Longleaf Companions, managed by Southeastern Asset Administration, launched its “Companions Fund” third-quarter 2025 investor letter. The letter will be downloaded right 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 is just not proud of the flat efficiency of the portfolio, emphasizing its investments in actual property and types that generate rising free money circulation (FCF) per share. Regardless of dealing with market pressures from hypothesis and authorities uncertainty, it anticipates that the Fund’s ~10x FCF a number of may rise to the mid-teens as administration implements methods to enhance margins and improve share repurchases. For extra data on the fund’s finest picks in 2025, please test its high 5 holdings.
In its third-quarter 2025 investor letter, Longleaf Companions Fund highlighted shares reminiscent of Albertsons Firms, Inc. (NYSE:ACI). Albertsons Firms, Inc. (NYSE:ACI) is a US-based grocery store operator. The one-month return of Albertsons Firms, Inc. (NYSE:ACI) was 7.72%, and its shares gained 2.74% of their worth over the past 52 weeks. On October 23, 2025, Albertsons Firms, Inc. (NYSE:ACI) inventory closed at $19.06 per share, with a market capitalization of $10.385 billion.
Longleaf Companions Fund acknowledged the next relating to Albertsons Firms, Inc. (NYSE:ACI) in its third quarter 2025 investor letter:
Albertsons Firms, Inc. (NYSE:ACI) – We wrote about grocery store operator Albertsons earlier this 12 months as a contributor in more durable 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 have been additional happy to see significant share repurchase at a excessive single digit annualized tempo of shares excellent. Later within the quarter, Albertsons’ trade was pressured by information of Amazon’s elevated efforts in groceries. Whereas we’ll by no means dismiss Amazon, we’d additionally level out that this newest push is extra of an incremental, anticipated transfer than one thing just like the stunning acquisition of Complete Meals. This stays a aggressive trade, however it’s also a steadily essential one wherein Albertsons has a powerful 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 strong set of outcomes and introduced a sizeable accelerated share repurchase, additional rising worth per share.
