Longleaf Companions, managed by Southeastern Asset Management, launched its “Companions Fund” third-quarter 2025 investor letter. The letter might be downloaded here. The fund returned -0.33% within the third quarter, in comparison with the S&P 500’s 8.12 % return and the Russell 1000 Worth’s 5.33% return. The agency will not be proud of the flat efficiency of the portfolio, emphasizing its investments in actual belongings and types that generate rising free money circulate (FCF) per share. Regardless of going through market pressures from hypothesis and authorities uncertainty, it anticipates that the Fund’s ~10x FCF a number of might rise to the mid-teens as administration implements methods to enhance margins and enhance share repurchases. For extra info on the fund’s finest picks in 2025, please verify its prime 5 holdings.
In its third-quarter 2025 investor letter, Longleaf Companions Fund highlighted shares equivalent to Albertsons Corporations, Inc. (NYSE:ACI). Albertsons Corporations, Inc. (NYSE:ACI) is a US-based grocery store operator. The one-month return of Albertsons Corporations, Inc. (NYSE:ACI) was 7.72%, and its shares gained 2.74% of their worth during the last 52 weeks. On October 23, 2025, Albertsons Corporations, Inc. (NYSE:ACI) inventory closed at $19.06 per share, with a market capitalization of $10.385 billion.
Longleaf Companions Fund said the next concerning Albertsons Corporations, Inc. (NYSE:ACI) in its third quarter 2025 investor letter:
Albertsons Corporations, Inc. (NYSE:ACI) – We wrote about grocery store operator Albertsons earlier this yr as a contributor in harder inventory market occasions. We took some off the desk then however added again to our place within the third quarter on weak point. The inventory was down on a quarterly earnings report that didn’t excite the market however was inside our expectations. We had been additional happy to see significant share repurchase at a excessive single digit annualized tempo of shares excellent. Later within the quarter, Albertsons’ business was pressured by information of Amazon’s elevated efforts in groceries. Whereas we are going to by no means dismiss Amazon, we might additionally level out that this newest push is extra of an incremental, anticipated transfer than one thing just like the stunning acquisition of Entire Meals. This stays a aggressive business, however it is usually a steadily mandatory one wherein Albertsons has a robust place due to its nice actual property, model recognition and proprietor alignment. Our confidence was bolstered additional after quarter finish when the corporate reported one other stable set of outcomes and introduced a sizeable accelerated share repurchase, additional rising worth per share.
