Longleaf Fund Hits 1.13% Return, Highlights GCI Liberty Post-Spin and $300M Offering
Longleaf Small-Cap Fund returned 1.13% in Q4 2025 versus 2.19% for the Russell 2000 and highlighted GCI Liberty after its July spin-out. GCI Liberty dominates Alaska's broadband markets, secured a $300M rights offering, trades at a discount to Lower 48 telecom peers.
1. Longleaf Fund’s Q4 2025 Performance
Longleaf Small-Cap Fund generated a 1.13% return in the fourth quarter of 2025, trailing the Russell 2000’s 2.19% but outperforming inflation-plus-10% targets. In its investor letter, the fund identified GCI Liberty as a key contributor following strategic portfolio adjustments.
2. Details of the GCI Liberty Spin-Out
GCI Liberty was spun out from Liberty Broadband in July 2025 and immediately caught Longleaf’s attention for its standalone growth prospects. The separation unlocked attractive tax attributes and positioned GCI to generate significant free cash flow as an independent communications services provider.
3. Market Position and Rights Offering
GCI Liberty holds the number one position in both consumer and enterprise broadband across Alaska and operates the state’s second-largest wireless network. The company completed a $300 million rights offering underwritten by its chairman, John Malone, yet its shares continue to trade at a discount to Lower 48 telecom peers despite strong cash flow potential.