Longleaf Fund Trims ESRT After P/V Gap Closes, Adds on 2025 Weakness
Longleaf Partners Small-Cap Fund trimmed its ESRT holding in Q4 2024 after ESRT’s price-to-value gap fully closed, then added to the position in 2025 at depressed valuations. ESRT shares have fallen 8.9% over one month and 33.85% over 52 weeks, with a $1.764 billion market capitalization.
1. Hedge Fund Position Adjustment
In its Q4 2025 investor letter, Longleaf Partners Small-Cap Fund disclosed it trimmed its ESRT stake in Q4 2024 after ESRT’s price-to-value gap closed. It subsequently added to the position in 2025 at lower prices, citing stronger on-the-ground leasing trends versus weak headline sentiment.
2. ESRT Market Performance and Valuation
As of February 24, ESRT shares stood at $5.94, down 8.9% over one month and 33.85% year-over-year, reflecting market fears over New York City’s new mayor. With a $1.764 billion market capitalization, ESRT trades below its appraised value despite region-wide leasing outpacing market sentiment.