Longleaf Partners, managed by Southeastern Asset Management, released its third-quarter 2025 investor letter, reporting a -0.33% return. The firm is focused on real assets and brands that generate growing free cash flow. The fund aims to improve margins and increase share repurchases, with potential for a rise in FCF multiple.

In the third quarter, Longleaf Partners Fund highlighted The Kraft Heinz Company (NASDAQ: KHC), which manufactures food and beverage products. The stock had a one-month return of -3.13% and lost 27.36% in the last 52 weeks. On October 23, 2025, it closed at $25.41 per share, with a market capitalization of $29.857 billion.

Longleaf Partners Fund believes The Kraft Heinz Company (NASDAQ: KHC) is undervalued due to the upcoming split into two businesses. The higher-growth unit may garner a teens EBITDA multiple, potentially leading to a combined stock price over $40 per share.

UBS maintains a neutral stance on The Kraft Heinz Company (NASDAQ: KHC) ahead of Q3 results. While not among the 30 most popular stocks among hedge funds, the company is seen as having investment potential. However, certain AI stocks offer greater upside potential and lower downside risk, according to UBS.

Read more at Yahoo Finance: Will The Kraft Heinz Company (KHC) Stock Price Cross Over $40?