L
ongleaf Partners, managed by Southeastern Asset Management, released its "Small-Cap Fund" third quarter 2024 investor letter, which can be downloaded here. The fund returned 8.92% in the third quarter, outperforming the Russell 3000's 6.23% return but slightly trailing the more relevant Russell 2000's 9.27% return.

    The portfolio achieved strong absolute returns in a volatile small-cap environment. Longleaf Partners highlighted stocks like Anywhere Real Estate Inc. (NYSE:HOUS), a residential real estate services provider headquartered in Madison, New Jersey. The company's one-month return was -22.90%, and its shares lost 17.92% of their value over the last 52 weeks.

    On October 24, 2024, Anywhere Real Estate Inc. (NYSE:HOUS) stock closed at $3.94 per share with a market capitalization of $443.979 million. Longleaf Partners stated regarding Anywhere Real Estate Inc. (NYSE:HOUS): "Anywhere's stock price is impacted most by interest rates in the short term, but as the Federal Reserve eased rates, optimism around mortgage rates improved, benefiting Anywhere. The company remains FCF positive and will generate substantial cash flow in a more normalized environment."

    Longleaf Partners trimmed their position after recent strong performance but continue to have confidence in CEO Ryan Schneider's efforts to grow value per share.