Results
Longleaf Partners Funds Trust
09/06/2024 | Press release | Distributed by Public on 09/06/2024 14:47
Semi Annual Report by Investment Company Form N CSRS
united states
securities and exchange commission
washington, d.c. 20549
form n-csr
certified shareholder report of registered
management investment companies
| Investment Company Act file number | 811-4923 |
Longleaf Partners Funds Trust
(Exact name of registrant as specified in charter)
c/o Southeastern Asset Management, Inc.
| 6410 Poplar Avenue, Suite 900, Memphis, TN | 38119 | |
| (Address of principal executive offices) | (Zip code) |
Andrew R. McCarroll, Esq., Southeastern Asset Management, Inc.
6410 Poplar Avenue, Suite 900, Memphis, TN 38119
(Name and address of agent for service)
| Registrant's telephone number, including area code: | 901-761-2474 |
| Date of fiscal year end: | 12/31 | |
| Date of reporting period: | 6/30/24 |
Item 1. Reports to Stockholders.
| (a) |
Longleaf Partners Fund
(LLPFX)
Semi-Annual Shareholder Report - June 30, 2024
Fund Overview
This semi-annual shareholder report contains important information about Longleaf Partners Fund for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at southeasternasset.com/investment-offerings/longleaf-partners-fund/. You can also request this information by contacting us at (800) 445-9469.
What were the Fund's costs for the last six months?
(based on a hypothetical $10,000 investment)
|
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Longleaf Partners Fund
|
$39
|
0.79%Footnote Reference*
|
* annualized
How did the Fund perform during the reporting period?
We have bad news and good news. The bad news is that the Longleaf Partners Fund declined -6.31% in the second quarter, compared to the S&P 500 and Russell 1000 Value, which returned 4.28% and -2.17%. In the quarter, we didn't have enough significant winners, and more 10%+ decliners led to disappointing relative performance. Additionally, with the market hitting new highs regularly, we ended the quarter with a higher-than-normal 19% cash position. The good news is that our stock price declines were overreactions, resulting in our aggregate value per share performance outpacing stock price performance in the quarter. We own great companies that are on offense. It was encouraging to see large stock price moves in our favor since quarter end as of the posting of this letter. It has also been nice to see some overvalued market favorites moving in the opposite direction. We are excited about the future of the portfolio and in position to achieve our goal of double digit returns this year and beyond.
How has the Fund performed over the last ten years?
Total Return Based on $10,000 Investment
|
Longleaf Partners Fund
|
S&P 500® Index
|
|
|
Jun-2014
|
$10,000
|
$10,000
|
|
Jun-2015
|
$9,403
|
$10,742
|
|
Jun-2016
|
$8,475
|
$11,171
|
|
Jun-2017
|
$10,369
|
$13,170
|
|
Jun-2018
|
$11,168
|
$15,064
|
|
Jun-2019
|
$9,888
|
$16,633
|
|
Jun-2020
|
$8,775
|
$17,881
|
|
Jun-2021
|
$14,252
|
$25,175
|
|
Jun-2022
|
$11,986
|
$22,503
|
|
Jun-2023
|
$12,860
|
$26,912
|
|
Jun-2024
|
$13,617
|
$33,521
|
Average Annual Total Returns
|
6 Months
|
1 Year
|
5 years
|
10 Years
|
|
|
Longleaf Partners Fund
|
-0.13%
|
5.89%
|
6.61%
|
3.14%
|
|
S&P 500® Index
|
15.29%
|
24.56%
|
15.05%
|
12.86%
|
All returns of one year or less are not annualized.
The Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
What did the Fund invest in?
Sector Weighting (% of net assets)
|
Value
|
Value
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
19.2%
|
|
Health Care
|
4.2%
|
|
Consumer Staples
|
5.5%
|
|
Energy
|
5.8%
|
|
Financials
|
6.1%
|
|
Technology
|
10.7%
|
|
Communications
|
12.9%
|
|
Industrials
|
15.4%
|
|
Consumer Discretionary
|
20.2%
|
Fund Statistics
|
Net Assets
|
$1,274,138,103
|
|
Number of Portfolio Holdings
|
18
|
|
Advisory Fee (net of waivers)
|
$3,909,251
|
|
Portfolio Turnover
|
12%
|
Asset Weighting (% of net assets)
|
Value
|
Value
|
|
Common Stocks
|
80.8%
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
19.2%
|
Top 10 Holdings (% of net assets)
|
Holding Name
|
% of Net Assets
|
|
FedEx Corporation
|
7.1%
|
|
Affiliated Managers Group, Inc.
|
6.0%
|
|
CNX Resources Corporation
|
5.8%
|
|
Fidelity National Information Services, Inc.
|
5.5%
|
|
Kellanova
|
5.5%
|
|
IAC, Inc.
|
5.4%
|
|
MGM Resorts International
|
5.2%
|
|
Mattel, Inc.
|
4.8%
|
|
CNH Industrial NV
|
4.8%
|
|
Bio-Rad Laboratories, Inc. - Class A
|
4.2%
|
Material Fund Changes
No material changes occurred during the period ended June 30, 2024.
Where can I find additional information about the Fund?
Additional information is available on the Fund's website (southeasternasset.com/investment-offerings/longleaf-partners-fund/), including its:
-
Prospectus
-
Financial information
-
Holdings
-
Proxy voting information
TSR-Longleaf-P-SAR 063024
Longleaf Partners Fund - - (LLPFX)
Semi-Annual Shareholder Report - June 30, 2024
Longleaf Partners Global Fund
(LLGLX)
Semi-Annual Shareholder Report - June 30, 2024
Fund Overview
This semi-annual shareholder report contains important information about Longleaf Partners Global Fund for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at southeasternasset.com/investment-offerings/longleaf-partners-global-fund/. You can also request this information by contacting us at (800) 445-9469.
What were the Fund's costs for the last six months?
(based on a hypothetical $10,000 investment)
|
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Longleaf Partners Global Fund
|
$53
|
1.05%Footnote Reference*
|
* annualized
How did the Fund perform during the reporting period?
We have bad news and good news. The bad news is that the Longleaf Partners Global Fund declined -4.81% in the second quarter, behind the FTSE Developed and FTSE Developed Value indices, which returned 2.48% and -1.66%, respectively. In the quarter, we didn't have enough significant winners, and more 10%+ decliners led to disappointing relative performance. The good news is that our stock price declines were overreactions, resulting in our aggregate value per share performance outpacing stock price performance in the quarter. We own great companies that are on offense. It was encouraging to see large stock price moves in our favor since quarter end as of the posting of this letter. It has also been nice to see some overvalued market favorites moving in the opposite direction. We are excited about the future of the portfolio and in position to achieve our goal of double digit returns this year and beyond.
How has the Fund performed over the last ten years?
Total Return Based on $10,000 Investment
|
Longleaf Partners Global Fund
|
FTSE Developed Index - Net Tax TR (USD) Index
|
|
|
Jun-2014
|
$10,000
|
$10,000
|
|
Jun-2015
|
$8,566
|
$10,118
|
|
Jun-2016
|
$7,760
|
$9,835
|
|
Jun-2017
|
$11,089
|
$11,675
|
|
Jun-2018
|
$11,685
|
$12,962
|
|
Jun-2019
|
$11,088
|
$13,704
|
|
Jun-2020
|
$9,994
|
$14,090
|
|
Jun-2021
|
$14,048
|
$19,621
|
|
Jun-2022
|
$10,658
|
$16,701
|
|
Jun-2023
|
$11,922
|
$19,754
|
|
Jun-2024
|
$12,711
|
$23,665
|
Average Annual Total Returns
|
6 Months
|
1 Year
|
5 Years
|
10 Years
|
|
|
Longleaf Partners Global Fund
|
3.18%
|
6.62%
|
2.77%
|
2.43%
|
|
FTSE Developed Index - Net Tax TR (USD) Index
|
11.32%
|
19.80%
|
11.55%
|
9.00%
|
All returns of one year or less are not annualized.
The Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
What did the Fund invest in?
Sector Weighting (% of net assets)
|
Value
|
Value
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
3.1%
|
|
Health Care
|
4.0%
|
|
Technology
|
4.9%
|
|
Energy
|
6.0%
|
|
Consumer Staples
|
9.0%
|
|
Industrials
|
11.4%
|
|
Financials
|
11.6%
|
|
Communications
|
23.8%
|
|
Consumer Discretionary
|
26.2%
|
Fund Statistics
|
Net Assets
|
$247,275,780
|
|
Number of Portfolio Holdings
|
22
|
|
Advisory Fee (net of waivers)
|
$1,089,414
|
|
Portfolio Turnover
|
17%
|
Asset Weighting (% of net assets)
|
Value
|
Value
|
|
Common Stocks
|
96.9%
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
3.1%
|
Country Weighting (% of net assets)
|
Value
|
Value
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
3.1%
|
|
United Kingdom
|
2.6%
|
|
Germany
|
3.5%
|
|
Ireland
|
3.9%
|
|
Switzerland
|
4.9%
|
|
Sweden
|
5.9%
|
|
France
|
10.8%
|
|
Netherlands
|
11.8%
|
|
United States
|
53.5%
|
Top 10 Holdings (% of net assets)
|
Holding Name
|
% of Net Assets
|
|
FedEx Corporation
|
6.9%
|
|
Exor N.V.
|
6.0%
|
|
CNX Resources Corporation
|
6.0%
|
|
Millicom International Cellular SA
|
5.9%
|
|
Prosus NV
|
5.8%
|
|
Affiliated Managers Group, Inc.
|
5.6%
|
|
IAC, Inc.
|
5.2%
|
|
Kellanova
|
5.1%
|
|
Compagnie Financiere Richemont S.A.
|
4.9%
|
|
Fidelity National Information Services, Inc.
|
4.9%
|
Material Fund Changes
No material changes occurred during the period ended June 30, 2024.
Where can I find additional information about the Fund?
