What Makes Mattel (MAT) a Fundamentally Strong Company?

Core Insights - Longleaf Partners Fund reported a return of 3.35% in Q4 2025, outperforming the S&P 500's 2.66% but underperforming the Russell 1000 Value Index's 3.81% return, indicating a challenging year without standout performers [1] - The firm emphasizes a strategy focused on strengthening portfolio outcomes rather than chasing short-term winners, advocating for a portfolio of real companies during periods of excessive speculation [1] Company Highlights: Mattel, Inc. (NASDAQ:MAT) - Mattel, Inc. is identified as a key contributor to the Fund's performance, with the company in its strongest position in over a decade, driven by strong brands like Hot Wheels, Barbie, and UNO [3] - The stock closed at $21.04 on January 16, 2026, with a one-month return of 6.26% and a 52-week gain of 17.35%, reflecting a market capitalization of $6.779 billion [2] - Mattel's strong balance sheet facilitated $600 million in stock repurchases in 2025, with expectations for further repurchases in 2026 at discounted prices [3] - The toy business is experiencing growth, with gross margins remaining robust at 50%, and a promising outlook for owned intellectual property with upcoming releases in 2026 [3] Hedge Fund Interest - As of the end of Q3 2025, 34 hedge fund portfolios held shares of Mattel, an increase from 33 in the previous quarter, indicating growing interest among institutional investors [4]