In this article, we discuss the 15 long term stock picks of billionaire Mason Hawkins.
Mason Hawkins is a prominent figure in the world of value investing, best known as the founder and chairman of Southeastern Asset Management, an investment firm established in 1975. The firm began with a modest pool of assets but grew to manage approximately $20 billion within a few years. With decades of experience and a reputation for disciplined investment strategies, Hawkins has earned widespread respect among investors and financial professionals for his long-term approach to wealth creation. His firm specializes in managing concentrated portfolios based on in-depth research, fundamental analysis, and a value-oriented philosophy. Hawkins believes that patience and a contrarian mindset are critical to success, often holding onto investments for years to allow their true value to emerge.
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This strategy has been central to the success of the flagship Longleaf Partners Funds run by Southeastern Asset Management. For example, during the 20 years leading up to the mid-2000s, the fund achieved an annualized return of approximately 12%, compared to around 10% for the S&P 500. A native of Tennessee, Hawkins graduated from the University of Florida with a degree in Finance and later earned his MBA from the University of Georgia. His early career included roles at Atlantic National Bank and First Tennessee Investment Management before he decided to establish Southeastern Asset Management. Under his leadership, the firm grew from managing a small pool of assets to overseeing billions of dollars across various funds.
One hallmark of the investment style made popular by Hawkins is his emphasis on what he calls a “margin of safety.” This concept, pioneered by Benjamin Graham, involves purchasing stocks at a significant discount to their estimated intrinsic value. By doing so, Hawkins aims to minimize downside risk while maximizing potential returns. This disciplined approach has helped Southeastern Asset Management weather multiple market cycles, including challenging periods like the dot-com bubble and the 2008 financial crisis. Hawkins focuses on quality rather than quantity, reflected in the 13F portfolio of his fund that typically holds positions in twenty to thirty stocks, highlighting a preference for concentration rather than diversification. This approach allows the firm to take significant positions in companies it believes in, leading to outsized returns when these investments succeed.
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For this article, we selected stocks by combing through the 13F portfolio of Southeastern Asset Management at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Mason Hawkins of Southeastern Asset Management
Billionaire Mason Hawkins’ Top 15 Long-Term Stock Picks
15. Madison Square Garden Sports Corp. (NYSE:MSGS)
Number of Hedge Fund Holders: 40
Madison Square Garden Sports Corp. (NYSE:MSGS) is a professional sports firm. As of the conclusion of the third quarter of 2024, Southeastern Asset Management’s holdings in the company amounted to 4,028 shares, valued at over $838,000 and constituting 0.03% of its 13F portfolio. The following factors make Madison Square Garden Sports Corp an appealing investment prospect. The company reported revenue of a total of more than $1 billion in fiscal year 2024, marking a 16% increase from the last year. The company’s success is driven by suite revenues, playoff-related revenues, and league distributions. Moreover, it has signed a new multi-year sponsorship deal with Lenovo and its subsidiary Motorola Mobility, and signed multi-year sponsorship renewals with Verizon and Benjamin Moore.
14. XPO, Inc. (NYSE:XPO)
Number of Hedge Fund Holders: 48
XPO, Inc. (NYSE:XPO) provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. By the end of the third quarter in 2024, the hedge fund reported owning 15,980 shares in XPO, Inc. (NYSE:XPO), worth upwards of $1.7 million, accounting for 0.08% of its 13F portfolio. Soaring revenues, new projects like multimodal transport corridors, and strengthened operating income make the stock a promising investment opportunity. The increase in revenue is due primarily to higher yield and tonnage per day in the North American segment. The European operations of the firm have received a major boost with the launching of a new multimodal transport corridor between Antwerp, Belgium, and Istanbul.
13. Cardinal Health, Inc. (NYSE:CAH)
Number of Hedge Fund Holders: 40
Cardinal Health, Inc. (NYSE:CAH) is an Ohio-based healthcare services company. At the close of the third quarter of 2024, Southeastern Asset Management’s investment in the company stood at 17.581 shares, with a total value exceeding $1.9 million, representing 0.09% of its disclosed portfolio. The firm has robust revenue growth, strong share repurchase programs, and long-term strategic alliances serving as a base for future growth prospects. The firm recently acquired a majority stake in GI Alliance for approximately $2.8 billion, which diversifies the company’s services and enhances its presence in the gastroenterology sector. Cardinal Health plans to repurchase up to $750 million of its shares in fiscal year 2025, which shows the company’s commitment to returning value to shareholders.