Additional information is available on the Fund's website (southeasternasset.com/investment-offerings/longleaf-partners-global-fund/), including its:
-
Prospectus
-
Financial information
-
Holdings
-
Proxy voting information
TSR-Longleaf-G-SAR 063024
Longleaf Partners Global Fund - - (LLGLX)
Semi-Annual Shareholder Report - June 30, 2024
Longleaf Partners International Fund
(LLINX)
Semi-Annual Shareholder Report - June 30, 2024
Fund Overview
This semi-annual shareholder report contains important information about Longleaf Partners International Fund for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at southeasternasset.com/investment-offerings/longleaf-partners-international-fund/. You can also request this information by contacting us at (800) 445-9469.
What were the Fund's costs for the last six months?
(based on a hypothetical $10,000 investment)
|
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Longleaf Partners International Fund
|
$52
|
1.05%Footnote Reference*
|
* annualized
How did the Fund perform during the reporting period?
Longleaf Partners International Fund declined -4.24% in the second quarter; the FTSE Developed ex-North America Index fell -0.75%. The quarter started off with a robust Q1 reporting season, highlighting strong performance across most of our businesses and solid value growth. However, share prices peaked early and were subsequently overshadowed by broader macroeconomic concerns and election cycles, particularly in Mexico, the United Kingdom, and France, where we have relative overweight exposure, except in the United Kingdom, where we are in line with the index. We believe these headwinds are temporary and may even prove beneficial for our companies. While the market dislikes the near-term uncertainty of election cycles, we own companies we believe are, at worst, immune due to the non-discretionary nature of their products and services, strong brands and/or diversified end market exposures with highly resilient market dynamics. We look forward to these companies demonstrating their structural strengths through the H1 reporting season, which we expect will refocus the market on stock-specific fundamentals where our investees excel. An exception to the negative election trend was India, where the market quickly rebounded after elections, as seen in the strong performance of HDFC Bank. Our portfolio features competitively advantaged businesses, many led by owner-operators. We are eager for the market to refocus on fundamentals, which we believe remain strong for the businesses we own, once the election outcomes mentioned above are resolved.
How has the Fund performed over the last ten years?
Total Return Based on $10,000 Investment
|
Longleaf Partners International Fund
|
FTSE Developed ex North America Index - Net Tax TR (USD) Index
|
|
|
Jun-2014
|
$10,000
|
$10,000
|
|
Jun-2015
|
$8,609
|
$9,585
|
|
Jun-2016
|
$7,721
|
$8,660
|
|
Jun-2017
|
$10,218
|
$10,489
|
|
Jun-2018
|
$10,755
|
$11,227
|
|
Jun-2019
|
$11,336
|
$11,232
|
|
Jun-2020
|
$9,495
|
$10,726
|
|
Jun-2021
|
$12,800
|
$14,427
|
|
Jun-2022
|
$9,193
|
$11,662
|
|
Jun-2023
|
$10,871
|
$13,758
|
|
Jun-2024
|
$11,131
|
$15,301
|
Average Annual Total Returns
|
6 Months
|
1 Year
|
5 Years
|
10 Years
|
|
|
Longleaf Partners International Fund
|
-
0.75%
|
2.39%
|
-
0.36%
|
1.08%
|
|
FTSE Developed ex North America Index - Net Tax TR (USD) Index
|
4.68%
|
11.22%
|
6.38%
|
4.35%
|
All returns of one year or less are not annualized.
The Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares.
What did the Fund invest in?
Sector Weighting (% of net assets)
|
Value
|
Value
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
5.3%
|
|
Industrials
|
3.9%
|
|
Materials
|
5.1%
|
|
Financials
|
10.2%
|
|
Communications
|
15.5%
|
|
Consumer Staples
|
21.3%
|
|
Consumer Discretionary
|
38.7%
|
Fund Statistics
|
Net Assets
|
$697,252,180
|
|
Number of Portfolio Holdings
|
26
|
|
Advisory Fee (net of waivers)
|
$3,085,165
|
|
Portfolio Turnover
|
24%
|
Asset Weighting (% of net assets)
|
Value
|
Value
|
|
Common Stocks
|
94.7%
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
5.3%
|
Country Weighting (% of net assets)
|
Value
|
Value
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
5.3%
|
|
Other Countries
|
13.7%
|
|
Sweden
|
4.2%
|
|
India
|
5.2%
|
|
Ireland
|
6.0%
|
|
Switzerland
|
6.2%
|
|
Germany
|
6.3%
|
|
Hong Kong
|
8.6%
|
|
Mexico
|
9.5%
|
|
Netherlands
|
10.0%
|
|
United Kingdom
|
11.3%
|
|
France
|
13.7%
|
Top 10 Holdings (% of net assets)
|
Holding Name
|
% of Net Assets
|
|
Compagnie Financiere Richemont S.A.
|
6.1%
|
|
Glanbia PLC
|
6.0%
|
|
Accor SA
|
5.9%
|
|
Premier Foods PLC
|
5.8%
|
|
HDFC Bank Ltd.
|
5.2%
|
|
Prosus NV
|
5.0%
|
|
Exor N.V.
|
5.0%
|
|
Gruma, S.A.B. DE C.V.
|
4.9%
|
|
Becle S.A.B. de C.V.
|
4.6%
|
|
Millicom International Cellular SA
|
4.2%
|
Material Fund Changes
No material changes occurred during the period ended June 30, 2024.
Where can I find additional information about the Fund?
Additional information is available on the Fund's website (southeasternasset.com/investment-offerings/longleaf-partners-international-fund/), including its:
-
Prospectus
-
Financial information
-
Holdings
-
Proxy voting information
TSR-Longleaf-I-SAR 063024
Longleaf Partners International Fund - - (LLINX)
Semi-Annual Shareholder Report - June 30, 2024
Longleaf Partners Small-Cap Fund
(LLSCX)
Semi-Annual Shareholder Report - June 30, 2024
Fund Overview
This semi-annual shareholder report contains important information about Longleaf Partners Small-Cap Fund for the period of January 1, 2024 to June 30, 2024.You can find additional information about the Fund at southeasternasset.com/investment-offerings/longleaf-partners-small-cap-fund/. You can also request this information by contacting us at (800) 445-9469.
What were the Fund's costs for the last six months?
(based on a hypothetical $10,000 investment)
|
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Longleaf Partners Small-Cap Fund
|
$48
|
0.95%Footnote Reference*
|
* annualized
How did the Fund perform during the reporting period?
Longleaf Partners Small-Cap Fund returned -4.24% in the second quarter, underperforming both the Russell 3000 and Russell 2000 in another tough quarter for small-cap stocks. The Fund is still up in absolute terms and ahead of the Russell 2000 for the year. The Fund's objective has remained the same since its inception: to deliver long-term, double-digit absolute returns. While most of our companies saw operational progress in the quarter, this did not translate into stock price gains. Over 100% of the Russell 3000's performance was driven by the Information Technology sector and many of its larger-cap components. Conversely, the Russell 2000 saw a decline for the quarter, with only two sectors positively contributing to returns. This compared to the Russell 2000 Value, a more style-appropriate index, that was down -3.64% in the quarter, with no sectors contributing positively. We have written before about the Small-Cap Fund's long history of benefitting from corporate actions such as asset sales, spin-offs and whole company sales and mergers. After a deferral of these events during the last few years, we are now to a point where over 50% of the portfolio's NAV is in at least 10 investments with heightened odds of value-realizing corporate events occurring over the next 6-12 months. We will not bat 1.000 on these opportunities, but this uniquely high percentage boosts our confidence in near term future returns. With US Treasury interest rates stabilizing at historical norms, we believe the environment is becoming increasingly favorable for true bottom-up stock pickers like us. In the long run, stock picking will be what matters most and is where we can deliver the most value for our clients.
How has the Fund performed over the last ten years?
Total Return Based on $10,000 Investment
|
Longleaf Partners Small-Cap Fund
|
Russell 3000® Total Return Index
|
Russell 2000® Total Return Index
|
|
|
Jun-2014
|
$10,000
|
$10,000
|
$10,000
|
|
Jun-2015
|
$10,775
|
$10,729
|
$10,649
|
|
Jun-2016
|
$10,657
|
$10,959
|
$9,932
|
|
Jun-2017
|
$12,232
|
$12,987
|
$12,375
|
|
Jun-2018
|
$13,683
|
$14,907
|
$14,549
|
|
Jun-2019
|
$12,976
|
$16,246
|
$14,067
|
|
Jun-2020
|
$10,304
|
$17,306
|
$13,135
|
|
Jun-2021
|
$16,851
|
$24,950
|
$21,283
|
|
Jun-2022
|
$13,981
|
$21,490
|
$15,920
|
|
Jun-2023
|
$14,357
|
$25,563
|
$17,879
|
|
Jun-2024
|
$16,328
|
$31,475
|
$19,677
|
Average Annual Total Returns
|
6 Months
|
1 Year
|
5 Years
|
10 Years
|
|
|
Longleaf Partners Small-Cap Fund
|
2.32%
|
13.73%
|
4.70%
|
5.03%
|
|
Russell 3000® Total Return Index
|
13.56%
|
23.13%
|
14.14%
|
12.15%
|
|
Russell 2000® Total Return Index
|
1.73%
|
10.06%
|
6.94%
|
7.00%
|
All returns of one year or less are not annualized.
The Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Effective May 1, 2024, the Fund changed its broad-based securities market index to the Russell 3000 Index due to regulatory requirements. The Fund retained the Russell 2000 Index as a performance benchmark because it is more closely aligned with the Fund's investment strategy.
What did the Fund invest in?
Sector Weighting (% of net assets)
|
Value
|
Value
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
12.3%
|
|
Communications
|
3.2%
|
|
Financials
|
4.5%
|
|
Health Care
|
4.8%
|
|
Energy
|
6.0%
|
|
Real Estate
|
17.1%
|
|
Consumer Staples
|
22.8%
|
|
Consumer Discretionary
|
29.3%
|
Fund Statistics
|
Net Assets
|
$792,382,313
|
|
Number of Portfolio Holdings
|
20
|
|
Advisory Fee (net of waivers)
|
$3,157,051
|
|
Portfolio Turnover
|
17%
|
Asset Weighting (% of net assets)
|
Value
|
Value
|
|
Common Stocks
|
77.2%
|
|
Preferred Stocks
|
10.5%
|
|
Short-Term Investments and Other Assets (Liabilities), Net
|
12.3%
|
Top 10 Holdings (% of net assets)
|
Holding Name
|
% of Net Assets
|
|
Eastman Kodak Company Convertible Preferred Stock - Series B 4.00%
|
10.5%
|
|
Westrock Coffee Company
|
6.4%
|
|
CNX Resources Corporation
|
6.0%
|
|
Graham Holdings Company - Class B
|
6.0%
|
|
Gruma, S.A.B. DE C.V.
|
5.9%
|
|
Mattel, Inc.
|
5.2%
|
|
Atlanta Braves Holdings, Inc. - Class C
|
4.9%
|
|
Oscar Health, Inc. - Class A
|
4.8%
|
|
Park Hotels & Resorts, Inc.
|
4.6%
|
|
White Mountains Insurance Group Ltd.
|
4.5%
|
Material Fund Changes
No material changes occurred during the period ended June 30, 2024.
