Longleaf Partners, managed by Southeastern Asset Management, released its second-quarter 2026 investor letter for its “Partners Fund”. A copy of the letter can be downloaded here. The letter states that the portfolio holdings are attractive now based on both P/V and P/FCF metrics. However, the Fund returned 3.87% in the quarter, significantly lagging the S&P 500’s 15.20% return and the Russell 1000 Value Index’s 13.87% gain. An underweight in Information Technology (IT) primarily contributed to the underperformance. The market’s preference for overvalued stocks in Industrials and other sectors led to inflated multiples, overshadowing real earnings power. The Firm’s investment approach focuses on median, unweighted multiples, prioritizing growth in free cash flow per share, the potential for multiple expansion, and strategic initiatives. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Longleaf Partners Fund highlighted CNX Resources Corporation (NYSE:CNX). CNX Resources Corporation (NYSE:CNX) is an independent natural gas and midstream company. The one-month return of CNX Resources Corporation (NYSE:CNX) was -2.94%, and its shares lost 9.12% of their value over the last 52 weeks. On July 10, 2026, CNX Resources Corporation (NYSE:CNX) stock closed at $31.99 per share, with a market capitalization of $4.53 billion.
Longleaf Partners Fund stated the following regarding CNX Resources Corporation (NYSE:CNX) in its Q2 2026 investor update:
“CNX Resources Corporation (NYSE:CNX) – After contributing in the first quarter, natural gas company CNX Resources detracted in the second quarter. The company reported another solid quarter and continues to focus on steadily growing FCF per share and value per share. While it was mildly disappointing that CNX did not get a fuller runup earlier in the year like some of its less conservatively financed energy stock peers yet still traded off this quarter, we take comfort knowing that the company has been one of our best share repurchasers over the last several years. This means that stock pullbacks are buying opportunities for the company and for us. We had trimmed our position when energy stocks were riding highest in the wake of the Iran War, but we added back to CNX at better prices recently.”
CNX Resources Corporation (NYSE:CNX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 42 hedge fund portfolios held CNX Resources Corporation (NYSE:CNX) at the end of the first quarter, compared to 46 in the previous quarter. While we acknowledge the potential of CNX Resources Corporation (NYSE:CNX) 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.
