Mason Hawkins - Southeastern Asset Management Inc/tn/ Portfolio Q2’2025: Top Holdings & Recent Changes
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Southeastern Asset Management, led by legendary value investor Mason Hawkins, continues to exemplify disciplined contrarian investing. Their Q2’2025 portfolio showcases a $1.98 billion allocation across 49 positions, with notable shifts in consumer, healthcare, and commodity sectors that reflect Hawkins’ commitment to deep value and long-term holding periods.
Portfolio Overview: Contrarian Value in Focus
Portfolio Highlights (Q2’2025): - Market Value: $1,983.6M - Top 10 Holdings: 49.9% - Portfolio Size: 49 +6 - Average Holding Period: 12 quarters - Turnover: 20.4%
The Southeastern Asset Management portfolio remains highly diversified, yet nearly half of its assets are concentrated in the top 10 holdings. This balance between conviction and diversification is a hallmark of Hawkins’ approach, allowing for significant upside while managing risk across sectors.
With an average holding period of 12 quarters, Hawkins demonstrates patience and a willingness to let deep value ideas play out. The 20.4% turnover this quarter signals selective repositioning rather than wholesale changes, consistent with a strategy that favors long-term compounding over short-term trading.
The addition of six new positions this quarter suggests a willingness to capitalize on market dislocations, while reductions in several core holdings reflect active risk management and a dynamic response to evolving fundamentals.
Top Holdings Analysis: Value Plays and Strategic Shifts
The portfolio’s top positions reveal a blend of established value plays and aggressive moves in select sectors. Notably, CNX Resources Corporation remains a core holding at 7.6%, though Hawkins trimmed the stake by 6.76%, possibly reflecting profit-taking or risk adjustment in the energy sector. Mattel, Inc. 7.2% saw a 5.58% increase, signaling renewed confidence in consumer cyclicals.
A standout move is the 19.36% addition to IAC InterActive Corp. 5.5%, indicating a bullish outlook on digital media and internet assets. Meanwhile, The Kraft Heinz Company 4.8% received a substantial 49.24% boost, underscoring Hawkins’ conviction in defensive consumer staples amid market uncertainty.
The most aggressive increase came in PVH Corp. 4.7%, with a 126.17% addition, suggesting Hawkins sees significant upside in apparel and retail. Healthcare exposure was also ramped up, with a 39.78% increase in Regeneron Pharmaceuticals, Inc. 4.3%.
On the reduction side, FedEx Corporation 4.3% was trimmed by 2.36%, and Fidelity National Information Services, Inc. 3.9% saw a significant 26.85% reduction, possibly reflecting sector headwinds or valuation concerns. Bio-Rad Laboratories, Inc. 3.8% and Albertsons Companies, Inc. 3.8% were also reduced, the latter by 31.69%, indicating a tactical retreat from grocery retail.
Supplementing these moves, the portfolio’s top 10 includes a mix of consumer, healthcare, and technology names, each representing a calculated bet on sector recovery or defensive resilience.
What the Portfolio Reveals About Current Strategy
- Quality over Growth: Hawkins continues to favor established, cash-generative businesses, even as he selectively adds to cyclical and growth-oriented names.
- Sector Rotation: Significant increases in consumer staples and healthcare suggest a defensive tilt, while reductions in energy and financials reflect caution amid sector volatility.
- Geographic Focus: The portfolio remains predominantly U.S.-centric, consistent with Hawkins’ preference for transparency and governance.
- Dividend and Value Orientation: Many top holdings offer attractive dividend yields and trade at below-market multiples, aligning with Southeastern’s deep value philosophy.
- Risk Management: Active trimming of positions in volatile sectors and selective additions to defensive names highlight a pragmatic approach to portfolio risk.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| CNX Resources Corporation | $150.3M | 7.6% | Reduce 6.76% |
| Mattel, Inc. | $142.4M | 7.2% | Add 5.58% |
| IAC InterActive Corp. | $109.4M | 5.5% | Add 19.36% |
| The Kraft Heinz Company | $94.9M | 4.8% | Add 49.24% |
| PVH Corp. | $94.0M | 4.7% | Add 126.17% |
| FedEx Corporation | $86.3M | 4.3% | Reduce 2.36% |
| Regeneron Pharmaceuticals, Inc. | $84.3M | 4.3% | Add 39.78% |
| Fidelity National Information Services, Inc. | $77.3M | 3.9% | Reduce 26.85% |
| Bio-Rad Laboratories, Inc. | $76.1M | 3.8% | Reduce 2.63% |
| Albertsons Companies, Inc. | $74.5M | 3.8% | Reduce 31.69% |
The top 10 holdings account for nearly half of the portfolio’s value, underscoring Hawkins’ willingness to concentrate capital in his highest-conviction ideas. Notably, the largest increases this quarter—PVH Corp., Kraft Heinz, and Regeneron—reflect a tactical pivot toward sectors with perceived upside or defensive characteristics. Conversely, reductions in CNX, FIS, and Albertsons suggest ongoing risk calibration and responsiveness to sector-specific developments.
This concentration strategy allows Southeastern to benefit disproportionately from successful investments while maintaining enough diversification to mitigate idiosyncratic risk.
Investment Lessons from Mason Hawkins
- Conviction Drives Results: Concentrated bets in undervalued sectors can yield outsized returns when paired with deep research and patience.
- Long-Term Holding Periods: Hawkins’ average holding period of 12 quarters demonstrates the power of compounding and the importance of letting value ideas mature.
- Dynamic Risk Management: Regular portfolio adjustments—both additions and reductions—reflect a disciplined approach to managing downside risk and capitalizing on new opportunities.
- Quality and Value Alignment: Investing in businesses with strong fundamentals and attractive valuations remains central to Southeastern’s philosophy.
- Sector Flexibility: Willingness to rotate between sectors as market conditions evolve is key to sustaining long-term performance.
Looking Ahead: What Comes Next?
With $1.98 billion deployed and a growing roster of positions, Southeastern Asset Management is well-positioned to capitalize on further market volatility. The recent additions to consumer staples, healthcare, and apparel signal confidence in sectors poised for recovery or resilience. Cash reserves and selective trimming of riskier holdings suggest Hawkins is preparing for both defensive positioning and opportunistic buying.
Investors should watch for continued moves in undervalued sectors, potential new positions in technology or commodities, and further refinements as macroeconomic conditions shift. The portfolio’s current setup offers flexibility to navigate both bull and bear scenarios, with a clear bias toward deep value and long-term growth.
FAQ about Southeastern Asset Management Portfolio
Q: Why did Mason Hawkins increase exposure to PVH Corp. and Kraft Heinz this quarter?
Hawkins added aggressively to PVH Corp. and Kraft Heinz due to perceived undervaluation and sector resilience, reflecting confidence in their recovery potential and defensive characteristics.
Q: How concentrated is the Southeastern Asset Management portfolio?
Nearly 50% of the portfolio is allocated to the top 10 holdings, demonstrating Hawkins’ conviction in his highest-quality ideas while maintaining diversification across 49 positions.
Q: What is the average holding period for Southeastern’s investments?
The average holding period is 12 quarters, highlighting a long-term approach and commitment to letting value investments compound.
Q: Which sectors saw the most significant changes this quarter?
Consumer staples, healthcare, and apparel saw the largest increases, while energy, financials, and grocery retail were trimmed, reflecting sector rotation and risk management.
Q: How can investors track Mason Hawkins’ moves?
Use ValueSense’s Southeastern Asset Management portfolio tracker for real-time updates and analysis. Note that 13F filings are reported with a 45-day lag, so recent moves may not be immediately reflected.
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