FLM continues to get pounded. Longleaf Small Cap shows it as the top position as of 6/30, and they have been positive on the stock since at least a couple years ago in OID. the poor results of this fund (LLSCX) since July suggest that FLM has remained a large POSition. amazing how last year's winners can be the biggest losers this year--in 2001, FLM actually became a momentum stock of sorts, with all sorts of nonvalue-oriented momo types jumping on the stock as it tripled in a few months. certainly made Mason Hawkins look like a genius. alas, alpha always absconds...
since Longleaf always makes a big deal about the high integrity of their "partners" (i.e., investee companies--viz., stories of how they wouldn't invest in some co when they heard the CEO hired a lady of the night, so the CEOs at all their cos are super "high-integrity" folk, supposedly), i wonder what they think about Hansen and crew now. the stock was down huge again today on big volume despite the immensely oversold condition. is this co going BK, or is the equity a buy somewheres in here? can Longleaf handle another large profile blowup like this (fortunately, LLSCX is closed)? will they double down at these low levels, or cut bait? are these 20% down days on double average volume the sign of a big player wisely leaving the stock, or panicked longs who are selling sloppy? we'll find out in about a month when the Sep quarter holdings come out (unless a Principia subscriber cares to educate us). |
