Longleaf Partners Fund is Expecting a Surge in CNX Resources Corporation’s (CNX) Stock Price
Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third-quarter 2025 investor letter. The letter can be downloaded here. The fund returned -0.33% in the third quarter, compared to the S&P 500’s 8.12 % return and the Russell 1000 Value’s 5.33% return. The firm is not happy with the flat performance of the portfolio, emphasizing its investments in real assets and brands that generate growing free cash flow (FCF) per share. Despite facing market pressures from speculation and government uncertainty, it anticipates that the Fund's ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its third-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as CNX Resources Corporation (NYSE:CNX). CNX Resources Corporation (NYSE:CNX) is an independent natural gas and midstream company. The one-month return of CNX Resources Corporation (NYSE:CNX) was 1.58%, and its shares lost 10.47% of their value over the last 52 weeks. On October 23, 2025, CNX Resources Corporation (NYSE:CNX) stock closed at $32.74 per share, with a market capitalization of $4.63 billion.
Longleaf Partners Fund stated the following regarding CNX Resources Corporation (NYSE:CNX) in its third quarter 2025 investor letter:
"As the CNX Resources Corporation's (NYSE:CNX) hedges mature, share repurchases continue and its Deep Utica resource potential becomes more apparent, the company should trade at a premium 10 15x FCF multiple. This, combined with higher than-expected FCF per share from its integrated, low-cost approach, could drive the stock price well over $50 per share."
CNX Resources Corporation (NYSE:CNX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held CNX Resources Corporation (NYSE:CNX) at the end of the second quarter, compared to 36 in the previous quarter. While we acknowledge the potential of CNX Resources Corporation (NYSE:CNX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
In another article, we covered CNX Resources Corporation (NYSE:CNX) and shared the list of cheap stocks to buy for the next 5 years. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
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