| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.12% | 12.84% | 21.72% |
The Third Avenue Small-Cap Value Fund returned 12.85% in Q2 2026 and 21.72% year-to-date, demonstrating strong risk-adjusted returns across highly distinct operating environments. The Fund's concentrated, high-conviction approach focuses on well-financed, non-speculative companies trading at modest prices with reasonable diversification across fundamental risk factors. During Q1 2026, the Fund significantly outperformed during market weakness by being materially 'less bad' than indices, while in Q2 it produced strong absolute returns despite underperforming momentum-driven indices dominated by semiconductor speculation and unprofitable companies. U.S. small-cap valuations reached historically extreme lows relative to large-caps, creating a compelling opportunity for sustained outperformance. The Fund benefited from robust M&A activity, with six holdings taken over in the last six quarters at healthy premiums, including Taylor Morrison (acquired by Berkshire Hathaway) and Catalyst Pharmaceuticals. The managers initiated eight new positions year-to-date in areas of significant pessimism, including government contractor Maximus, building products distributors, and M&A consultant CRA International. The current regulatory environment appears highly accommodative to deal activity, positioning the portfolio for continued resource conversion opportunities.
The Fund invests in significantly undervalued small-cap businesses with strong balance sheets facing temporary headwinds, combining undervaluation with downside protection to create investment asymmetry that offers significant upside while limiting permanent capital loss.
The managers perceive a fantastic prospective opportunity for U.S. small-cap outperformance given that relative valuations remain very low despite recent strength, and the value spread has only modestly shrunk. They view the current environment as presenting special opportunities for selective fundamental investors focused on significantly undervalued, well-financed businesses facing temporary headwinds. The heightened stock volatility has created an increasingly robust opportunity set, while the current business and political environment appear to encourage elevated consolidation activity in the small-cap universe. The managers would not be surprised to see the Fund continue to experience periodic takeovers of its holdings.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 27 2026 | 2026 Q2 | ALG, BCC, BXC, CPRX, CRAI, ECPG, ICFI, KALU, LXU, MMS, MYRG, PB, PRA, SD, SUPN, TDW, TMHC, TPH, UMBF, UNF | Government IT, Homebuilders, M&A, Pharmaceuticals, Regional Banks, small caps, takeovers, value |
TMHC CRAI |
Third Avenue Small-Cap Value Fund delivered 21.72% year-to-date through a concentrated portfolio of undervalued, well-financed businesses. U.S. small-caps reached historically extreme valuation lows versus large-caps, creating compelling multi-year outperformance potential. Six holdings were acquired at healthy premiums in six quarters amid surging M&A activity. The Fund initiated eight new positions in deeply pessimistic areas while maintaining disciplined avoidance of semiconductor momentum and unprofitable speculation. |
| Apr 22 2026 | 2026 Q1 | COMP, CPRX, ECPG, HOG, KALU, LXU, PBF, QLYS, RHI, SD, TDW, TPH, UNF | AI, cybersecurity, disruption, energy, Fertilizers, small caps, Staffing, value | - | Third Avenue's small-cap value strategy delivered strong Q1 outperformance driven by energy disruption beneficiaries and successful M&A exits. The fund capitalized on AI-driven market dispersion to initiate new positions in cybersecurity and staffing while maintaining focus on contrarian opportunities. Small-caps remain historically cheap versus large-caps despite recent strength, supporting continued active strategy advantages. |
| Jan 22 2026 | 2025 Q4 | ALG, BATRK, BXC, COLL, CTAS, ECPG, FPH, ICFI, KALU, LXU, MYRG, NYCB, OCSL, PB, PRA, SEB, SUPN, UMBF, UNF | Aluminum, Governance, Owner-Operator, Pharmaceuticals, Regional Banks, small caps, value |
KALU COLL ECPG UNF FLG |
Third Avenue Small-Cap Value Fund delivered strong Q4 and full-year 2025 returns through disciplined value investing focused on owner-operator companies. Kaiser Aluminum and Collegium Pharmaceutical led performance while the fund opportunistically initiated Flagstar Bank at attractive valuations. The managers prioritize governance alignment and long-term value creation, maintaining selective positioning with 5.2% cash. |