Where can I find additional information about the Fund?
Additional information is available on the Fund's website (southeasternasset.com/investment-offerings/longleaf-partners-small-cap-fund/), including its:
-
Prospectus
-
Financial information
-
Holdings
-
Proxy voting information
TSR-Longleaf-SC-SAR 063024
Longleaf Partners Small-Cap Fund - - (LLSCX)
Semi-Annual Shareholder Report - June 30, 2024
| (b) | Not applicable |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6. Investments.
Schedule of investments in securities of unaffiliated issuers is included under Item 7.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
| (a) |
Semi-
Annual
Financial
Statements
June 30, 2024
Partners Fund
Small-Cap Fund
International Fund
Global Fund
/ 1
Portfolio of Investments(Unaudited)
Partners Fund
| Common Stocks | ||||||||||||
| Shares | Value |
% of Net Assets |
||||||||||
| Aerospace & Defense | ||||||||||||
| RTX Corporation | 450,782 | $ | 45,254,005 | 3.6 | % | |||||||
| Apparel & Textile Products | ||||||||||||
| PVH Corporation | 437,447 | 46,312,514 | 3.6 | |||||||||
| Asset Management | ||||||||||||
| Affiliated Managers Group, Inc. | 492,252 | 76,904,530 | 6.0 | |||||||||
| Entertainment Content | ||||||||||||
| Warner Bros Discovery, Inc. Series A(a) | 6,495,012 | 48,322,889 | 3.8 | |||||||||
| Warner Music Group Corporation | 1,544,530 | 47,339,845 | 3.7 | |||||||||
| 95,662,734 | 7.5 | |||||||||||
| Food | ||||||||||||
| Kellanova | 1,205,334 | 69,523,665 | 5.5 | |||||||||
| Internet Media & Services | ||||||||||||
| IAC, Inc.(a) | 1,464,721 | 68,622,179 | 5.4 | |||||||||
| Leisure Facilities & Services | ||||||||||||
| Hyatt Hotels Corporation - Class A | 227,601 | 34,577,144 | 2.7 | |||||||||
| Live Nation Entertainment, Inc.(a) | 526,472 | 49,351,485 | 3.9 | |||||||||
| MGM Resorts International(a) | 1,490,343 | 66,230,842 | 5.2 | |||||||||
| 150,159,471 | 11.8 | |||||||||||
| Leisure Products | ||||||||||||
| Mattel, Inc.(a) | 3,772,498 | 61,340,817 | 4.8 | |||||||||
| Machinery | ||||||||||||
| CNH Industrial NV (Netherlands) | 5,969,924 | 60,475,330 | 4.8 | |||||||||
| Medical Equipment & Devices | ||||||||||||
| Bio-Rad Laboratories, Inc. - Class A(a) | 196,969 | 53,794,204 | 4.2 | |||||||||
| Oil & Gas Producers | ||||||||||||
| CNX Resources Corporation(a) | 3,049,163 | 74,094,661 | 5.8 | |||||||||
| Technology Services | ||||||||||||
| Fidelity National Information Services, Inc. | 929,871 | 70,075,079 | 5.5 | |||||||||
| Fiserv, Inc.(a) | 178,443 | 26,595,145 | 2.1 | |||||||||
| PayPal Holdings, Inc.(a) | 686,174 | 39,818,677 | 3.1 | |||||||||
| 136,488,901 | 10.7 | |||||||||||
| Transportation & Logistics | ||||||||||||
| FedEx Corporation | 301,612 | 90,435,342 | 7.1 | |||||||||
| Total Common Stocks (Cost $968,243,994) | 1,029,068,353 | 80.8 |
| Short-Term Obligations | ||||||||||||
| Principal Amount | ||||||||||||
| Repurchase agreement with State Street Bank, 4.46%, dated 06/28/24, due 07/01/24, Repurchase price $246,633,631 (Collateral: $251,472,840 U.S. Treasury Notes, .125% due 07/15/2031 - 01/15/2032, Par $248,449,500) (Cost $246,542,000) | 246,542,000 | 246,542,000 | 19.3 | |||||||||
| Total Investments (Cost $1,214,785,994) | 1,275,610,353 | 100.1 | ||||||||||
| Other Assets (Liabilities), Net | (1,472,250 | ) | (0.1 | ) | ||||||||
| Net Assets | $ | 1,274,138,103 | 100.0 | % |
| (a) | Non-income producing security. |
See Notes to Financial Statements.
/ 2
Portfolio of Investments (Unaudited)
Small-Cap Fund
| Common Stocks | ||||||||||||
| Shares | Value |
% of Net Assets |
||||||||||
| Beverages | ||||||||||||
| The Boston Beer Company, Inc. - Class A(a) | 106,204 | $ | 32,397,530 | 4.1 | % | |||||||
| Westrock Coffee Company(a)(b) | 4,990,822 | 51,056,109 | 6.4 | |||||||||
| 83,453,639 | 10.5 | |||||||||||
| Consumer Services | ||||||||||||
| Graham Holdings Company - Class B | 67,379 | 47,134,979 | 6.0 | |||||||||
| Food | ||||||||||||
| Dole PLC | 1,625,656 | 19,898,029 | 2.5 | |||||||||
| Gruma, S.A.B. DE C.V. (Mexico) | 2,559,525 | 46,696,940 | 5.9 | |||||||||
| 66,594,969 | 8.4 | |||||||||||
| Health Care Facilities & Services | ||||||||||||
| Oscar Health, Inc. - Class A(a) | 2,398,239 | 37,940,141 | 4.8 | |||||||||
| Insurance | ||||||||||||
| White Mountains Insurance Group Ltd. | 19,618 | 35,654,734 | 4.5 | |||||||||
| Leisure Facilities & Services | ||||||||||||
| Atlanta Braves Holdings, Inc. - Class C(a) | 982,236 | 38,739,389 | 4.9 | |||||||||
| Hyatt Hotels Corporation - Class A | 145,394 | 22,088,256 | 2.8 | |||||||||
| 60,827,645 | 7.7 | |||||||||||
| Leisure Products | ||||||||||||
| Mattel, Inc.(a) | 2,521,419 | 40,998,273 | 5.2 | |||||||||
| Oil & Gas Producers | ||||||||||||
| CNX Resources Corporation(a) | 1,952,183 | 47,438,047 | 6.0 | |||||||||
| Publishing & Broadcasting | ||||||||||||
| Liberty Media Corporation Liberty Live - Class A(a) | 119,706 | 4,490,172 | 0.6 | |||||||||
| Liberty Media Corporation Liberty Live - Class C(a) | 551,440 | 21,103,609 | 2.6 | |||||||||
| 25,593,781 | 3.2 | |||||||||||
| Real Estate Owners & Developers | ||||||||||||
| Howard Hughes Holdings, Inc.(a) | 319,418 | 20,704,675 | 2.6 | |||||||||
| Real Estate Services | ||||||||||||
| Anywhere Real Estate, Inc.(a)(b) | 5,710,068 | 18,900,325 | 2.4 | |||||||||
| REITS | ||||||||||||
| Empire State Realty Trust, Inc. | 2,712,894 | 25,446,945 | 3.2 | |||||||||
| Park Hotels & Resorts, Inc. | 2,425,421 | 36,332,806 | 4.6 | |||||||||
| PotlatchDeltic Corporation | 871,097 | 34,312,511 | 4.3 | |||||||||
| 96,092,262 | 12.1 | |||||||||||
| Retail - Consumer Staples | ||||||||||||
| Ingles Markets, Inc. - Class A | 440,184 | 30,201,024 | 3.8 | |||||||||
| Total Common Stocks (Cost $490,565,846) | 611,534,494 | 77.2 |
| Preferred Stock | ||||||||||||
| Consumer Services | ||||||||||||
| Eastman Kodak Company Convertible Preferred Stock - Series B 4.00%(b)(c)(d) (Cost $95,452,160) | 932,150 | 83,334,210 | 10.5 |
See Notes to Financial Statements.
/ 3
| Short-Term Obligations | ||||||||||||
| Principal Amount | Value |
% of Net Assets |
||||||||||
| Repurchase agreement with State Street Bank, 4.46%, dated 06/28/24, due 07/01/24, Repurchase price $98,949,763 (Collateral: $100,891,260 U.S. Treasury Notes, .125% due 01/15/2032, Par $102,631,700) (Cost $98,913,000) | 98,913,000 | $ | 98,913,000 | 12.5 | % | |||||||
| Total Investments (Cost $684,931,006) | 793,781,704 | 100.2 | ||||||||||
| Other Assets (Liabilities), Net | (1,399,391 | ) | (0.2 | ) | ||||||||
| Net Assets | $ | 792,382,313 | 100.0 | % |
| (a) | Non-income producing security. |
| (b) | Affiliated issuer during the period. See Note 6. |
| (c) | Investment categorized as Level 3 in fair value hierarchy. See Note 7. |
| (d) | These shares were acquired directly from the issuer in a private placement on February 26, 2021 with a total cost at June 30, 2024 of $95,452,160. They are considered restricted securities under the Securities Act of 1933 (the "33 Act"). These shares may be sold only if registered under the 33 Act or an exemption is available. The issuer has filed with the SEC a registration statement on Form S-3 providing for the potential resale on an ongoing basis under 33 Act Rule 415 of Common Stock issuable upon conversion of the Series B Preferred Stock, subject to certain terms of a Registration Rights Agreement with the issuer. Due to the lack of an active trading market, all or a portion of this position may be illiquid. Judgment plays a greater role in valuing illiquid securities than those for which a more active market exists, and are valued by Southeastern Asset Management as designee under procedures adopted by the Board of Trustees (See Note 2). |
See Notes to Financial Statements.
