Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -6.31% in the second quarter, compared to S&P’s 4.28% return and Russell 1000 Value’s -2.17% return. There weren’t enough big winners in the portfolio, and the relative performance was disappointing because there were more 10%+ decliners. Conversely, the stock price declines were overreactions, and as a result, the quarter’s aggregate value per share performance exceeded the stock price performance. For more information on the fund’s best picks in 2024, please check its top five holdings.
Longleaf Partners Fund highlighted stocks like Mattel, Inc. (NASDAQ:MAT), in the second quarter 2024 investor letter. Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment company. The one-month return of Mattel, Inc. (NASDAQ:MAT) was 16.30%, and its shares lost 8.78% of their value over the last 52 weeks. On July 25, 2024, Mattel, Inc. (NASDAQ:MAT) stock closed at $18.91 per share with a market capitalization of $6.506 billion.
Longleaf Partners Fund stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its Q2 2024 investor letter:
“Mattel, Inc. (NASDAQ:MAT)– Global toy and media company Mattel detracted for the quarter. The company reported what we viewed as solid quarterly results and an affirmation of 2024 guidance. We were particularly encouraged by their decision to increase their share repurchase program, which positions them well for FCF per share growth. As the quarter went on, however, the market focused on weaker consumer purchasing trends impacting Mattel and its peers. The market also seems to have moved past the success of last year’s Barbie movie, but we believe there is significant upside from media and entertainment revenue streams that are not yet reflected in today’s earnings expectations.”
A child with a wide smile playing with the latest interactive toy.
Mattel, Inc. (NASDAQ:MAT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Mattel, Inc. (NASDAQ:MAT) was held by 35 hedge fund portfolios at the end of the first quarter, compared to 32 in the previous quarter, according to our database. Mattel, Inc. (NASDAQ:MAT) reported second-quarter sales of $1.080 billion, down 1% compared to Q2 2023. The adjusted gross margin rose by 430 basis points to 49.2%. While we acknowledge the potential of Mattel, Inc. (NASDAQ:MAT) 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 Mattel, Inc. (NASDAQ:MAT) and shared Patient Capital Opportunity Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
