Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -5.14% in the first quarter, compared to the S&P 500’s -4.27% return and Russell 1000 Value’s 2.14% return. The firm’s stock price performance was volatile, but its confidence in future returns grew as the quarter progressed. The firm invested in quality companies that it thinks are strong and resilient to difficult circumstances. The portfolio has significantly outperformed the index, demonstrating this resiliency since the market peak on February 19th. The rise of its underlying value per share outpaced the performance of the stock price during the quarter. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as Albertsons Companies, Inc. (NYSE:ACI). Albertsons Companies, Inc. (NYSE:ACI) is a US-based food and drug store. The one-month return of Albertsons Companies, Inc. (NYSE:ACI) was 2.07%, and its shares gained 6.11% of their value over the last 52 weeks. On April 17, 2025, Albertsons Companies, Inc. (NYSE:ACI) stock closed at $21.71 per share with a market capitalization of $12.578 billion.
Longleaf Partners Fund stated the following regarding Albertsons Companies, Inc. (NYSE:ACI) in its Q1 2025 investor letter:
“Albertsons Companies, Inc. (NYSE:ACI) – US grocery retailer Albertsons was a contributor for the quarter. Albertsons was a new purchase in 2024, after we had followed the company and its predecessors for years. In an otherwise turbulent quarter, Albertsons stands out as a stable business that remains undervalued because it had fallen off the radar during a protracted deal process with Kroger that ultimately failed. The company should grow at a moderate pace and has plenty of financial firepower to repurchase shares, all while it has multiple strategic options (such as unlocking its real estate value and/or selling non-core markets) to realize value per share.”
Albertsons Companies, Inc. (NYSE:ACI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Albertsons Companies, Inc. (NYSE:ACI) at the end of the fourth quarter which was 58 in the previous quarter. While we acknowledge the potential of Albertsons Companies, Inc. (NYSE:ACI) 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.