/ 4
Portfolio of Investments (Unaudited)
International Fund
| Common Stocks | ||||||||||||
| Shares | Value |
% of Net Assets |
||||||||||
| Apparel & Textile Products | ||||||||||||
| Compagnie Financiere Richemont S.A. (Switzerland) | 274,651 | $ | 42,929,004 | 6.1 | % | |||||||
| Samsonite International SA (Hong Kong) | 5,070,900 | 15,114,838 | 2.2 | |||||||||
| 58,043,842 | 8.3 | |||||||||||
| Asset Management | ||||||||||||
| Exor N.V. (Netherlands) | 333,738 | 34,870,617 | 5.0 | |||||||||
| Banking | ||||||||||||
| HDFC Bank Ltd. (India) | 1,786,141 | 36,062,526 | 5.2 | |||||||||
| Beverages | ||||||||||||
| Becle S.A.B. de C.V. (Mexico) | 17,552,009 | 31,726,104 | 4.6 | |||||||||
| Chemicals | ||||||||||||
| Kansai Paint Company Ltd. (Japan) | 1,036,000 | 16,753,133 | 2.4 | |||||||||
| LANXESS AG (Germany) | 757,573 | 18,640,378 | 2.7 | |||||||||
| 35,393,511 | 5.1 | |||||||||||
| Commercial Support Services | ||||||||||||
| Eurofins Scientific (France) | 540,733 | 27,081,187 | 3.9 | |||||||||
| Consumer Cyclycial | ||||||||||||
| Katitas Company, Ltd. (Japan) | 46,400 | 502,749 | 0.1 | |||||||||
| E-Commerce Discretionary | ||||||||||||
| Prosus NV (Netherlands) | 986,875 | 35,101,196 | 5.0 | |||||||||
| Entertainment Content | ||||||||||||
| Vivendi S.A. (France) | 2,605,733 | 27,241,447 | 3.9 | |||||||||
| Food | ||||||||||||
| Glanbia PLC (Ireland) | 2,145,737 | 41,834,402 | 6.0 | |||||||||
| Gruma, S.A.B. DE C.V. (Mexico) | 1,891,673 | 34,512,395 | 4.9 | |||||||||
| Premier Foods PLC (United Kingdom) | 20,001,116 | 40,150,394 | 5.8 | |||||||||
| 116,497,191 | 16.7 | |||||||||||
| Home & Office Products | ||||||||||||
| Man Wah Holdings Limited (Hong Kong) | 30,077,500 | 20,634,853 | 3.0 | |||||||||
| Internet Media & Services | ||||||||||||
| Delivery Hero SE (Germany) | 1,066,012 | 25,329,490 | 3.6 | |||||||||
| NAVER Corporation (South Korea) | 217,984 | 26,176,045 | 3.8 | |||||||||
| 51,505,535 | 7.4 | |||||||||||
| Leisure Facilities & Services | ||||||||||||
| Accor SA (France) | 998,075 | 40,851,188 | 5.9 | |||||||||
| Domino's Pizza Group PLC (United Kingdom) | 6,907,395 | 26,759,946 | 3.8 | |||||||||
| Entain PLC (United Kingdom) | 1,511,301 | 11,984,252 | 1.7 | |||||||||
| H World Group Ltd. (China) | 905,200 | 3,011,198 | 0.4 | |||||||||
| H World Group Ltd. - ADR (China) | 677,332 | 22,568,702 | 3.2 | |||||||||
| Jollibee Foods Corporation (Philippines) | 6,818,370 | 26,340,604 | 3.8 | |||||||||
| Melco International Development Ltd.(a) (Hong Kong) | 2,154,700 | 1,445,532 | 0.2 | |||||||||
| Melco Resorts & Entertainment Ltd. - ADR(a) (Hong Kong) | 3,053,733 | 22,780,848 | 3.3 | |||||||||
| 155,742,270 | 22.3 | |||||||||||
| Telecommunications | ||||||||||||
| Millicom International Cellular SA(a) (Sweden) | 1,217,538 | 29,569,502 | 4.2 | |||||||||
| Total Common Stocks (Cost $565,892,286) | 659,972,530 | 94.7 |
See Notes to Financial Statements.
/ 5
| Short-Term Obligations | ||||||||||||
| Principal Amount | Value |
% of Net Assets |
||||||||||
| Repurchase agreement with State Street Bank, 4.46%, dated 06/28/24, due 07/01/24, Repurchase price $31,717,784 (Collateral: $32,340,120 U.S. Treasury Note, .125% due 07/15/2031, Par $31,369,600) (Cost $31,706,000) | 31,706,000 | $ | 31,706,000 | 4.5 | % | |||||||
| Total Investments (Cost $597,598,286) | 691,678,530 | 99.2 | ||||||||||
| Other Assets (Liabilities), Net | 5,573,650 | 0.8 | ||||||||||
| Net Assets | $ | 697,252,180 | 100.0 | % |
| (a) | Non-income producing security. |
See Notes to Financial Statements.
/ 6
Portfolio of Investments (Unaudited)
Global Fund
| Common Stocks | ||||||||||||
| Shares | Value |
% of Net Assets |
||||||||||
| Apparel & Textile Products | ||||||||||||
| Compagnie Financiere Richemont S.A. (Switzerland) | 77,572 | $ | 12,124,801 | 4.9 | % | |||||||
| Asset Management | ||||||||||||
| Affiliated Managers Group, Inc. | 89,245 | 13,942,746 | 5.6 | |||||||||
| Exor N.V. (Netherlands) | 141,869 | 14,823,184 | 6.0 | |||||||||
| 28,765,930 | 11.6 | |||||||||||
| Commercial Support Services | ||||||||||||
| Eurofins Scientific (France) | 223,991 | 11,217,999 | 4.5 | |||||||||
| E-Commerce Discretionary | ||||||||||||
| Prosus NV (Netherlands) | 406,140 | 14,445,598 | 5.8 | |||||||||
| Entertainment Content | ||||||||||||
| Vivendi S.A. (France) | 943,647 | 9,865,288 | 4.0 | |||||||||
| Warner Bros Discovery, Inc.(a) | 1,201,969 | 8,942,649 | 3.6 | |||||||||
| Warner Music Group Corporation | 133,467 | 4,090,764 | 1.7 | |||||||||
| 22,898,701 | 9.3 | |||||||||||
| Food | ||||||||||||
| Glanbia PLC (Ireland) | 488,686 | 9,527,676 | 3.9 | |||||||||
| Kellanova | 219,961 | 12,687,350 | 5.1 | |||||||||
| 22,215,026 | 9.0 | |||||||||||
| Internet Media & Services | ||||||||||||
| Delivery Hero SE(a) (Germany) | 365,075 | 8,674,540 | 3.5 | |||||||||
| IAC, Inc.(a) | 271,062 | 12,699,255 | 5.2 | |||||||||
| 21,373,795 | 8.7 | |||||||||||
| Leisure Facilities & Services | ||||||||||||
| Accor SA (France) | 135,139 | 5,531,236 | 2.2 | |||||||||
| Entain PLC (United Kingdom) | 809,555 | 6,419,576 | 2.6 | |||||||||
| Live Nation Entertainment, Inc.(a) | 100,914 | 9,459,679 | 3.8 | |||||||||
| MGM Resorts International(a) | 192,394 | 8,549,990 | 3.5 | |||||||||
| 29,960,481 | 12.1 | |||||||||||
| Leisure Products | ||||||||||||
| Mattel, Inc.(a) | 505,258 | 8,215,495 | 3.3 | |||||||||
| Medical Equipment & Devices | ||||||||||||
| Bio-Rad Laboratories, Inc. Class A(a) | 36,155 | 9,874,292 | 4.0 | |||||||||
| Oil & Gas Producers | ||||||||||||
| CNX Resources Corporation(a) | 607,534 | 14,763,076 | 6.0 | |||||||||
| Technology Services | ||||||||||||
| Fidelity National Information Services, Inc. | 159,851 | 12,046,371 | 4.9 | |||||||||
| Telecommunications | ||||||||||||
| Millicom International Cellular SA (Sweden) | 603,684 | 14,661,255 | 5.9 | |||||||||
| Transportation & Logistics | ||||||||||||
| FedEx Corporation | 56,696 | 16,999,728 | 6.9 | |||||||||
| Total Common Stocks (Cost $225,529,265) | 239,562,548 | 96.9 |
See Notes to Financial Statements.
/ 7
| Short-Term Obligations | ||||||||||||
| Principal Amount | Value |
% of Net Assets |
||||||||||
| Repurchase agreement with State Street Bank, 4.46%, dated 06/28/24, due 07/01/24, Repurchase price $7,966,960 (Collateral: $8,123,280 U.S. Treasury Note, .125% due 07/15/2031, Par $7,879,500) (Cost $7,964,000) | 7,964,000 | $ | 7,964,000 | 3.2 | % | |||||||
| Total Investments (Cost $233,493,265) | 247,526,548 | 100.1 | ||||||||||
| Other Assets (Liabilities), Net | (250,768 | ) | (0.1 | ) | ||||||||
| Net Assets | $ | 247,275,780 | 100.0 | % |
| (a) | Non-income producing security. |
See Notes to Financial Statements.
