Longleaf Partners Fund’s Updates on IAC (IAC)

2 hours ago 1

Soumya Eswaran

Tue, January 20, 2026 astatine 7:40 AM CST 4 min read

Longleaf Partners, managed by Southeastern Asset Management, released its fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Fund returned 3.35% successful the quarter, compared to the S&P 500’s 2.66% and the Russell 1000 Value Index’s 3.81% return. 2025 was a challenging twelvemonth for the firm, arsenic it did not person immoderate standout performers. Approximately 5% of the portfolio gained 20% oregon more, portion 35% of the S&P 500 deed that level. The wide marketplace dynamic drove the Fund’s underperformance. The steadfast focuses connected actions to fortify portfolio outcomes alternatively than chasing winners astatine the incorrect time. The steadfast reiterates that gathering a portfolio of existent companies connected discourtesy successful a play of excessive speculation volition payment each markets. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Longleaf Partners Fund highlighted stocks specified arsenic IAC Inc. (NASDAQ:IAC). IAC Inc. (NASDAQ:IAC) is simply a starring media and net company. The one-month instrumentality of IAC Inc. (NASDAQ:IAC) was -3.167%, and its shares gained 13.37% of their worth implicit the past 52 weeks. On January 16, 2026, IAC Inc. (NASDAQ:IAC) banal closed astatine $39.51 per share, with a marketplace capitalization of $3.167 billion.

Longleaf Partners Fund stated the pursuing regarding IAC Inc. (NASDAQ:IAC) successful its 4th fourth 2025 capitalist letter:

"IAC Inc. (NASDAQ:IAC), MGM Resorts and Angi – The related radical of IAC, MGM Resorts and Angi contributed powerfully successful aggregate this year. Digital holding institution IAC has signaled its plans to dispose of each assets too People Inc. and an approximate 25% involvement successful MGM. Chairman Barry Diller is focused connected closing the valuation disconnect arsenic nary worth has been ascribed by the markets to IAC’s assets beyond MGM for excessively long. Share repurchase and expanding the involvement successful MGM are the main superior allocation options, and the institution is already acting connected both. One circumstantial simplification determination IAC made this twelvemonth was the spinoff of Angi, the location services marketplace. We purchased much Angi shares post-spin astatine a depressed terms and past sold our presumption arsenic grounds of their multi-year turnaround heading down the close way caused the banal to scope our appraisal. Casino relation MGM Resorts had a comparatively weaker 2025 successful Las Vegas owed to hard comparisons aft aggregate years of strength. A important turnaround astatine BetMGM positive beardown performances astatine non-Las Vegas “regional” properties and Macau helped dependable the consolidated concern passim the year. The wide marketplace communicative for astir of the twelvemonth has been that Las Vegas has peaked for assorted reasons. We, and IAC, judge Vegas cannot beryllium replicated anyplace successful the world, and MGM has a large presumption arsenic the marketplace leader. Management has corrected immoderate pricing mistakes portion making moves to constrictive their focus. A caller merchantability of 1 of their little prime properties for a higher aggregate than wherever the consolidated concern trades, arsenic good arsenic withdrawing their New York City casino bid, freed up much superior for a absorption squad who has repurchased implicit 40% of their shares astatine highly charismatic prices implicit the past 5 years."