Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 11.67% up in the first quarter, compared to S&P’s return of 7.50% and Russell 1000 Value’s 1.01% return. The largest performance drivers of the fund in the quarter were the largest detractors from the prior years. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Longleaf Partners Fund highlighted stocks like Lumen Technologies, Inc. (NYSE:LUMN) in the first quarter 2023 investor letter. Headquartered in Monroe, Louisiana, Lumen Technologies, Inc. (NYSE:LUMN) is a technology and communications company that provides various integrated products and services. On April 25, 2023, Lumen Technologies, Inc. (NYSE:LUMN) stock closed at $2.3900 per share. One-month return of Lumen Technologies, Inc. (NYSE:LUMN) was -9.13%, and its shares lost 77.00% of their value over the last 52 weeks. Lumen Technologies, Inc. (NYSE:LUMN) has a market capitalization of $2.402 billion.
Longleaf Partners Fund made the following comment about Lumen Technologies, Inc. (NYSE:LUMN) in its Q1 2023 investor letter:
“Lumen Technologies, Inc. (NYSE:LUMN) – Global fiber company Lumen was the top detractor in the quarter on the back of disappointing guidance. Revenues remained weak, and the company surprised negatively by cutting guidance by an additional $500 million in the quarter. New CEO Kate Johnson reiterated the potential for strong enterprise sales improvement, but this will require further selling, general, and administrative (SG&A) investment. Additionally, the company is spending to accelerate the automation of its middle market business, while also running off its declining legacy business. We still believe the key to unlocking the price-to-value gap is a strategic sale or separation of the consumer business, but the current financial pressure likely extends that timeline. To the positive, Lumen retired over $600 million debt in an exchange of new senior debt to retire existing unsecured debt. We reduced our Lumen position in the quarter and remain actively engaged with management and the board.”
Photo by Taylor Vick on Unsplash
Lumen Technologies, Inc. (NYSE:LUMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Lumen Technologies, Inc. (NYSE:LUMN) at the end of the fourth quarter which was 34 in the previous quarter.
We discussed Lumen Technologies, Inc. (NYSE:LUMN) in another article and shared the list of cloud computing stocks under $5. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.