Money and Finance
- Chesapeake Documents Detail How Ceo Fuses Personal, Corporate Interests
(Reuters) - Aubrey K. McClendon, the chief executive officer of Chesapeake Energy Corp, has intertwined his personal and financial interests with those of the publicly traded company he runs to a far greater degree than shareholders may realize, according...
- Mason Hawkins And Staley Cates On Today’s Opportunities For Value Investors - By Robert Huebscher
Your shareholder letters often refer to the portfolio's discount to appraised value. Can you share with us some of the methodology you use to determine appraised value?[Hawkins:] Business appraisals are the core of our being. We have three methodologies...
- Longleaf Partners Funds Annual Presentation
Longleaf Partners Funds are pleased to make excerpts from our May 13, 2008 Annual Presentation available to all shareholders online via Windows Media Player. These recorded sessions will allow those shareholders not able to attend the meeting to hear...
- Longleaf Partners Funds 4th Quarter Letter
The fourth quarter volatility gave long-term investors terrific opportunities to pursue. Short-term, prices suffered, particularly in the two domestic funds. While negative performance is frustrating, falling prices are not necessarily worrisome. As patient,...
- Longleaf Partners Funds - Quarterly Report
Longleaf Partners Funds Q3 Report-Also: Longleaf Partners Fund November 9th letter to investors about adding additional funds to put $2 billion in new money to work. ...
Money and Finance
Two Celebrated Investors Want To Fix Their Funds--And Chesapeake Energy
Thanks to Matt for passing this along.
Nothing tests the mettle of a value investor like watching a large portfolio holding slowly and steadily meltdown. Yet that’s exactly what happened last spring to Mason Hawkins and his partner, Staley Cates, the veteran investment officers of Memphis’ Southeastern Asset Management. Chesapeake Energy, one of the biggest positions in their flagship mutual fund, Longleaf Partners, was hit by a barrage of negative publicity as its brash billionaire chief executive, Aubrey McClendon, came under fire for alleged self-dealing. This, after Hawkins and Cates had long defended McClendon and his aggressive spending on acquisitions. Short-sellers swarmed Chesapeake’s shares, which sank as much as 47% in less than two months.
Chesapeake’s shares have recovered somewhat, but they have dampened what would have otherwise been a great year for Longleaf Partners fund. In 2011 Chesapeake and other portfolio duds like Cemex and Bank of New York Mellon contributed to an embarrassing 2.9% loss for the fund, versus a 2.1% gain for the S&P 500.
Fact is, over the last decade you would have done better investing in a passively managed broad market index ETF than in either Southeastern’s Longleaf Partners or International fund.
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Related previous post: Cash Flow Analysis: A Private Lesson from Staley Cates
- Chesapeake Documents Detail How Ceo Fuses Personal, Corporate Interests
(Reuters) - Aubrey K. McClendon, the chief executive officer of Chesapeake Energy Corp, has intertwined his personal and financial interests with those of the publicly traded company he runs to a far greater degree than shareholders may realize, according...
- Mason Hawkins And Staley Cates On Today’s Opportunities For Value Investors - By Robert Huebscher
Your shareholder letters often refer to the portfolio's discount to appraised value. Can you share with us some of the methodology you use to determine appraised value?[Hawkins:] Business appraisals are the core of our being. We have three methodologies...
- Longleaf Partners Funds Annual Presentation
Longleaf Partners Funds are pleased to make excerpts from our May 13, 2008 Annual Presentation available to all shareholders online via Windows Media Player. These recorded sessions will allow those shareholders not able to attend the meeting to hear...
- Longleaf Partners Funds 4th Quarter Letter
The fourth quarter volatility gave long-term investors terrific opportunities to pursue. Short-term, prices suffered, particularly in the two domestic funds. While negative performance is frustrating, falling prices are not necessarily worrisome. As patient,...
- Longleaf Partners Funds - Quarterly Report
Longleaf Partners Funds Q3 Report-Also: Longleaf Partners Fund November 9th letter to investors about adding additional funds to put $2 billion in new money to work. ...