Longleaf Partners Small-Cap Fund Trimmed Empire State Realty (ESRT) as the P/V Gap Had Closed

3 weeks ago 19

Soumya Eswaran

Wed, February 25, 2026 astatine 7:07 AM CST 3 min read

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Longleaf experienced respective environments passim its acquisition successful small-cap investing. This year, the underlying developments successful the Fund’s holdings were much promising than the existent banal terms returns erstwhile compared to the people of ostentation positive 10% and the antithetic show of the Russell 2000. In Q4 2025, the Fund returned 1.13% compared to 2.40% for the Russell 3000 Index and 2.19% for the Russell 2000 Index. The Fund’s yearly instrumentality was 7.56% compared to 17.15% and 12.81% instrumentality for the indexes, respectively. In 2025, Southeastern demonstrated beardown show by protecting investments during marketplace volatility, emphasizing the worth of owning solid, escaped currency flow-generating companies implicit speculative fads. 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 Small-Cap Fund highlighted stocks similar Empire State Realty Trust, Inc. (NYSE:ESRT). Empire State Realty Trust, Inc. (NYSE:ESRT) is simply a NYC-focused REIT that owns and operates office, retail, and multifamily assets. On February 24, 2026, Empire State Realty Trust, Inc. (NYSE:ESRT) banal closed astatine $5.94 per share. One-month instrumentality of Empire State Realty Trust, Inc. (NYSE:ESRT) was -8.90%, and its shares mislaid 33.85% implicit the past 52 weeks. Empire State Realty Trust, Inc. (NYSE:ESRT) has a marketplace capitalization of $1.764 billion.

Longleaf Partners Small-Cap Fund stated the pursuing regarding Empire State Realty Trust, Inc. (NYSE:ESRT) successful its 4th fourth 2025 capitalist letter:

"Empire State Realty Trust, Inc. (NYSE:ESRT) and Alexander’s – In the 4th fourth of 2024, we were trimming our presumption successful New York existent property institution ESRT, arsenic it had been a beardown performer and the P/V spread had closed. This year, some ESRT and its adjacent Alexander’s (which was a caller presumption successful 2025) faced banal marketplace headwinds arsenic New York existent property sentiment shifted. We person added to some astatine large prices. It is an absorbing dynamic wherever the on-the-ground results are stronger than the headlines, with portion wide leasing trends acold outpacing anemic banal terms performance. The banal marketplace worries astir Mayor Mamdani, but that fearfulness is present successful the banal prices, positive it remains to beryllium seen however genuinely business-unfriendly his medication volition be. New York existent property has made it done a batch (the metropolis going broke successful the 1970s, 9/11, COVID, etc.) historically. These 2 stocks traded astatine oregon supra our appraisals during the not-great de Blasio medication and are uniquely undervalued vs. peers today. Both of our holdings are connected discourtesy with aggregate ways to turn worth per stock and a willingness to merchantability assets into a much attractively priced backstage market."

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