Commentary

Commentary

3Q16-Partners-Webcast-LLP

3Q16 Partners Webcast

The Longleaf Partners Funds are pleased to provide a replay of our 3Q16 Partners Webcast held on Thursday, November 17, 2016. The webcast includes comments from our global investment team and Q&A with investors.


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Chapters

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Title / Topics Speaker(s) Duration Slides / Visuals

Introduction

  • Disclosures
  • Agenda
  • Capital Gains Announcement
Gwin Myerberg 1:52   Introduction

Southeastern Progress Report

  • Our Principles of Investing
  • Our Global Research Team
  • Year-To-Date Performance
Mason Hawkins 4:08   Southeastern Progress Report

U.S. Investment Highlights

  • Overview
  • Is Stock Picking Dead?
  • Company Specifics Driving Returns
  • Current Position and Opportunity
Ross Glotzbach 4:50   US Investment Highlights

Asian Investment Highlights

  • Overview
  • Company Specifics Driving Returns
  • Hong Kong Real Estate
  • Current Position and Opportunity
Ken Siazon 9:27   Asian Investment Highlights

European Investment Highlights

  • Overview
  • Company Specifics Driving Returns
  • Current Position and Opportunity
Josh Shores 7:35   European Investment Highlights

Q & A: Investment Team

 

How, if at all, do you believe the Trump administration might impact our other businesses and generally our opportunity set?

Jim Thompson 1:44   Trump Impact

How does LafargeHolcim, a European cement company, qualify for the Partners Fund?

Lowry Howell 2:26   LafargeHolcim Qualifies

Please provide a general update on our Macau investments and our comfort with the exposure there.

Manish Sharma, Ross Glotzbach 2:30   Macau Investments

Please discuss what you like about Google and offer any thoughts about our alignment with the management given the A/B share structure?

Ross Glotzbach 2:40   Google

Mason, please provide an update on the current price to values in our portfolios.

Mason Hawkins 1:47   Upside In Portfolio

Ross, please outline the commodity price assumptions that we embed in our appraisals. Staley, can you provide an update on Chesapeake broadly and discuss the different securities and parts of the capital structure that we've invested in to express our views?

Ross Glotzbach, Staley Cates 5:47   Commodity Prices Chesapeake

Scott, please provide an outlook for OCI and its value growth opportunities?

Scott Cobb 2:49   OCI Outlook

What do you see as the greatest threats to our portfolio today?

Mason Hawkins 1:57   Threats to Portfolio

Manish, can you discuss Case New Holland?

Manish Sharma 2:40   Case New Holland

Staley, can you discuss FedEx? As a part of that conversation, touch on the perception of Amazon as a potential threat as well?

Staley Cates 3:32   FedEx Amazon

How do you determine whether an owner mentality is true versus just lip service?

Mason Hawkins, Ross Glotzbach 2:18   Lip Service

Please discuss how the impact of a higher interest rate environment, which seems to be more relevant now as the ten-year picks up, might impact our values.

Staley Cates, Mason Hawkins, Ken Siazon 4:00   Higher Interest Rate Environment

Conclusion

Mason Hawkins 1:16   Conclusion

Questions or Comments?

Please send us any additional questions or comments you may have.

Disclaimer

The statements and opinions expressed are those of the speaker and are as of the date of this report.

Information regarding portfolio holdings of the Longleaf Partners Funds can be found here:

Partners Fund
Small-Cap Fund
International Fund
Global Fund

Returns quoted reflect reinvested capital gains and dividends but not the deduction of taxes an investor would pay on distributions or share redemptions. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Longleaf Partners Funds may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained here.

Before investing in any Longleaf Partners fund, you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. For a current Prospectus and Summary Prospectus, which contain this and other important information, visit longleafpartners.com. Please read the Prospectus and Summary Prospectus carefully before investing.

The Longleaf Partners funds are subject to stock market risk, meaning stocks in the Fund may fluctuate in response to developments at individual companies or due to general market and economic conditions. Also, because the Funds generally invest in 15 to 25 companies, share value could fluctuate more than if a greater number of securities were held. Mid-cap stocks held by the Funds may be more volatile than those of larger companies. With respect to the Small-Cap Fund, smaller company stocks may be more volatile with less financial resources than those of larger companies. With respect to the International and Global Funds, investing in non-U.S. securities may entail risk due to non-US economic and political developments, exposure to non-US currencies, and different accounting and financial standards. These risks may be higher when investing in emerging markets. The total expense ratios for the Longleaf Partners Funds are: Longleaf Partners Fund 0.93%, Longleaf Small-Cap Fund 0.91%, Longleaf Partners International Fund 1.28%, Longleaf Partners Global 1.54%. The Partners and Small-Cap Funds’ expense ratios are subject to a fee waiver to the extent a Fund’s normal annual operating expenses exceed 1.5% of average annual net assets. The Longleaf International Fund’s expense ratio is subject to a fee waiver to the extent the Fund’s normal annual operating expenses exceed 1.75% of average annual net assets. The Longleaf Global Fund’s expense ratio is subject to a fee waiver to the extent the Fund’s normal annual operating expenses exceed 1.65% of average annual net assets.

Please see the Disclosures in the November 17, 2016 webcast transcript for definitions of certain terms and acronyms used during the presentation.

Funds distributed by ALPS Distributors, Inc.

 

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Replay of the 3Q16 Partners Webcast

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