarket margins.