Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -1.33% in the fourth quarter, compared to the S&P 500’s 2.41% return and Russell 1000 Value’s -1.98% return. For the year the fund returned 8.80% compared to 25.02% and 14.37% returns for the indexes. For more information on the fund’s best picks in 2024, please check its top five holdings.
Longleaf Partners Fund highlighted stocks like Kellanova (NYSE:K), in the fourth quarter 2024 investor letter. Kellanova (NYSE:K) engages in the manufacturing and marketing of snacks and convenience foods. The one-month return of Kellanova (NYSE:K) was 1.03%, and its shares gained 49.38% of their value over the last 52 weeks. On January 28, 2024, Kellanova (NYSE:K) stock closed at $81.80 per share with a market capitalization of $28.2 billion.
Longleaf Partners Fund stated the following regarding Kellanova (NYSE:K) in its Q4 2024 investor letter:
Kellanova (NYSE:K) – Packaged food company Kellanova was a top contributor for the year. In the third quarter, it was announced that the company would be acquired by Mars at a slight premium to our appraisal. This outcome was one of multiple potential paths to value recognition when we first invested. The company’s portfolio of strong brands had been undervalued by the market. However, the strategic spin-off of its less attractive cereal business allowed the snacks division to showcase its strengths. While we would have liked to own it longer, the company delivered strong results throughout the year, ultimately attracting a full and fair price by Mars. We exited our position in the third quarter on the price strength after the acquisition announcement.
A stack of grocery bags filled with ready-to-eat cereals, frozen waffles, and savory snacks.
Kellanova (NYSE:K) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Kellanova (NYSE:K) at the end of the third quarter which was 45 in the previous quarter. While we acknowledge the potential of Kellanova (NYSE:K) 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 Kellanova (NYSE:K) and shared the list of best cookies and crackers stocks to buy. Longleaf Partners Fund sold its position in Kellanova during Q3 2024. In addition, please check out our hedge fund investor letters Q3 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.