Here’s How the Separation of Its Freight Unit Affects FedEx Corporation (FDX)

Group 1: Fund Performance - Longleaf Partners Fund returned -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and the Russell 1000 Value's 5.33% [1] - The firm is dissatisfied with the portfolio's flat performance, focusing on investments in real assets and brands that generate growing free cash flow (FCF) per share [1] - The fund anticipates that its ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases [1] Group 2: FedEx Corporation Overview - FedEx Corporation (NYSE:FDX) had a one-month return of 1.44% and a 52-week loss of 11.34%, closing at $238.17 per share with a market capitalization of $56.925 billion on October 23, 2025 [2] - The company is focused on operational improvements despite a challenging macro environment, with expectations for significant value realization from the separation of its Freight unit next year [3] Group 3: Investment Sentiment - FedEx Corporation is not among the 30 most popular stocks among hedge funds, with 67 hedge fund portfolios holding the stock at the end of Q2 2025, up from 62 in the previous quarter [4] - The company's revenue increased by 3% year-over-year, driven by strength in U.S. domestic package services [4] - While FedEx shows potential as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [4]