Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -1.58% in the fourth quarter, compared to the Russell 3000’s 2.63% return. For the year, the fund returned 9.69% compared to 23.81% return for the benchmark. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Longleaf Partners Small-Cap Fund emphasized stocks such as Eastman Kodak Company (NYSE:KODK). Eastman Kodak Company (NYSE:KODK) offers hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets. The one-month return of Eastman Kodak Company (NYSE:KODK) was -15.67%, and its shares gained 28.69% of their value over the last 52 weeks. On March 4, 2025, Eastman Kodak Company (NYSE:KODK) stock closed at $6.46 per share with a market capitalization of $519.384 million.
Longleaf Partners Small-Cap Fund stated the following regarding Eastman Kodak Company (NYSE:KODK) in its Q4 2024 investor letter:
“Eastman Kodak Company (NYSE:KODK) – Licensing, imaging and technology company Kodak contributed for the quarter and the year. As a reminder, we hold a convertible preferred security which acts more like a bond than a common stock. Our security performed well, driven by Kodak’s significantly overfunded pension. This asset, long evident on the company’s balance sheet but ignored by the market, gained attention earlier this year after Kodak announced it was exploring changes to its structure. In the fourth quarter, the company filed an 8K detailing the next steps of a process that will ensure promises to pensioners are kept while lenders and owners will benefit from the company being in a strong financial position for the future. These moves should generate sufficient cash and borrowing power to repay our security on or before its maturity in 2026, thus we are viewing this security today as more of a current asset than a long-term equity holding like our other investments.”
A female executive surrounded by a team of employees in a manufacturing factory manipulating advanced materials and chemicals.
Eastman Kodak Company (NYSE:KODK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Eastman Kodak Company (NYSE:KODK) at the end of the fourth quarter which was 14 in the previous quarter. While we acknowledge the potential of Eastman Kodak Company (NYSE:KODK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Eastman Kodak Company (NYSE:KODK) and shared Longleaf Partners Small-Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.