/ 8
Statements of Assets and Liabilities (Unaudited)
at June 30, 2024
|
Partners Fund |
Small-Cap Fund |
International Fund |
Global Fund |
|||||||||||||
| Assets: | ||||||||||||||||
| Investments in unaffiliated securities, at cost | $ | 968,243,994 | $ | 382,636,722 | $ | 565,892,286 | $ | 225,529,265 | ||||||||
| Investments in affiliated securities, at cost | - | 203,381,284 | - | - | ||||||||||||
| Investments in repurchase agreements, at cost | 246,542,000 | 98,913,000 | 31,706,000 | 7,964,000 | ||||||||||||
| Total Securities, at cost | 1,214,785,994 | 684,931,006 | 597,598,286 | 233,493,265 | ||||||||||||
| Investments in unaffiliated securities, at fair value | 1,029,068,353 | 541,578,060 | 659,972,530 | 239,562,548 | ||||||||||||
| Investments in affiliated securities, at fair value | - | 153,290,644 | - | - | ||||||||||||
| Investments in repurchase agreements, at fair value | 246,542,000 | 98,913,000 | 31,706,000 | 7,964,000 | ||||||||||||
| Total Securities, at fair value | 1,275,610,353 | 793,781,704 | 691,678,530 | 247,526,548 | ||||||||||||
| Cash | - | 1,393 | 857 | 334 | ||||||||||||
| Foreign Cash (Cost $-, $-, $87,820 and $18, respectively) | - | - | 87,820 | 18 | ||||||||||||
| Receivable from: | ||||||||||||||||
| Dividends and interest | 508,022 | 1,193,557 | 407,167 | 85,118 | ||||||||||||
| Fund shares sold | 1,681 | 16,091 | 239,360 | 795 | ||||||||||||
| Securities Sold | - | - | 12,647,154 | - | ||||||||||||
| Total Assets | 1,276,120,056 | 794,992,745 | 705,060,888 | 247,612,813 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Payable for: | ||||||||||||||||
| Fund shares redeemed | 1,017,715 | 106,631 | 15,508 | 78,349 | ||||||||||||
| Securities purchased | - | 1,797,612 | 7,079,964 | - | ||||||||||||
| Investment Counsel fee | 666,981 | 528,916 | 534,563 | 188,722 | ||||||||||||
| Administration fee | 31,616 | 19,976 | 17,910 | 6,219 | ||||||||||||
| Other accrued expenses | 265,641 | 157,297 | 160,763 | 63,743 | ||||||||||||
| Total Liabilities | 1,981,953 | 2,610,432 | 7,808,708 | 337,033 | ||||||||||||
| Net Assets | $ | 1,274,138,103 | $ | 792,382,313 | $ | 697,252,180 | $ | 247,275,780 | ||||||||
| Net assets consist of: | ||||||||||||||||
| Paid in capital | $ | 1,196,283,761 | $ | 1,069,202,673 | $ | 727,365,353 | $ | 234,530,803 | ||||||||
| Total distributable earnings (losses) | 77,854,342 | (276,820,360 | ) | (30,113,173 | ) | 12,744,977 | ||||||||||
| Net Assets | $ | 1,274,138,103 | $ | 792,382,313 | $ | 697,252,180 | $ | 247,275,780 | ||||||||
| Total shares outstanding at end of year ($0 par value, unlimited shares authorized) | 56,505,615 | 31,010,997 | 44,126,940 | 19,522,710 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (Net assets ÷ Total shares of beneficial interest outstanding) | $ | 22.55 | $ | 25.55 | $ | 15.80 | $ | 12.67 |
See Notes to Financial Statements.
/ 9
Statements of Operations (Unaudited)
For the Six Months Ended June 30, 2024
|
Partners Fund |
Small-Cap Fund |
International Fund |
Global Fund |
|||||||||||||
| Investment Income: | ||||||||||||||||
| Dividends from non-affiliates (net foreign tax withheld of $113,250, $43,064, $582,201 and $51,362, respectively) | $ | 7,726,245 | $ | 3,311,294 | $ | 5,524,668 | $ | 1,179,919 | ||||||||
| Dividends from affiliates | - | 1,864,300 | - | - | ||||||||||||
| Interest from non-affiliates | 4,834,000 | 2,923,235 | 929,362 | 342,980 | ||||||||||||
| Total Investment Income | 12,560,245 | 8,098,829 | 6,454,030 | 1,522,899 | ||||||||||||
| Expenses: | ||||||||||||||||
| Investment Counsel fee | 5,464,512 | 3,644,302 | 3,763,155 | 1,417,697 | ||||||||||||
| Administration fees | 510,488 | 322,990 | 276,385 | 96,102 | ||||||||||||
| Transfer agent fees and expenses | 462,459 | 180,209 | 164,099 | 31,626 | ||||||||||||
| Trustees' fees and expenses | 99,033 | 61,838 | 53,004 | 18,599 | ||||||||||||
| Custodian fees | 19,692 | 21,481 | 89,507 | 17,902 | ||||||||||||
| Other | 231,216 | 242,392 | 141,594 | 69,511 | ||||||||||||
| Total Expenses | 6,787,400 | 4,473,212 | 4,487,744 | 1,651,437 | ||||||||||||
| Expenses waived | (1,555,261 | ) | (487,251 | ) | (677,990 | ) | (328,283 | ) | ||||||||
| Net Expenses | 5,232,139 | 3,985,961 | 3,809,754 | 1,323,154 | ||||||||||||
| Net Investment Income | 7,328,106 | 4,112,868 | 2,644,276 | 199,745 | ||||||||||||
| Realized and Unrealized Gain (Loss): | ||||||||||||||||
| Net realized gain: | ||||||||||||||||
| Non-affiliated securities | 77,074,062 | 86,242,888 | 3,572,843 | 17,799,626 | ||||||||||||
| Affiliated securities | - | 125,082 | - | - | ||||||||||||
| Foreign currency transactions | - | 33,482 | 125,664 | 44,725 | ||||||||||||
| Net Realized Gain | 77,074,062 | 86,401,452 | 3,698,507 | 17,844,351 | ||||||||||||
| Change in unrealized appreciation (depreciation): | ||||||||||||||||
| Non-affiliated securities | (85,116,720 | ) | (49,165,026 | ) | (10,873,809 | ) | (10,147,190 | ) | ||||||||
| Affiliated securities | - | (20,554,314 | ) | - | - | |||||||||||
| Foreign currency transactions | - | (17,344 | ) | (186,881 | ) | (108 | ) | |||||||||
| Net Change in Unrealized Appreciation (Depreciation) | (85,116,720 | ) | (69,736,684 | ) | (11,060,690 | ) | (10,147,298 | ) | ||||||||
| Net Realized and Unrealized Gain (Loss) | (8,042,658 | ) | 16,664,768 | (7,362,183 | ) | 7,697,053 | ||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (714,552 | ) | $ | 20,777,636 | $ | (4,717,907 | ) | $ | 7,896,798 |
See Notes to Financial Statements.
/ 10
Statements of Changes in Net Assets
| Partners Fund | Small-Cap Fund | |||||||||||||||
|
|
Six Months Ended June 30, 2024 |
Year Ended December 31, |
Six Months Ended June 30, 2024 |
Year Ended December 31, |
||||||||||||
| (Unaudited) | 2023 | (Unaudited) | 2023 | |||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 7,328,106 | $ | 9,096,616 | $ | 4,112,868 | $ | 4,897,186 | ||||||||
| Net realized gain (loss) from investments and foreign currency transactions | 77,074,062 | (31,221,717 | ) | 86,401,452 | (129,402,387 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) from investments and foreign currency transactions | (85,116,720 | ) | 310,608,765 | (69,736,684 | ) | 294,730,846 | ||||||||||
| Net increase (decrease) in net assets resulting from operations | (714,552 | ) | 288,483,664 | 20,777,636 | 170,225,645 | |||||||||||
| Distributions to Shareholders: | ||||||||||||||||
| Total distributions | - | (9,119,995 | ) | - | (8,000,969 | ) | ||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Net proceeds from sale of shares | 2,470,050 | 9,168,107 | 4,673,818 | 46,947,727 | ||||||||||||
| Reinvestment of shareholder distributions | - | 8,236,215 | - | 7,080,200 | ||||||||||||
| Cost of shares redeemed | (96,631,332 | ) | (163,543,022 | ) | (86,586,782 | ) | (541,779,007 | ) | ||||||||
| Net decrease in net assets from capital share transactions | (94,161,282 | ) | (146,138,700 | ) | (81,912,964 | ) | (487,751,080 | ) | ||||||||
| Total increase (decrease) in net assets | (94,875,834 | ) | 133,224,969 | (61,135,328 | ) | (325,526,404 | ) | |||||||||
| Net Assets: | ||||||||||||||||
| Beginning of year or period | 1,369,013,937 | 1,235,788,968 | 853,517,641 | 1,179,044,045 | ||||||||||||
| End of year or period | $ | 1,274,138,103 | $ | 1,369,013,937 | $ | 792,382,313 | $ | 853,517,641 | ||||||||
| Capital Share Transactions: | ||||||||||||||||
| Issued | 108,787 | 442,372 | 180,642 | 2,075,815 | ||||||||||||
| Reinvested | - | 368,347 | - | 287,462 | ||||||||||||
| Redeemed | (4,226,838 | ) | (7,881,033 | ) | (3,347,542 | ) | (24,381,713 | ) | ||||||||
| Net decrease in shares outstanding | (4,118,051 | ) | (7,070,314 | ) | (3,166,900 | ) | (22,018,436 | ) |
See Notes to Financial Statements.
/ 11
| International Fund | Global Fund | |||||||||||||||
|
Six Months Ended June 30, 2024 (Unaudited) |
Year Ended December 31, 2023 |
Six Months Ended June 30, 2024 (Unaudited) |
Year Ended December 31, 2023 |
|||||||||||||
| Operations: | ||||||||||||||||
| Net investment income (loss) | $ | 2,644,276 | $ | 11,430,813 | $ | 199,745 | $ | (119,037 | ) | |||||||
| Net realized gain (loss) from investments and foreign currency transactions | 3,698,507 | 28,438,425 | 17,844,351 | (6,372,342 | ) | |||||||||||
| Net change in unrealized appreciation (depreciation) from investments and foreign currency transactions | (11,060,690 | ) | 76,202,893 | (10,147,298 | ) | 55,431,538 | ||||||||||
| Net increase (decrease) in net assets resulting from operations | (4,717,907 | ) | 116,072,131 | 7,896,798 | 48,940,159 | |||||||||||
| Distributions to Shareholders: | ||||||||||||||||
| Total distributions | - | (13,805,104 | ) | - | (357,973 | ) | ||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Net proceeds from sale of shares | 18,385,268 | 40,557,181 | 506,211 | 2,490,946 | ||||||||||||
| Reinvestment of shareholder distributions | - | 10,284,540 | - | 329,751 | ||||||||||||
| Cost of shares redeemed | (38,653,947 | ) | (123,596,162 | ) | (15,128,091 | ) | (22,800,794 | ) | ||||||||
| Net decrease in net assets from capital share transactions | (20,268,679 | ) | (72,754,441 | ) | (14,621,880 | ) | (19,980,097 | ) | ||||||||
| Total increase (decrease) in net assets | (24,986,586 | ) | 29,512,586 | (6,725,082 | ) | 28,602,089 | ||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of year or period | 722,238,766 | 692,726,180 | 254,000,862 | 225,398,773 | ||||||||||||
| End of year or period | $ | 697,252,180 | $ | 722,238,766 | $ | 247,275,780 | $ | 254,000,862 | ||||||||
| Capital Share Transactions: | ||||||||||||||||
| Issued | 1,150,880 | 2,630,438 | 39,586 | 214,949 | ||||||||||||
| Reinvested | - | 646,826 | - | 26,787 | ||||||||||||
| Redeemed | (2,379,224 | ) | (8,050,292 | ) | (1,205,959 | ) | (2,007,698 | ) | ||||||||
| Net decrease in shares outstanding | (1,228,344 | ) | (4,773,028 | ) | (1,166,373 | ) | (1,765,962 | ) |
See Notes to Financial Statements.