| Oct 21 2025 | 2025 Q3 | ABAC, BATRK, BCC, BXC, COLL, CTAS, CTLP, ECPG, FRPH, HBB, HFWA, ITIC, KALU, LXU, MYRG, PB, PRA, ROG, SD, SUPN, TDW, UMBF, UNF, VSTO | Building Materials, financials, healthcare, industrials, Pharmaceuticals, small caps, technology, value |
AMBC AMBC BOISE ROG |
Third Avenue Small-Cap Value Fund targets transitional small-cap companies trading below net asset value with strong balance sheets. Q3 performance was driven by Supernus Pharmaceuticals and refinancing-related gains at Investors Title. New positions in Boise Cascade and Rogers Corporation offer compelling value despite industry headwinds. The patient, multi-year approach focuses on fundamental corporate transformations creating shareholder wealth. |
| Jul 25 2025 | 2025 Q2 | ABCB, ALG, BATRK, BXC, CTLP, ECPG, FRPH, HBB, IBTX, KALU, LXU, MYR, OCFC, PB, PRA, SAGE, SBSI, SUPN, UMBF, VC | Balance Sheet, Financial Strength, M&A, Resource Conversion, small cap, value |
CTLP SUPN CTLP VC |
Third Avenue's small-cap value fund delivered 6.53% returns in Q2 2025 through balance sheet focused investing in well-capitalized companies positioned for resource conversion activities. Strong performance from infrastructure and materials companies, plus successful M&A events like Cantaloupe's acquisition, demonstrate the strategy's effectiveness in capturing once-in-a-generation small-cap value opportunities despite tariff-related market volatility. |
| Mar 31 2025 | 2025 Q1 | ABAC, BATRA, BXC, COLL, ECPG, FPH, FRPH, HBB, ICFI, ITIC, MYRG, OCFC, PB, PRAA, SBSI, SEB, SUPN, TDW, UMBF | financials, M&A, small cap, Trade Policy, value, volatility |
TIDE BXC |
Third Avenue Small-Cap Value Fund outperformed small-cap benchmarks despite -4.54% Q1 return, benefiting from ProAssurance takeover and deploying cash amid trade war volatility. Manager views extreme small-cap valuation discounts as opportunity, maintaining contrarian approach focused on well-financed businesses trading below private market values. Liberation Day uncertainty creates potential catalysts for domestically-focused small-caps. |
| Dec 31 2024 | 2024 Q4 | AMBC, BATRA, COLL, CTAS, ECPG, FPH, FRPH, ICFI, ITIC, IVT, KALU, LXU, MYRG, OCFC, PB, PBF, PRAA, SEB, SSKN, SUPN, TPH, UMBF, UNF | Buybacks, private equity, Regional Banks, Resource Conversion, small caps, value |
OCFC AMBC FPH |
Third Avenue Small-Cap Value Fund trades at historically large discount to net asset value despite solid operating progress in underlying holdings. Fund positioned for resource conversion catalysts including potential regulatory easing and private equity deployment pressure. Regional banks and well-capitalized companies with strong cash flows represent core opportunities as merger activity accelerates in friendlier environment. |
| Sep 30 2024 | 2024 Q3 | BATRA, ECPG, FRPH, HBB, ICFI, ITIC, KALU, LXU, MYRG, PB, PBF, PRA, SD, SSTK, TDW, TPH, UMBF, WASH | Cheapness, energy, Refiners, Regional Banks, small cap, value |
SD PBF |
Third Avenue Small-Cap Value Fund advocates for patient small-cap value investing, citing compelling relative valuations near dot-com bubble lows. The fund deployed cash into energy positions SandRidge and PBF Energy while maintaining regional bank exposure. Managers emphasize fundamental analysis in less-covered companies, expecting superior long-term returns despite recent small-cap underperformance versus large-caps. |
| Jul 19 2024 | 2024 Q2 | ALG, AMZN, BATRA, COLL, CSEC, ECPG, FRPH, HBB, ITIC, KALU, MYRG, NVDA, PRA, SEB, SUPN, TDW, UMBF, UNF, WASH | large cap, Outperformance, Relative Valuation, small caps, value | - | Small-cap stocks trade at extreme valuation discounts to large-caps not seen since the tech bubble, creating compelling opportunity for outperformance. Third Avenue maintains concentrated portfolio of 23 well-capitalized companies trading 17.8% below conservative valuations. Recent underperformance reflects broader small-cap headwinds, but historical precedent suggests significant outperformance when valuation gaps normalize. |
