Longleaf Partners cites macro headwinds in Rayonier Q3 letter

Longleaf Partners, a fund managed by Southeastern Asset Management, highlighted Rayonier Inc. (NYSE: RYN) in its third-quarter 2026 investor letter for the Partners Fund. The firm noted that the timberland owner’s results were as expected, with the company continuing to repurchase shares and pay a dividend, despite a lack of significant company-specific news during the period.

The fund reported a return of 2.41% in the third quarter and a year-to-date return of -3.15%, lagging the S&P 500’s performance of 2.30% and 12.75% for the same periods. Although the fund’s three-year annualized returns stood at 11.7% entering the year, recent performance has raised questions about the investment strategy. Longleaf Partners stated that it believes company values are performing better than stock prices, even as macro factors like higher interest rates impact the market. The firm expects financially strong investments to endure, noting that while some stocks have faced earnings disappointments, long-term values remain intact. Within the portfolio, sectors are showing divergences where profit growth has not yet translated into share price gains, while the aggregate outlook points to growth in the mid-single digits.

Rayonier Inc. (NYSE: RYN) is a land resources real estate investment trust that manages timberlands sustainably. As of October 20, 2026, the stock closed at $18.81 with a market capitalization of $5.63 billion. The stock posted a year-to-date pullback of 13.12% and traded within a 52-week range of $17.71 to $24.84.

In the investor letter, Longleaf Partners explained that Rayonier trades with interest rates and lumber prices, both of which ended the quarter poorly. The fund described Rayonier as a long-term-irreplaceable asset, noting that the market has begun to appreciate its advantaged position by closing the valuation gap with Weyerhaeuser, its last standing US public company peer. This movement aligned with the fund’s early-year suspicion that the valuation gap between the two companies was too large.

According to database records, 29 hedge fund portfolios held Rayonier Inc. (NYSE: RYN) at the end of the second quarter, an increase from 26 in the previous quarter. The stock is not currently on a list of the 40 most popular stocks among hedge funds.