/ 12
Notes to Financial Statements (Unaudited)
Note 1. Organization
Longleaf Partners Fund, Longleaf Partners Small-Cap Fund, Longleaf Partners International Fund, and Longleaf Partners Global Fund (the "Funds") are non-diversified and each is a series of Longleaf Partners Funds Trust, a Massachusetts business trust, which is registered as an open-end management investment company under the Investment Company Act of 1940 ("1940 Act"), as amended.
Note 2. Significant Accounting Policies
The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 946.
Management Estimates
The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"); these principles may require the use of estimates by Fund management. Actual results could differ from those estimates.
Security Valuation
The following is a description of the valuation techniques applied to the Funds' investments (see also Note 7. Fair Value Measurements).
Portfolio securities listed or traded on a securities exchange (U.S. or foreign), on the NASDAQ national market, or any representative quotation system providing same day publication of actual prices, are valued at the last sale price, and categorized as Level 1 of the fair value hierarchy. If there are no transactions in the security that day, securities are valued at the midpoint between the closing bid and ask prices or, if there are no such prices, the prior day's close, and categorized as Level 2.
In the case of bonds and other fixed income securities, valuations are furnished by a pricing service which takes into account factors in addition to quoted prices (such as trading characteristics, yield, quality, coupon rate, maturity, type of issue, and other market data relating to the priced security or other similar securities) where taking such factors into account would lead to a more accurate reflection of the fair market value of such securities. Such securities are categorized as Level 2.
When market quotations are not readily available, valuations of portfolio securities are determined by Southeastern Asset Management, Inc. ("Southeastern") in accordance with procedures adopted by and under the general supervision of the Funds' Board of Trustees (the "Board"). In determining fair value, Southeastern considers relevant qualitative and quantitative information including news regarding significant market or security specific events. Southeastern may also utilize a service provided by an independent third party to assist in fair valuation of certain securities. These factors are subject to change over time and are reviewed periodically. Because the utilization of fair value depends on market activity, the frequency with which fair valuation may be used cannot be predicted. Estimated values may differ from the values that would have been used had a ready market for the investment existed. Such securities are categorized as either Level 2 or 3.
Repurchase agreements are valued at cost which, combined with accrued interest, approximates market value. Short-term U.S. Government obligations purchased with a remaining maturity of more than 60 days are valued through pricing obtained through pricing services approved by the Funds' Board. Obligations purchased with a remaining maturity of 60 days or less or existing positions that have less than 60 days to maturity generally are valued at amortized cost, which approximates market value. However, if amortized cost is deemed not to reflect fair value, the securities are valued at prices furnished by dealers who make markets in such securities or by an independent pricing service. Such securities are categorized as Level 2.
The Funds determine net asset values ("NAVs") once a day, at the close of regular trading on the New York Stock Exchange ("Exchange") (usually at 4:00 p.m. Eastern time) on days the Exchange is open for business. The Exchange is closed for specified national holidays and on weekends. Foreign securities are generally priced at the latest market close in the foreign market, which may be at different times or days than the close of the Exchange. If country specific (i.e. natural disaster, economic or political developments), issuer specific (i.e. earnings report, merger announcement), or U.S. markets-specific (i.e. significant movement in U.S. markets that would likely affect the value of foreign securities) events occur which could materially affect the NAV between the close of
/ 13
the foreign market and normal pricing at the close of the Exchange, foreign securities may be fair valued by Southeastern in accordance with procedures adopted by and under the general supervision of the Board using observable data (i.e. trading in depository receipts) or using an external pricing service approved by the Board. The pricing service uses an automated system incorporating a model based on multiple parameters, including a security's local closing price, relevant general and sector indices, currency fluctuations, trading in depositary receipts and futures, if applicable, and/or research valuations by its staff, in determining what it believes is the fair value of the securities. Such securities are categorized as Level 2.
Security Transactions
For financial reporting purposes, the Funds record security transactions on trade date. Realized gains and losses on security transactions are determined using the specific identification method. Dividend income is recognized on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon after the ex-dividend date as the Fund is able to obtain information on the dividend. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount using the effective interest method. The Funds record distributions received from investments in Real Estate Investment Trusts ("REITs") and Master Limited Partnerships ("MLPs") in excess of income from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts once the issuers provide information about the actual composition of the distributions.
Distributions to Shareholders
Dividends from net investment income, if any, are declared and distributed to shareholders annually. Net realized capital gains from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Federal Income Taxes
The Funds' policy is to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income to shareholders. Accordingly, no federal income tax provision is required. Reclassifications are made within the Funds' capital accounts for permanent book and tax basis differences.
The Funds' tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after filing of the tax return but could be longer in certain circumstances. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years (tax years ended December 31, 2020 through 2023), and has concluded that no provision for federal income tax is required in the Funds' financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. The Funds did not incur any interest or penalties during the period.
Repurchase Agreements
The Funds may engage in repurchase agreement transactions. The Fixed Income Clearing Corporation ("FICC") sells U.S. government or agency securities to each Fund under agreements to repurchase these securities at a stated repurchase price including interest for the term of the agreement, which is usually overnight or over a weekend. Each Fund, through FICC, receives delivery of the underlying U.S. government or agency securities as collateral, whose market value is required to be at least equal to the repurchase price. If FICC becomes bankrupt, the Fund might be delayed, or may incur costs or possible losses of principal and income, in selling the collateral.
/ 14
Note 3. Investment Counsel Agreement and Other Transactions with Affiliates
Southeastern serves as Investment Counsel to the Funds and receives annual compensation, computed daily and paid monthly, in accordance with the following schedule:
| Partners Fund |
1.00% on first $400 million of average net assets 0.75% in excess of $400 million |
|
| Small-Cap Fund |
1.00% on first $400 million of average net assets |
|
| International Fund |
1.10% on first $500 million of average net assets 0.90% in excess of $500 million |
|
| Global Fund |
1.125% on first $500 million of average net assets 1.00% in excess of $500 million |
Investment Counsel fees payable at June 30, 2024 and Investment Counsel fees expense for the period ended June 30, 2024 are disclosed on the Statements of Assets and Liabilities and the Statements of Operations, respectively.
Southeastern has contractually committed to waive fees and/or reimburse expenses so that each Fund's annual operating expenses (excluding taxes, interest, brokerage fees, and extraordinary expenses) do not exceed the following:
| Partners Fund | 0.79 | % | ||
| Small-Cap Fund | 0.95 | |||
| International Fund | 1.05 | |||
| Global Fund | 1.05 |
Expenses waived and/or reimbursed for the period ended June 30, 2024, are disclosed on the Statements of Operations. The fee-waiver agreements are in effect through at least April 30, 2025. These agreements may not be terminated without Board approval.
Southeastern also serves as the Fund Administrator and in this capacity is responsible for managing, performing or supervising the administrative and business operations of the Funds. The Funds pay a fee as compensation for these services, accrued daily and paid monthly. Effective May 1, 2024, the fee is 0.03% per annum of average daily net assets. Prior to May 1, 2024, the fee was of 0.10% per annum of average daily net assets. Administration fee payable at June 30, 2024 and Administration fee expense for the period ended June 30, 2024 are disclosed in the Statements of Assets and Liabilities and Statements of Operations, respectively.
The Board supervises the business activities of the Trust. Each Trustee serves as a Trustee for the lifetime of the Trust or until resignation or removal. "Independent Trustees," meaning those Trustees who are not "interested persons", as defined in the 1940 Act, of the Trust, each receives annual compensation of $90,000 from the Trust, paid in four equal quarterly installments. In addition, the Trust reimburses Trustees for out-of-pocket expense incurred in conjunction with attendance at Board meetings. One Trustee of the Trust is an employee of Southeastern. Trustee fees and expenses for the period ended June 30, 2024 are disclosed in the Statements of Operations. There were no Trustee fees payable at June 30, 2024.