12. Anywhere Real Estate Inc. (NYSE:HOUS)
Number of Hedge Fund Holders: 26
Anywhere Real Estate Inc. (NYSE:HOUS) provides residential real estate services in the United States and internationally. At the end of the third quarter of 2024, the hedge fund held 3.4 million shares of Anywhere Real Estate Inc. (NYSE:HOUS), valued at more than $17.7 million and making up 0.83% of its 13F holdings. There are many factors, including sound revenue generation, transaction volume growth, and the launch of significant new projects that make the stock a great option for real estate investors. As per the report of the third quarter of 2024, the company reported a revenue of $1.5 billion, with the strength in luxury brands outperforming the market, with 5% transaction volume growth in the period, demonstrating a positive trend in business activity. The firm has also launched the Move Up campaign, aiming to elevate the relevance of the brand and connect with potential consumers with ease.
11. Empire State Realty Trust, Inc. (NYSE:ESRT)
Number of Hedge Fund Holders: 17
Empire State Realty Trust, Inc. (NYSE:ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. Southeastern Asset Management’s Q3 2023 filing revealed ownership of 1.8 million shares in the company, valued at over $20.7 million and comprising 0.98% of its 13F portfolio. Strong revenue growth, core funds from operations, and strategic leasing activity are the notable factors that make the stock a compelling investment opportunity in the real estate sector. While the earnings demonstrate solid operational performance and effective cost management, the company has signed important leases, such as an 11-year, 24,503 square foot agreement with Dynadmic Corporation at 1350 Broadway and an 11-year, 24,209 square foot lease with Bloomsbury Publishing at 1359 Broadway in the past few months.
10. Oscar Health, Inc. (NYSE:OSCR)
Number of Hedge Fund Holders: 45
Oscar Health, Inc. (NYSE:OSCR) is a health insurance provider. The hedge fund’s Q3 2024 filing revealed ownership of 2 million shares in Oscar Health, Inc. (NYSE:OSCR), valued at over $43 million and comprising 2.05% of its 13F portfolio. Promising financial performance records, technological innovation, and strategic market expansion are some of the stand-away features that make the firm a great platform to invest in. For instance, as per the third quarter report of 2024, the total revenue reported was $2.4 billion, a 68% increase year-over-year, driven by high membership and rate increases. Moreover, an improved medical loss ratio is another factor making Oscar Health worth investing in, as the company achieved an MLR of 84.6% in the third quarter of 2024. This highlights an improvement of 80 basis points as compared to 2023, which demonstrates the company’s efficiency in managing the costs of healthcare. Moreover, projects like +Oscar, a tech-driven platform that extends its proprietary technology stack to third-party payers and providers, show the firm is keeping pace with tech innovations.
9. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
Number of Hedge Fund Holders: 25
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) develops, owns, and operates casino gaming and resort facilities in Asia and Europe. As per the third-quarter report for 2024, Southeastern Asset Management owned 6 million shares in the company, worth an estimated $46.8 million and making up 2.2% of its 13F portfolio. The firm is an investor favorite due to operations in strategic places, strong operating revenues, and noteworthy sustainability initiatives. For instance, the total operating revenue for the quarter of 2024 was $1.18 billion, representing an increase of approximately 16% from $1.02 billion for the comparable period in 2023. This particular rise highlighted the improved performance in gaming and non-gaming operations in Macau. To appease activist investors, five integrated resorts owned by the firm in Macau, the Philippines, and Cyprus intend to achieve total carbon neutrality and zero waste across all their properties by 2030.
8. Graham Holdings Company (NYSE:GHC)
Number of Hedge Fund Holders: 21
Graham Holdings Company (NYSE:GHC) operates as a diversified education and media company in the United States and internationally. At the end of the third quarter, 2024, the hedge fund’s stake in Graham Holdings Company (NYSE:GHC) was 72,806 shares, valued above $59.8 million and representing 2.82% of its 13F portfolio. There are multiple factors, such as commitment to a diversified portfolio, significant earnings growth, and consistent dividend payouts, which make this company a great place for investment. As per the third quarter financial report of 2024, total revenue was $1.2 billion, up 9% from $1.1 billion in the third quarter of 2023, driven by increased revenues in education, television broadcasting, healthcare and automotive segments. Moreover, the company also authorized the repurchase of up to 500,000 additional shares, which highlights dedication to returning capital to shareholders.
7. Hyatt Hotels Corporation (NYSE:H)
Number of Hedge Fund Holders: 22
Hyatt Hotels Corporation (NYSE:H) operates as a hospitality company in the United States and internationally. By Q3 2024’s close, Southeastern Asset Management’s holdings included 401,442 shares in the company, with a value exceeding $61 million, accounting for 2.88% of its reported portfolio. It is a great opportunity for investors as Hyatt Hotels has demonstrated robust financial growth over the past few years, launched several distinctive projects, and built a brand that stands out from the competition. As per its financial report for the third quarter of 2024, full-year capital returns to shareholders were approximately $1,250 million. This highlights the commitment of Hyatt Hotels to reward its shareholders and its ability to generate free cash flow, which also supports long-term growth initiatives.
6. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 46
MGM Resorts International (NYSE:MGM) is a Las Vegas-based hospitality and entertainment firm that runs several destination resorts. The hedge fund’s end-of-quarter filings for Q3 2024 showed ownership of 2.1 million shares in MGM Resorts International (NYSE:MGM), worth more than $85.9 million and equating to 4.05% of its 13F portfolio. In the third quarter of 2024, MGM Resorts reported a 4% increase in net revenues for its Las Vegas Strip Resorts compared to the same period in 2023, driven by higher catering and banquet revenues. Regional Operations also saw a 3% increase in net revenues, primarily due to increased casino revenue. MGM Resorts is also planning to develop Dubai Sphere, an entertainment venue as compelling as the Las Vegas Sphere, in the Middle East.
5. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 55
FedEx Corporation (NYSE:FDX) provides transportation and business services. During the third quarter of 2024, Southeastern Asset Management’s position in the company reached 444,862 shares, with a market value exceeding $121.7 million and forming 5.74% of its portfolio. FedEx is one of the long term stock picks of billionaire Mason Hawkins, evidenced by the fact that it has featured in the 13F portfolio of his hedge fund consistently, barring one quarter in 2012, since the fourth quarter of 2010. FedEx Corp has returned approximately $3.8 billion to stockholders through $2.5 billion in stock repurchases and $1.3 billion in dividend payments in the past year. Further, the company is also planning to repurchase $2.5 billion of common stock, including $1 billion during the first fiscal quarter of 2025, and previously announced a 10% increase in the annual dividend rate on its common stock to $5.52 per share. FedEx has announced its plan to spin off its freight-handling business into a standalone entity, which is expected to become the largest pure-play less-than-truckload (LTL) company in North America by revenue.
4. IAC Inc. (NASDAQ:IAC)
Number of Hedge Fund Holders: 50
IAC Inc. (NASDAQ:IAC) operates as a media and internet company worldwide. As of the conclusion of Q3 2024, the hedge fund’s holdings in IAC Inc. (NASDAQ:IAC) amounted to 2.2 million shares, valued at over $122 million and constituting 5.75% of its 13F portfolio. Southeastern Asset Management has held a stake in the company since the third quarter of 2021. This stake consisted of just over 1.5 million shares back then but has since climbed significantly. In the second quarter of 2022, it consisted of close to 3 million shares. However, in eight of the last nine quarters, the hedge fund has trimmed this holding down.
3. Affiliated Managers Group, Inc. (NYSE:AMG)
Number of Hedge Fund Holders: 33
Affiliated Managers Group, Inc. (NYSE:AMG) operates as an investment management company providing investment management services to mutual funds, institutional clients, retails and high net worth individuals in the United States. By the end of the third quarter in 2024, Southeastern Asset Management reported owning 724,829 shares in the company, worth upwards of $128.8 million, accounting for 6.07% of its 13F portfolio. The firm is one of the top long term stock picks of billionaire Mason Hawkins. It has been a part of the 13F portfolio of the fund since the third quarter of 2018. In the fourth quarter of 2022, after slashing its stake in the company by over 42%, the hedge fund has steadily continued to sell the stock, although the percentage sold has not been as noteworthy.
2. Mattel, Inc. (NASDAQ:MAT)
Number of Hedge Fund Holders: 25
Mattel, Inc. (NASDAQ:MAT) is a children’s entertainment company, designs and produces toys and consumer products worldwide. At the close of Q3 2024, the hedge fund’s investment in Mattel, Inc. (NASDAQ:MAT) stood at 7.9 million shares, with a total value exceeding $152.2 million, representing 7.17% of its disclosed portfolio. Latest filings reveal that Southeastern Asset Management has been steadily trimming its stake in the company over the past three years. It has sold off a portion of this stake for eleven straight quarters. The hedge fund first purchased shares in the company in the third quarter of 2017 at an average price of $17.8. The stock presently trades around the same range.
1. CNX Resources Corporation (NYSE:CNX)
Number of Hedge Fund Holders: 31
CNX Resources Corporation (NYSE:CNX) is an oil and gas company based in Pennsylvania. At the end of the third quarter of 2024, Southeastern Asset Management held 6.1 million shares of the company, valued at more than $201 million and making up 9.48% of its 13F holdings. Latest filings show that in five of the past six quarters, the hedge fund has slashed its stake in the company. During the third quarter, the holding was trimmed by more than 14%. However, the stock remains one of the top long term stock picks of billionaire Mason Hawkins as it has featured in the 13F portfolio of Southeastern Asset Management consistently since late 2017. Back then, the fund had purchased shares in the company at an average price of $15. The stock is presently trading at upwards of $35 per share.
While we acknowledge the potential of CNX Resources Corporation (NYSE:CNX) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than CNX Resources Corporation (NYSE:CNX) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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