Form ADV Part 2A, Item 4
THIS SECTION IS REQUIRED. YOU MAY NOT OMIT THIS HEADING. You must answer each item. If an
item is not applicable, you must state that it is not applicable.
A. Describe your advisory firm, including how long you have been in business. Identify your principal owner(s).
Notes: (1) For purposes of this item, your principal owners include the persons you list as owning 25% or more
of your firm on Schedule A of Part 1A of Form ADV (Ownership Codes C, D or E). (2) If you are a publicly held
company without a 25% shareholder, simply disclose that you are publicly held. (3) If an individual or company
owns 25% or more of your firm through subsidiaries, you must identify the individual or parent company and
intermediate subsidiaries. If you are an SEC-registered adviser, you must identify intermediate subsidiaries that
are publicly held, but not other intermediate subsidiaries. If you are a state-registered adviser, you must identify
all intermediate subsidiaries.
In 1975 O. Mason Hawkins founded Southeastern Asset Management Inc. (“Southeastern” or the “Company”)
to provide investment management services for clients using a value-oriented, long-term, bottom-up stock
selection process. Mr. Hawkins owns more than 25% of the firm, and serves as its Chairman. In 1986, G.
Staley Cates joined the research team and currently serves as Vice Chairman. Mr. Cates owns over 25% of
Southeastern. The remainder of the Company is owned entirely by its employees. Effective January 1, 2019,
Ross Glotzbach became CEO of the firm.
Southeastern Asset Management International (UK) Ltd. (“Southeastern UK”), is a UK limited company 100%
owned by Southeastern. Southeastern UK provides international research and client services to Southeastern.
Southeastern Asset Management International (Singapore) Pte. Ltd. (Southeastern Singapore), is a Singapore
limited company 100% owned by Southeastern, and provides fund management services. Southeastern UK
and Southeastern Singapore were formed with existing employees of Southeastern and began operation in
November 2007 and December 2009, respectively, after receiving regulatory authorization. Southeastern UK
and Southeastern Singapore provide services directly to Southeastern to assist in managing client portfolios.
B. Describe the types of advisory services you offer. If you hold yourself out as specializing in a particular type
of advisory service, such as financial planning, quantitative analysis, or market timing, explain the nature of that
service in greater detail. If you provide investment advice only with respect to limited types of investments,
explain the type of investment advice you offer, and disclose that your advice is limited to those types of
investments.
The Company primarily provides discretionary investment management services for institutional accounts and
funds. The Company follows a similar strategy for its various clients and seeks superior long-term performance
by acquiring equity securities that meet certain qualitative and quantitative criteria:
• Strong businesses that are understandable, financially sound, competitively entrenched, and will generate
growing free cash flow;
• Good management partners who are capable operators, responsible capital allocators, trustworthy, and
shareholder-oriented; and
• Good price that is a meaningful discount to our conservative appraisal determined through fundamental
financial analysis using disciplines we’ve applied for almost 50 years. We believe purchasing equities at
prices substantially less than their intrinsic worth will protect
capital from significant permanent loss and
provide the opportunity for substantial appreciation if the market recognizes the company’s value.
We sell securities when they approach our appraisals, when we perceive a change in company fundamentals
that permanently impairs corporate value, when other investments offer substantially greater opportunity, or if
the original reasons for purchase materially change. While Southeastern focuses primarily on common stocks
and securities convertible into common stocks, depending on client guidelines, the firm also invests for its
clients in debt securities and certain derivatives. There are four primary types of accounts, including US Equity,
Non-US Equity, Global Equity, which is a combination of US and non-US investments, and Asia-Pacific Equity,
which invests primarily in securities from the Asia-Pacific region. Southeastern also manages a few Small-Cap
accounts. Southeastern may offer additional account types in the future.
C. Explain whether (and, if so, how) you tailor your advisory services to the individual needs of clients. Explain
whether clients may impose restrictions on investing in certain securities or types of securities.
Southeastern provides investment management services to separately managed accounts, each of which is
covered by an investment management agreement (IMA) that contains guidelines and restrictions specific to
that client. Broadly speaking, clients hire Southeastern to implement the investment philosophy it has applied
for many years, but portfolios are specifically tailored to meet each client’s requirements. In particular, client
relations personnel initially gain an understanding of the client’s financial situation and investment objectives to
determine the suitability of Southeastern’s approach. Then client relations, portfolio administration, and trading
departments review the terms of the IMA prior to execution to ensure Southeastern is capable of performing the
requirements and that the guidelines are appropriate in light of Southeastern’s investment strategy. Following
execution of the IMA, the research team selects investments that it believes meet Southeastern’s criteria, as
well as the client mandates for which it would be appropriate. Trading and portfolio administration oversee the
structuring of portfolios to be sure they meet each client’s stated guidelines and restrictions.
D. If you participate in wrap fee programs by providing portfolio management services, (1) describe the
differences, if any, between how you manage wrap fee accounts and how you manage other accounts, and (2)
explain that you receive a portion of the wrap fee for your services.
Not applicable.
E. If you manage client assets, disclose the amount of client assets you manage on a discretionary basis and
the amount of client assets you manage on a non-discretionary basis. Disclose the date “as of” which you
calculated the amounts.
Note: Your method for computing the amount of “client assets you manage” can be different from the method
for computing “assets under management” required for Item 5.F in Part 1A. However, if you choose to use a
different method to compute “client assets you manage,” you must keep documentation describing the method
you use. The amount you disclose may be rounded to the nearest $100,000. Your “as of” date must not be
more than 90 days before the date you last updated your brochure in response to this
Item 4.E.
As of December 31, 2023: $5,271,901,660 discretionary and $0 non-discretionary.