Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Webcast
November 2015
1 Year
5 Year
-21.89%
-0.61
-8.84%
1.25
-17.15%
-8.66
-21.36%
-5.09
5.96%
13.34
12.66%
11.73
0.11%
3.98
na
na
10 Year
2.81%
6.80
8.05%
6.55
0.96%
2.97
na
na
Since Inception
9.96%
9.28
10.58%
9.16
6.63%
3.92
-0.68%
8.47
Returns 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 investors 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 by visiting longleafpartners.com
The total expense ratios for the Longleaf Partners Funds are: Longleaf Partners Fund 0.91%, Longleaf Small-Cap Fund
0.91%, Longleaf Partners International Fund 1.25%, Longleaf Partners Global 1.58%. The Partners and Small-Cap Funds
expense ratios are subject to a fee waiver to the extent a Funds normal annual operating expenses exceed 1.5% of average
annual net assets. The Longleaf International Funds expense ratio is subject to a fee waiver to the extent the Funds normal
annual operating expenses exceed 1.75% of average annual net assets. The Longleaf Global Funds expense ratio is subject
to a fee waiver to the extent the Funds normal annual operating expenses exceed 1.65% of average annual net assets.
Percent
11.9%
8.6%
7.5%
6.4%
6.4%
5.5%
5.1%
5.1%
5.0%
5.0%
International Fund
EXOR
adidas
LafargeHolcim
CK Hutchison
Melco International
K. Wah International
OCI
Cheung Kong Property
CEMEX
Philips
Percent
8.4%
8.3%
6.9%
6.9%
6.3%
5.7%
5.4%
5.1%
5.0%
4.9%
Global Fund
Level 3 Communications
EXOR
FedEx
CK Hutchison
LafargeHolcim
adidas
McDonald's
Philips
Google
Melco International
Percent
9.0%
7.1%
6.2%
6.0%
5.9%
5.8%
5.1%
5.1%
4.9%
4.4%
Fund holdings are subject to change and holding discussions are not recommendations to buy or sell any security. Current and
future holdings are subject to risk.
Earnings Per Share is the portion of a company's profit allocated to each outstanding share of stock.
EBITDA is a companys earnings before interest, taxes, depreciation and amortization.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows.
Free Cash Flow (FCF) is a measure of a companys ability to generate the cash flow necessary to maintain operations. Generally, it
is calculated as operating cash flow minus capital expenditures.
EV/EBITDA is a ratio comparing a companys enterprise value and its earnings before interest, taxes, depreciation and amortization
per share (EPS) is the portion of a company's net income allocated to each share of common stock.
CAGR is an acronym for Compounded Annual Growth Rate
G&A is an acronym for General & Administrative and are expenses pertaining to the operational expenses of a company
HKD is an acronym for Hong Kong Dollar at 11/13/15 the exchange rate was 7.7512 Hong Kong Dollars = 1 US Dollar
Agenda
Performance Perspective
Lee Harper
Q&A
Research Team
Chairman
Chief Executive Officer
Co-Portfolio Manager-All Funds
President
Chief Investment Officer
Co-Portfolio Manager-All Funds
Performance Perspective
Lee Harper
Head of Client Portfolio Management
4/8/87 to 10/31/15
Partners
Fund
1,533.31%
Partners Fund
Outperforms
S&P 500
1,258.93%
Partners Fund
Underperforms
Return Difference
>500 basis points
14 years
15 years
11 years
10 years
*Includes partial years of 1987 (initial public offering 4/8/87) and 2015 Year-to-Date (YTD) at 10/31/15
Average annual total returns for the Fund and its benchmark for the one, five, ten year and since 4/8/87 inception periods ended September 30, 2015
are as follows: Partners Fund: -21.89%, 5.96%, 2.81%, and 9.96%; S&P 500: -0.61%, 13.34%, 6.80%, and 9.28%Because S&P 500 was available only at
month-end in 1987, we used the value at 3/31/87 to calculate S&P 500 performance since inception. Returns 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 fund may be lower or higher than the performance quoted. Performance data current to the
most recent month end may be obtained by visiting longleafpartners.com. The total expense ratio for the Longleaf Partners Fund is 0.91%. The Partners
Funds expense ratios is subject to a fee waiver to the extent a Funds normal annual operating expenses exceed 1.5% of average annual net assets.
