Soumya Eswaran
3 min read
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Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 1.50% in the first quarter, compared to the Russell 3000’s -4.72% return and the Russell 2000's -9.48% decline. The portfolio performed well in a difficult quarter for small-cap stocks. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks such as Graham Holdings Company (NYSE:GHC). Graham Holdings Company (NYSE:GHC) is a diversified holding company that engages in media, education, and healthcare businesses. The one-month return of Graham Holdings Company (NYSE:GHC) was 1.43%, and its shares gained 39.33% of their value over the last 52 weeks. On June 26, 2025, Graham Holdings Company (NYSE:GHC) stock closed at $966.28 per share, with a market capitalization of $4.213 billion.
Longleaf Partners Small-Cap Fund stated the following regarding Graham Holdings Company (NYSE:GHC) in its Q1 2025 investor letter:
"Graham Holdings Company (NYSE:GHC) – Diversified education, healthcare and media company Graham Holdings contributed for the quarter. The company reported a solid quarter of low-mid single-digit percentage value growth and continues to position itself well for tougher times with its net cash balance sheet. For a deeper dive into Graham, please listen to our podcast with CEO Tim O’Shaughnessy that we recorded in March."
A student in a classroom eagerly raising their hand, highlighting the quality of the company's test preparation services.
Graham Holdings Company (NYSE:GHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Graham Holdings Company (NYSE:GHC) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the potential of Graham Holdings Company (NYSE:GHC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Graham Holdings Company (NYSE:GHC) and shared the list of best low float stocks to invest in. Graham Holdings Company (NYSE:GHC) was a top contributor to Longleaf Partners Small-Cap Fund's performance over the past year. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of GHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
