Longleaf Partners, managed by Southeastern Asset Management, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund returned 3.35% in the quarter, compared to the S&P 500’s 2.66% and the Russell 1000 Value Index’s 3.81% return. 2025 was a challenging year for the firm, as it did not have any standout performers. Approximately 5% of the portfolio gained 20% or more, while 35% of the S&P 500 hit that level. The overall market dynamic drove the Fund’s underperformance. The firm focuses on actions to strengthen portfolio outcomes rather than chasing winners at the wrong time. The firm reiterates that building a portfolio of real companies on offense in a period of excessive speculation will benefit all markets. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as PVH Corp. (NYSE:PVH). Based in New York, New York, PVH Corp. (NYSE:PVH) is an apparel company. The one-month return of PVH Corp. (NYSE:PVH) was -8.46%, and its shares lost 30.34% of their value over the last 52 weeks. On January 16, 2026, PVH Corp. (NYSE:PVH) stock closed at $64.63 per share, with a market capitalization of $3.11 billion.
Longleaf Partners Fund stated the following regarding PVH Corp. (NYSE:PVH) in its fourth quarter 2025 investor letter:
“PVH Corp. (NYSE:PVH) – Branded apparel company PVH was a detractor for the quarter and the year. The company’s shares experienced considerable price fluctuations, while our appraisal stayed flattish, which was disappointing. This is a company that will likely always have more quarterly earnings volatility than others. The good news is that the long-run earnings per share power remains intact at over $10 per share. While CEO Stefan Larsson has a strong record turning around multiple brands, the turnaround has taken longer than expected. This is a company that is sensitive to consumer trends, but its brands resonate with a more price conscious buyer. PVH has numerous levers to pull to improve margins above the 10% level that the market doubts. PVH was one of our larger share repurchasers in 2025, and we believe this will continue at these prices in 2026.”
PVH Corp. (NYSE:PVH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 31 hedge fund portfolios held PVH Corp. (NYSE:PVH) at the end of the third quarter, compared to 33 in the previous quarter. While we acknowledge the potential of PVH Corp. (NYSE:PVH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
