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Fund Times

Longleaf Partners Adds Berkshire Stake

Manager Hawkins tells fundholders Berkshire fell well below his estimate of its intrinsic value in the first quarter.

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Analyst Pick  Longleaf Partners Fund (LLPFX) has added a 4.5% stake in Warren Buffett's  Berkshire Hathaway (BRK.A). It's the first time the fund has owned Berkshire. Co-manager Mason Hawkins told attendees at tonight's Longleaf annual shareholder meeting in Memphis that Berkshire fell well below his estimate of its intrinsic value in 2009's first quarter, and the fund bought in. He says Berkshire's misunderstood derivative contracts and temporary setbacks in the investment portfolio don't diminish its long-term prospects.

Longleaf added the stake in the first quarter when the shares fell to under $80,000, about half of Longleaf's estimate of Berkshire's intrinsic value. Berkshire was the only new purchase during the quarter.

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Ryan Leggio has a position in the following securities mentioned above: LLPFX. Find out about Morningstar’s editorial policies.