Note 4. Investment Transactions
Purchases and sales of investment securities for the period ended June 30, 2024 (excluding short-term and U.S. government obligations) are summarized below:
| Purchases | Sales | |||||||
| Partners Fund | $ | 137,250,408 | $ | 292,782,546 | ||||
| Small-Cap Fund | 123,308,113 | 173,694,269 | ||||||
| International Fund | 165,470,663 | 169,824,825 | ||||||
| Global Fund | 40,223,559 | 41,944,672 |
/ 15
Note 5. Related Ownership
At June 30, 2024, officers, employees of Southeastern and their families, Fund Trustees, the Southeastern retirement plan and other affiliates owned the following:
| % of Fund | ||||
| Partners Fund | 32 | %* | ||
| Small-Cap Fund | 17 | * | ||
| International Fund | 42 | * | ||
| Global Fund | 71 | * |
| * | A significant portion consists of a few shareholders whose redemptions could have a material impact on the fund. |
Note 6. Affiliated Issuers
Under Section 2(a)(3) of the 1940 Act, a portfolio company is defined as "affiliated" if a fund owns five percent or more of its voting stock during all or part of the period. Affiliated companies during the period ended June 30, 2024 were as follows:
|
Shares at 6/30/24 |
Value at 12/31/23 |
Purchases | Sales | Dividends |
Net Realized Gain (Loss) 1/1/24 to 6/30/24 |
Net Unrealized Appreciation (Depreciation) 1/1/24 to 6/30/24 |
Value at 6/30/24 |
|||||||||||||||||||||||||
| Small-Cap Fund | ||||||||||||||||||||||||||||||||
| Common Stocks | ||||||||||||||||||||||||||||||||
| Anywhere Real Estate, Inc.* (Real Estate Services) | 5,710,068 | $ | 46,308,651 | $ | - | $ | - | $ | - | $ | - | $ | (27,408,326 | ) | $ | 18,900,325 | ||||||||||||||||
| Westrock Coffee Company* (Beverages) | 4,990,822 | 53,411,532 | - | 2,529,822 | - | 125,082 | 49,317 | 51,056,109 | ||||||||||||||||||||||||
| Preferred Stock | ||||||||||||||||||||||||||||||||
| Eastman Kodak Company Convertible Preferred Stock - Series B 4.00%(a)(b) (Consumer Services) | 932,150 | 76,529,515 | - | - | 1,864,300 | - | 6,804,695 | 83,334,210 | ||||||||||||||||||||||||
| $ | 176,249,698 | $ | - | $ | 2,529,822 | $ | 1,864,300 | $ | 125,082 | $ | (20,554,314 | ) | $ | 153,290,644 |
| * | Non-income producing security. |
| (a) | Restricted security, see Portfolio of Investments for additional disclosures. |
| (b) | Investment categorized as Level 3 in fair value hierarchy. See Note 7. |
Note 7. Fair Value Measurements
FASB ASC 820 established a single definition of fair value for financial reporting, created a three-tier framework for measuring fair value based on inputs used to value the Funds' investments, and required additional disclosure about the use of fair value measurements. The hierarchy of inputs is summarized below.
| ● | Level 1 - quoted prices in active markets for identical investments |
| ● | Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| ● | Level 3 - significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments) |
Observable inputs are those based on market data obtained from sources independent of the Funds, and unobservable inputs reflect the Funds' own assumptions based on the best information available. The input levels are not necessarily an indication of risk or liquidity associated with investing in those securities.
/ 16
A summary of the inputs used in valuing the Funds' investments at June 30, 2024 follows:
| Level 1 | Level 2 | Level 3 | Total Value | |||||||||||||
| Partners Fund | ||||||||||||||||
| Common Stocks | $ | 1,029,068,353 | $ | - | $ | - | $ | 1,029,068,353 | ||||||||
| Short-Term Obligations | - | 246,542,000 | - | 246,542,000 | ||||||||||||
| $ | 1,029,068,353 | $ | 246,542,000 | $ | - | $ | 1,275,610,353 | |||||||||
| Small-Cap Fund | ||||||||||||||||
| Common Stocks | $ | 611,534,494 | $ | - | $ | - | $ | 611,534,494 | ||||||||
| Preferred Stock | - | - | 83,334,210 | 83,334,210 | ||||||||||||
| Short-Term Obligations | - | 98,913,000 | - | 98,913,000 | ||||||||||||
| $ | 611,534,494 | $ | 98,913,000 | $ | 83,334,210 | $ | 793,781,704 | |||||||||
| International Fund | ||||||||||||||||
| Common Stocks | $ | 194,075,594 | $ | 465,896,936 | $ | - | $ | 659,972,530 | ||||||||
| Short-Term Obligations | - | 31,706,000 | - | 31,706,000 | ||||||||||||
| $ | 194,075,594 | $ | 497,602,936 | $ | - | $ | 691,678,530 | |||||||||
| Global Fund | ||||||||||||||||
| Common Stocks | $ | 141,799,071 | $ | 97,763,477 | $ | - | $ | 239,562,548 | ||||||||
| Short-Term Obligations | - | 7,964,000 | - | 7,964,000 | ||||||||||||
| $ | 141,799,071 | $ | 105,727,477 | $ | - | $ | 247,526,548 |
The following table provides quantitative information related to the significant unobservable inputs used to determine the value of Level 3 assets and the sensitivity of the valuations to changes in those significant unobservable inputs. These securities were valued by a third party specialist utilizing the income approach, which includes an analysis of various factors and subjective assumptions, including the current common stock price of the issuer, expected period until exercise, expected volatility of the common stock, expected dividends, risk-free rate, credit quality of the issuer, and common stock borrow cost. Because a variety of factors and inputs, both observable and unobservable, are considered in determining fair values, the significant unobservable inputs presented below do not reflect all inputs significant to the fair value determination.
| Fund |
Investments in Securities |
Fair Value (000s) |
Valuation Technique |
Unobservable Input |
Value or Range of Input |
Impact to Valuation from an Increase in Input* |
|||||||||||||||
| Small-Cap Fund | Preferred Stock | $ | 83,334 | Binomial Lattice Pricing | Straight Debt Yield | 14.75 | % | Decrease | |||||||||||||
| Expected Volatility | 46 | % | Increase |
| * | Represents the directional change in the fair value that would result in an increase from the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these unobservable inputs in insolation could result in significantly higher or lower fair value. |
The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in determining fair value at June 30, 2024:
|
Small-Cap Fund |
||||
| Fair Value at December 31, 2023 | $ | 76,529,515 | ||
| Change in unrealized appreciation(a) | 6,804,695 | |||
| Fair Value at June 30, 2024 | $ | 83,334,210 |
| (a) | Statements of Operations location: Change in Unrealized Appreciation (Depreciation) Affiliated securities. The entire amount relates to assets held as of June 30, 2024. |
/ 17
Note 8. Federal Income Taxes
The tax basis unrealized appreciation (depreciation) and federal tax cost of investments held by each Fund as of June 30, 2024 were as follows:
|
Partners Fund |
Small-Cap Fund |
International Fund |
Global Fund |
|||||||||||||
| Gross unrealized appreciation | $ | 202,778,883 | $ | 166,154,322 | $ | 142,505,167 | $ | 47,638,248 | ||||||||
| Gross unrealized depreciation | (154,053,202 | ) | (65,335,585 | ) | (48,424,934 | ) | (35,293,612 | ) | ||||||||
| Net unrealized appreciation | $ | 48,725,681 | $ | 100,818,737 | $ | 94,080,233 | $ | 12,344,636 | ||||||||
| Cost for federal income tax purposes | $ | 1,226,884,672 | $ | 692,962,967 | $ | 597,598,297 | $ | 235,181,912 |
Note 9. Commitments and Contingencies
The Funds indemnify the Board for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
Note 10. Subsequent Events
The Funds evaluated events from the date of the financial statements through the date the financial statements were issued. There were no subsequent events requiring recognition or disclosure.
/ 18
Financial Highlights
The presentation is for a share outstanding throughout each period.
| Partners Fund | ||||||||||||||||||||||||
|
Six Months
Ended |
Year Ended December 31, | |||||||||||||||||||||||
| (Unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||
| Net Asset Value Beginning of Period | $ | 22.58 | $ | 18.26 | $ | 24.81 | $ | 21.73 | $ | 20.30 | $ | 18.35 | ||||||||||||
| Net Investment Income(a) | 0.13 | 0.14 | 0.18 | 0.22 | 0.23 | 0.38 | ||||||||||||||||||
| Net Realized and Unrealized Gain (Loss) | (0.16 | ) | 4.33 | (5.91 | ) | 4.79 | 1.90 | 2.33 | ||||||||||||||||
| Total from Investment Operations | (0.03 | ) | 4.47 | (5.73 | ) | 5.01 | 2.13 | 2.71 | ||||||||||||||||
| Distributions from Net Investment Income | - | (0.15 | ) | (0.20 | ) | (0.23 | ) | (0.23 | ) | (0.42 | ) | |||||||||||||
| Distributions from Net Realized Capital Gains | - | - | (0.62 | ) | (1.70 | ) | (0.47 | ) | (0.34 | ) | ||||||||||||||
| Total Distributions | - | (0.15 | ) | (0.82 | ) | (1.93 | ) | (0.70 | ) | (0.76 | ) | |||||||||||||
| Net Asset Value End of Period | $ | 22.55 | $ | 22.58 | $ | 18.26 | $ | 24.81 | $ | 21.73 | $ | 20.30 | ||||||||||||
| Total return | (0.13 | )%(d) | 24.49 | % | (23.25 | )% | 23.58 | % | 10.53 | % | (14.81 | )% | ||||||||||||
| Net Assets End of Period (thousands) | $ | 1,274,138 | $ | 1,369,014 | $ | 1,235,789 | $ | 1,802,205 | $ | 1,655,311 | $ | 1,797,792 | ||||||||||||
| Ratio of Expenses to Average Net Assets(c) | 0.79 | %(e) | 0.79 | % | 0.79 | % | 0.79 | % | 0.79 | % | 0.93 | % | ||||||||||||
| Ratio of Net Investment Income to Average Net Assets | 1.11 | %(e) | 0.68 | % | 0.82 | % | 0.86 | % | 1.23 | % | 1.92 | % | ||||||||||||
| Portfolio Turnover Rate | 12 | %(d) | 43 | % | 39 | % | 35 | % | 37 | % | 6 | % |
| Small-Cap Fund | ||||||||||||||||||||||||
|
Six Months Ended June 30, 2024 |
Year Ended December 31, | |||||||||||||||||||||||
| (Unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||
