In the first quarter of 2024, the Longleaf Partners Fund returned 6.60%, surpassing the fund’s annual return target of inflation plus 10%. This positive performance was primarily driven by strong stock performance in the portfolio, despite headwinds faced by value investing strategies relative to growth strategies.
The fund’s overweight position in Communication Services, higher cash holdings, and lack of exposure to Information Technology contributed to its relative underperformance. However, the portfolio’s focus on companies with strong fundamentals and value creation, such as Fidelity National Information Services and CNX Resources, contributed to its positive return.