longleaf partners webcast slides

7/24/2019 Longleaf Partners Webcast Slides

1/21

Southeastern Asset

Managem

Longleaf Partners Funds

November 2015 Webcast


2/21

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4/21

Longleaf US Fund Disclosures

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5/21

Performance Perspective Lee Harper Head of Client Portfolio M

Our Time-Tested Value Approach

Mason Hawkins, CChairmanChief Executive OfficerCo-Portfolio Manager-Al

Confident in Future Results Staley Cates, CFA President Chief Investment OfficerCo-Portfolio Manager-Al

Q&A Research Team

Agenda


6/21

Performance Perspective

Lee Harperc'.6 */ I-


7/21

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8/21

Our Time-Tested Value Approach

Mason Hawkins, CFA I&.


9/21

Performance Update Since 9/30/15Longleaf Partners Funds and Indices (9/30/15 to 11/13/15)

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10/21

Rapid Change in Market PerceptionMomentum can change quickly. Almost a third of our holdings have posteddouble-digit returns since September, and many are up over 15%.

Returns from 9/30/15 to 11/13/15

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11/21

Confident in Future Results

Staley Cates, CFA 01'3


12/21

Strong Execution at Overweight HoldingsOur confidence is based on the positive fundamentals, value growth andmanagement action at the companies we own.

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13/21

Status Report: Macau

h Traveled to Macau in October

h Visited all six gaming operators

h Met with various consultants,analysts, non-Macau competitors andco-investors

h Takeaway: Mass gaming hasstabilized

Mass vs. VIP Gross Gaming R

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14/21

Status Report: Energyh Spot prices are worse, not better:

h Acreage and producing assets still have value, even with spot prices at multi-year l! Antero Resources bought Utica acreage for $7,000/acre (above our model estim! Hess sold Utica acreage at $9,000+/acre!

Encana sold Rockies and Haynesville producing assets above our carrying valuCHKs assets in similar regions

h Chesapeake Energy is operationally strongertoday with excellent cost performance:

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Our appraisals reflect the redu futures strip pricing, and the disco

those conservative values remain


15/21

CONSOL Energy

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16/21

Wynn Resorts Wynn Resorts is a conservatively managed casino operator with a highlyrecognizable brand targeting affluent customers.

Strong Businessh Las Vegas: Highest grossing properties in Las Vegash Boston: Development moving forwardh Macau: High barriers to entry

Good Peopleh 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


17/21

Macau Business

Wynn Resorts: Valuation Scenario #1 At Wynns current stock price, investors are paying less than $13 per share >$70 of value in Macau.

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18/21

Wynn Resorts: Valuation Scenario #2The companys non-earning assets are worth more than the companys currestock price and are completely missed in earnings screens.

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Non-Earning Assets

We get current operating assets that produced ~$10/share oftrailing 12 month property-level EBITDA, net of debt against them,

for less-than-free

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19/21

Q & A


20/21

P/V (Price-To-Value) Ratios

U.S. Large-Cap

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21/21

Memphis, TN

Ross Glotzbach, CFA Deputy Director of ResearchCo-PortfolioManager Small-Cap Fund

Jim Thompson, CFA Senior Analyst

Lowry Howell, CFA Senior Analyst

Brandon Arrindell, CFA nalyst

Singapore

Ken Siazon Head of AsiaCo-Portfolio Manager Internatio

Manish Sharma, CFA Senior Analyst

London

Scott Cobb Head of EuropeCo-Portfolio Manager Internatio

Josh Shores, CFA Senior Analyst

Q&A with Our Global Research TeamMason Hawkins, CFA ChairmanChief Executive OfficerCo-Portfolio Manager-All Funds

Staley Cates, CFA President Chief Investment OfficerCo-Portfolio Manager-All Funds

longleaf partners webcast slides

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