| Net Asset Value Beginning of Period | $ | 24.97 | $ | 20.98 | $ | 26.30 | $ | 23.85 | $ | 24.27 | $ | 22.10 | ||||||||||||
| Net Investment Income(a) | 0.13 | 0.11 | 0.20 | 0.16 | 0.18 | 0.51 | ||||||||||||||||||
| Net Realized and Unrealized Gain (Loss) | 0.45 | 4.11 | (5.27 | ) | 2.51 | 0.79 | (b) | 3.78 | ||||||||||||||||
| Total from Investment Operations | 0.58 | 4.22 | (5.07 | ) | 2.67 | 0.97 | 4.29 | |||||||||||||||||
| Distributions from Net Investment Income | - | (0.23 | ) | (0.25 | ) | (0.22 | ) | (0.55 | ) | (0.62 | ) | |||||||||||||
| Distributions from Net Realized Capital Gains | - | - | - | - | (0.82 | ) | (1.50 | ) | ||||||||||||||||
| Return of Capital | - | - | - | - | (0.02 | ) | - | |||||||||||||||||
| Total Distributions | - | (0.23 | ) | (0.25 | ) | (0.22 | ) | (1.39 | ) | (2.12 | ) | |||||||||||||
| Net Asset Value End of Period | $ | 25.55 | $ | 24.97 | $ | 20.98 | $ | 26.30 | $ | 23.85 | $ | 24.27 | ||||||||||||
| Total return | 2.32 | %(d) | 20.15 | % | (19.27 | )% | 11.18 | % | 4.14 | % | 19.65 | % | ||||||||||||
| Net Assets End of Period (thousands) | $ | 792,382 | $ | 853,518 | $ | 1,179,044 | $ | 1,829,722 | $ | 1,836,719 | $ | 3,324,987 | ||||||||||||
| Ratio of Expenses to Average Net Assets | 0.95 | %(c)(e) | 0.95 | %(c) | 0.95 | %(c) | 0.96 | %(c) | 0.96 | % | 0.93 | % | ||||||||||||
| Ratio of Net Investment Income to Average Net Assets | 0.98 | %(e) | 0.50 | % | 0.84 | % | 0.61 | % | 0.89 | % | 2.10 | % | ||||||||||||
| Portfolio Turnover Rate | 17 | %(d) | 24 | % | 18 | % | 33 | % | 33 | % | 22 | % |
| (a) | Computed using average shares outstanding throughout the period. |
| (b) | Due to the timing of sales and redemptions of capital shares, the net realized and unrealized gain (loss) per share will not equal the Fund's changes in the net realized and unrealized gain (loss) on investments for the period. |
| (c) | Expenses presented net of fee waiver. The Partners Fund expense ratio before waiver for the periods ended June 30, 2024 and December 31, 2023, 2022, 2021, 2020, and 2019 were 1.02%, 1.05%, 1.03%, 1.00%, 1.03%, and 1.00%, respectively. The Small-Cap Fund expense ratio before waiver for the periods ended June 30, 2024 and December 31, 2023, 2022, and 2021 were 1.07%, 1.07%, 1.01%, and 0.97%, respectively. |
| (d) | Not annualized. |
| (e) | Annualized. |
/ 19
| International Fund | ||||||||||||||||||||||||
|
Six Months Ended June 30, 2024 |
Year Ended December 31, | |||||||||||||||||||||||
| (Unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||
| Net Asset Value Beginning of Period | $ | 15.92 | $ | 13.82 | $ | 17.11 | $ | 17.38 | $ | 17.68 | $ | 15.26 | ||||||||||||
| Net Investment Income(a) | 0.06 | 0.24 | 0.08 | 0.09 | 0.07 | 0.14 | ||||||||||||||||||
| Net Realized and Unrealized Gain (Loss) | (0.18 | ) | 2.17 | (3.28 | ) | (0.24 | ) | (0.29 | ) | 2.89 | ||||||||||||||
| Total from Investment Operations | (0.12 | ) | 2.41 | (3.20 | ) | (0.15 | ) | (0.22 | ) | 3.03 | ||||||||||||||
| Distributions from Net Investment Income | - | (0.31 | ) | (0.09 | ) | (0.12 | ) | (0.08 | ) | (0.14 | ) | |||||||||||||
| Distributions from Net Realized Capital Gains | - | - | - | - | - | (0.47 | ) | |||||||||||||||||
| Total Distributions | - | (0.31 | ) | (0.09 | ) | (0.12 | ) | (0.08 | ) | (0.61 | ) | |||||||||||||
| Net Asset Value End of Period | $ | 15.80 | $ | 15.92 | $ | 13.82 | $ | 17.11 | $ | 17.38 | $ | 17.68 | ||||||||||||
| Total return | (0.75 | )%(c) | 17.42 | % | (18.69 | )% | (0.89 | )% | (1.22 | )% | 20.00 | % | ||||||||||||
| Net Assets End of Period (thousands) | $ | 697,252 | $ | 722,239 | $ | 692,726 | $ | 1,280,072 | $ | 1,166,163 | $ | 1,348,777 | ||||||||||||
| Ratio of Expenses to Average Net Assets(b) | 1.05 | %(d) | 1.13 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||
| Ratio of Net Investment Income to Average Net Assets | 0.73 | %(d) | 1.56 | % | (0.56 | )% | 0.47 | % | (0.46 | )% | 0.82 | % | ||||||||||||
| Portfolio Turnover Rate | 24 | %(c) | 26 | % | 27 | % | 27 | % | 28 | % | 23 | % |
| Global Fund | ||||||||||||||||||||||||
|
Six Months Ended June 30, 2024 |
Year Ended December 31, | |||||||||||||||||||||||
| (Unaudited) | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||
| Net Asset Value Beginning of Period | $ | 12.28 | $ | 10.04 | $ | 13.34 | $ | 13.26 | $ | 13.19 | $ | 11.25 | ||||||||||||
| Net Investment Income (Loss)(a) | 0.01 | (0.01 | ) | 0.04 | 0.09 | 0.08 | 0.12 | |||||||||||||||||
| Net Realized and Unrealized Gain (Loss) | 0.38 | 2.27 | (3.25 | ) | 0.94 | 0.39 | 2.17 | |||||||||||||||||
| Total from Investment Operations | 0.39 | 2.26 | (3.21 | ) | 1.03 | 0.47 | 2.29 | |||||||||||||||||
| Distributions from Net Investment Income | - | (0.02 | ) | (0.01 | ) | (0.07 | ) | (0.07 | ) | (0.13 | ) | |||||||||||||
| Distributions from Net Realized Capital Gains | - | - | (0.08 | ) | (0.88 | ) | (0.33 | ) | (0.22 | ) | ||||||||||||||
| Total Distributions | - | (0.02 | ) | (0.09 | ) | (0.95 | ) | (0.40 | ) | (0.35 | ) | |||||||||||||
| Net Asset Value End of Period | $ | 12.67 | $ | 12.28 | $ | 10.04 | $ | 13.34 | $ | 13.26 | $ | 13.19 | ||||||||||||
| Total return (2) | 3.18 | %(c) | 22.48 | % | (24.15 | )% | 8.20 | % | 3.57 | % | 20.38 | % | ||||||||||||
| Net Assets End of Period (thousands) | $ | 247,276 | $ | 254,001 | $ | 225,399 | $ | 343,327 | $ | 342,621 | $ | 288,637 | ||||||||||||
| Ratio of Expenses to Average Net Assets(b) | 1.05 | %(d) | 1.13 | % | 1.15 | % | 1.15 | % | 1.19 | % | 1.20 | % | ||||||||||||
| Ratio of Net Investment Income (Loss) to Average Net Assets | 0.16 | %(d) | (0.05 | )% | 0.33 | % | 0.59 | % | 0.72 | % | 0.95 | % | ||||||||||||
| Portfolio Turnover Rate | 17 | %(c) | 43 | % | 33 | % | 48 | % | 36 | % | 37 | % |
| (a) | Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the year/period. |
| (b) | Expenses presented net of fee waiver. The International Fund expense ratio before waiver for the periods ended June 30, 2024 and December 31, 2023, 2022, 2021, 2020, and 2019 were 1.24%, 1.27%, 1.26%, 1.17%, 1.20%, and 1.17%, respectively. The Global Fund expense ratio before waiver for the periods ended June 30, 2024 and December 31, 2023, 2022, and 2021 were 1.31%, 1.35%, 1.33%, 1.31%, 1.33%, and 1.32%, respectively. |
| (c) | Not annualized. |
| (d) | Annualized. |
/ 20
Fund Information
The following additional information may be obtained for free by calling (800) 445-9469, visiting southeasternasset.com, or on the SEC's website at sec.gov.
Proxy Voting Policies and Procedures
A description of Longleaf's Proxy Voting Policies and Procedures is included in the Statement of Additional Information (SAI).
Proxy Voting Record
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is contained in Form N-PX.
Quarterly Portfolio Holdings
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit on Form N-PORT. The Funds' Form N-PORTs are available on the SEC's website at www.sec.gov. The exhibits for the most recent 1st and 3rd quarters are also available at www.southeasternasset.com.
Fund Trustees
Additional information about Fund Trustees is included in the SAI.
| Our Governing Principles | |
| We will treat your investment as if it were our own. | |
| We will remain significant investors in Longleaf Partners Funds. | |
| We will invest for the long term, while striving to maximize returns and minimize business, financial, purchasing power, regulatory and market risks. | |
| We will choose each equity investment based on its discount from our appraisal of corporate intrinsic value, its financial strength, its management, its competitive position, and our assessment of its future earnings potential. | |
| We will focus our assets in our best ideas. | |
| We will not impose loads or 12b-1 charges on mutual fund shareholders. | |
| We will consider closing to new investors if closing would benefit existing clients. | |
| We will discourage short-term speculators and market timers. | |
| We will continue our efforts to enhance shareholder services. | |
| We will communicate with our investment partners as candidly as possible. |
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Included under Item 7
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable
Item 15. Submission of Matters to a Vote of Security Holders.
None
Item 16. Controls and Procedures
| (a) | The registrant's Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of this report on Form N-CSR. |
| (b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable
Item 18. Recovery of Erroneously Awarded Compensation.
| (a) | Not applicable |
| (b) | Not applicable |
Item 19. Exhibits.
| (a)(1) | Not applicable. |
| (a)(2) | Not applicable |
| (a)(3) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto. |
| (a)(4) | Not applicable |
| (b) | Certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)): Attached hereto |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | Longleaf Partners Funds Trust |
By (Signature and Title)
| /s/ O. Mason Hawkins |
O. Mason Hawkins
Trustee
Longleaf Partners Funds Trust
| Date | 9/6/2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
| /s/ Ross Glotzbach |
Ross Glotzbach
CEO, Southeastern Asset Management, Inc.
Functioning as principal executive officer under agreements with
Longleaf Partners Funds Trust and its separate series
| Date | 9/6/2024 |
By (Signature and Title)
| /s/ Ryan S. Hocker |
Ryan S. Hocker
Global Funds Treasurer, Southeastern Asset Management, Inc.
Functioning as principal financial officer under agreements with
Longleaf Partners Funds Trust and its separate series
| Date | 9/6/2024 |