Will PotlatchDeltic Corporation (PCH) Grow Despite Challenges?

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.70% in the second quarter, compared to the Russell 3000’s 10.99% return and the Russell 2000’s 8.50% gain. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks such as PotlatchDeltic Corporation (NASDAQ:PCH). PotlatchDeltic Corporation (NASDAQ:PCH) is a Real Estate Investment Trust (REIT) that owns nearly 2.1 million acres of timberlands. The one-month return of PotlatchDeltic Corporation (NASDAQ:PCH) was 1.87%, and its shares gained 3.03% of their value over the last 52 weeks. On August 20, 2025, PotlatchDeltic Corporation (NASDAQ:PCH) stock closed at $42.54 per share, with a market capitalization of $3.288 billion.

Longleaf Partners Small-Cap Fund stated the following regarding PotlatchDeltic Corporation (NASDAQ:PCH) in its second quarter 2025 investor letter:

"PotlatchDeltic Corporation (NASDAQ:PCH) – Timberland and mill company PotlatchDeltic was a detractor for the quarter. Despite sentiment shifting from the company being a tariff winner in Q1 to now being the victim of a sluggish housing market, the underlying business continues to see growth. Consequently, our position evolved, and we became net buyers during the quarter after trimming in the first quarter. The company continues to stand out as an undervalued, reliable dividend payer with a disciplined management team, despite some considering it a boring company."

PotlatchDeltic Corporation (NASDAQ:PCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held PotlatchDeltic Corporation (NASDAQ:PCH) at the end of the first quarter, which was 22 in the previous quarter. While we acknowledge the potential of PotlatchDeltic Corporation (NASDAQ:PCH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered PotlatchDeltic Corporation (NASDAQ:PCH) and shared the list of best lumber stocks to buy according to hedge funds. PotlatchDeltic Corporation (NASDAQ:PCH) was a contributor to Longleaf Partners Small-Cap Fund's performance last quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.