Longleaf Partners Fund, managed by Southeastern Asset Management, has published its investor letter for the fourth quarter of 2025. The fund reported a quarterly return of 3.35%. This compares to a 2.66% return for the S&P 500 and a 3.81% return for the Russell 1000 Value Index over the same period.
The firm described 2025 as a challenging year, stating it did not have any standout performers. Approximately 5% of its portfolio gained 20% or more, while 35% of the S&P 500 reached that level. The firm attributed its relative underperformance to the overall market dynamic.
In the letter, the fund highlighted its holding in PVH Corp. PVH Corp., an apparel company based in New York, saw its stock close at $64.63 per share on January 16, 2026, giving it a market capitalization of $3.11 billion. The stock's one-month return was -8.46%, and it lost 30.34% of its value over the last 52 weeks.
Longleaf Partners Fund provided specific commentary on PVH Corp. in the letter. "PVH Corp. was a detractor for the quarter and the year," the letter stated. "The company’s shares experienced considerable price fluctuations, while our appraisal stayed flattish, which was disappointing."
The fund noted that PVH is a company that will likely always have more quarterly earnings volatility than others. However, it stated that the long-run earnings per share power remains intact at over $10 per share. The letter mentioned that CEO Stefan Larsson has a strong record turning around multiple brands, but said the turnaround has taken longer than expected.
"This is a company that is sensitive to consumer trends, but its brands resonate with a more price conscious buyer," the fund wrote. "PVH has numerous levers to pull to improve margins above the 10% level that the market doubts." The letter also revealed that PVH was one of the fund's larger share repurchasers in 2025, and Longleaf believes this will continue at these prices in 2026.
According to a database cited in the original reporting, 31 hedge fund portfolios held PVH Corp. at the end of the third quarter, down from 33 in the previous quarter. The fund reiterates a focus on actions to strengthen portfolio outcomes rather than chasing winners at the wrong time. It maintains that building a portfolio of real companies during a period of excessive speculation will benefit all markets.