U.S. Small-Cap
Global
Non-U.S.
Returns 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 funds may be lower or
higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting longleafpartners.com.
Total Return
(in Local Currency)
Baidu
41.1%
DuPont
39.9%
DreamWorks Animation
33.1%
Melco International
24.6%
Actuant Corporation
23.2%
SoftBank
21.3%
adidas
19.1%
Wynn Resorts
18.0%
Alphabet (Google)
17.8%
DSM
16.1%
Philips
15.9%
15.5%
U.S.
Large-Cap
Asia Pacific
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
adidas
EXOR
Alphabet (Google) Organic revenue growth of mid-teens+% at Search and 30+% at YouTube
Level 3
DreamWorks
9/30/15
11/13/15
$45.09
$40.74
2.52
2.36
10%
6%
Acreage and producing assets still have value, even with spot prices at multi-year lows:
Antero Resources bought Utica acreage for $7,000/acre (above our model estimates)
Hess sold Utica acreage at $9,000+/acre
Encana sold Rockies and Haynesville producing assets above our carrying value for
CHKs assets in similar regions
Chesapeake Energy is operationally stronger
today with excellent cost performance:
CONSOL Energy
CONSOL Energys base plan, coupled with additional asset sales, will result in
significant flexibility, including the ability, if appropriate, to separate its coal
and E&P businesses by means of a spin transaction. CONSOL Q3 2015 Earnings Presentation
Per Share
Parameters
Low-end: Public comps1
High-end: Commodity rebound
E&P Division
$ 20 - 30
Coal Division
10
Other Pieces
5+
Closing Price:
(11/13/15)
Total Assets
Less: Net Debt
Value Range
$ 35 - 45
(15)
$ 20 - 30
1 Exploration & Production (E&P) public comps: Range Resources (RRC), EQT Corp (EQT), Antero Resources (AR) and Rice Energy (RICE)
$7.40
Wynn Resorts
Wynn Resorts is a conservatively managed casino operator with a highly
recognizable brand targeting affluent customers.
Strong Business
Las Vegas: Highest grossing properties in Las Vegas
Boston: Development moving forward
Macau: High barriers to entry
Good People
Steve Wynn, CEO
9.9% ownership
Generated ~25% total return CAGR* over 20+ years at Mirage
Generated ~15% total return CAGR over 10+ years at Wynn Resorts
12.5x EBITDA
$7.5 million/acre
NPV based on filings
Closing Price:
(11/13/15)
Macau Business
72% Wynn Macau Stock
Macau Fees
Total Macau Value
50
.32
Diluted
( !.#$ & '()*+, ./012
) Fully
WYNN Shares
$#.#$15
70+
Appraisal:
$62.20
$120+
Per Share
$ 25
Boston
15
12
19
$ 71
Closing Price:
(11/13/15)
$62.20
Q&A
U.S. Small-Cap
Global
At 9/30/15
Low-60s%
At 9/30/15
At 9/30/15
At 11/13/15
High-60s% At 11/13/15
Non-U.S.
Low-60s%
High-60s% At 11/13/15
Low-60s%
Mid-60s%
Asia Pacific
At 9/30/15
High-50s%
At 9/30/15
Mid-50s%
At 11/13/15
Mid-60s%
At 11/13/15
Low-60s%
Chairman
Chief Executive Officer
Co-Portfolio Manager-All Funds
Memphis, TN
Ross Glotzbach, CFA
President
Chief Investment Officer
Co-Portfolio Manager-All Funds
London
Scott Cobb
Head of Europe
Co-Portfolio Manager International Fund
Singapore
Ken Siazon
Head of Asia
Co-Portfolio Manager International Fund