| May 7 2024 | 2024 Q1 | BATRA, ECPG, FIX, FRPH, HBB, IVT, KALU, LXU, MYRG, PRA, SEB, SPHR, TDW, UMBF, WASH | Balance Sheet, Capital Allocation, Concentration, cyclicals, small caps, special situations, value | - | Third Avenue Small-Cap Value Fund outperformed by 341 basis points in Q1 with a concentrated approach targeting well-capitalized companies at deep discounts. The dual-bucket strategy combines steady Long-Term Compounders with event-driven Special Situations. After three years of small-cap underperformance versus large caps, the manager sees unsustainable trends and expects value realization. |
| Jan 28 2024 | 2023 Q4 | ALG, BATRA, COLL, ECPG, FIX, FRPH, HBB, ICFI, ITRN, KALU, LXU, MYRG, PB, PRA, SEB, SPHR, TDW, TPH, UMBF | Fed policy, interest rates, real estate, Regional Banks, small caps, value | COLL | Third Avenue Small-Cap Value Fund outperformed significantly in 2023 through disciplined value investing in small-cap companies with strong balance sheets. The manager deployed cash from 13% to 6.5% during Q4's small-cap rally, benefiting from rate-sensitive sectors like regional banks and real estate while maintaining conviction that fundamental analysis and selectivity will drive long-term outperformance. |
| Oct 25 2023 | 2023 Q3 | BATRK, ECPG, FRPH, HBB, ICFI, IVT, KALU, LXU, MYRG, PRAA, SEB, TDW, UMBF, WASH | energy, Fertilizers, financials, Onshoring, real estate, small cap, value |
LXU BATRK |
Third Avenue Small-Cap Value Fund delivered 3.88% returns in Q3 2023, significantly outperforming its benchmark through disciplined value investing in well-capitalized companies. Strong performance from energy services, casualty insurance, and consumer appliances drove results. New investments in fertilizer producer LSB Industries and Atlanta Braves Holdings capitalize on near-shoring trends and technical mispricings respectively. |
| Dec 31 2022 | 2022 Q4 | - | - | - | |
| Oct 25 2022 | 2022 Q3 | ECPG | - | - | |
| Jun 30 2022 | 2022 Q2 | BATRA, FEPH, MSGE, TDW, WED CN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Small CapsU.S. small-cap equities significantly outperformed large-caps in H1 2026, with the S&P SmallCap 600 Index outperforming the S&P 500 by 13.79%. Small-cap valuations relative to large-caps reached historically extreme lows, seen only once in the last four decades. Historical precedent suggests powerful and enduring small-cap outperformance of approximately 13% per year over five years from similar valuation levels. |
Valuation Outperformance Historical |
Biopharma M&AThe Fund benefited from two pharmaceutical takeovers in Q2 2026: Catalyst Pharmaceuticals was acquired by Angelini Pharma, and both positions made important contributions to performance. The Fund holds Supernus Pharmaceuticals, which could be an attractive tuck-in acquisition for blue-chip healthcare companies seeking to offset patent cliff revenue losses with Supernus' neurology and CNS intellectual property. |
Takeovers Pharmaceuticals Patent Cliff | |
Capital MarketsGlobal M&A surged 40% in 2025 according to Bain & Co, with strategic acquisitions leading growth. Americas M&A grew 52% year-over-year, particularly robust in the United States, with similar growth rates continuing in H1 2026. The current U.S. presidential administration and regulatory environment appear as accommodative to M&A activity as seen in many years. |
M&A Deal Activity Regulatory | |
HomebuildersTaylor Morrison Home Corporation, the fifth largest U.S. homebuilder, was acquired by Berkshire Hathaway at a 25% premium shortly after the Fund's purchase. The company had a strategically located land bank with attractive cost basis, strong position in attractive customer segments, and was extremely well-financed with aggressive share buybacks. The Fund also previously held Tri Pointe Homes, which was taken over in a similar transaction. |
Takeover Land Bank Berkshire | |
Regional BanksThe Fund holds several regional bank investments in an area of robust merger and takeover activity. Prosperity Bancshares holds an interesting strategic position in Texas, one of the country's most attractive banking markets. Regional banking is highlighted as a potential area for future M&A transactions. |
Consolidation Texas M&A | |
Government ITMaximus, a top-20 government contractor, faced significant pessimism related to D.O.G.E. narratives, government funding lapses, and AI disintermediation fears despite 8% federal revenue growth in 2025. Management expressed confidence in margin expansion through internal AI use, processing 10 million pages of medical records daily with improved efficiency. The company was recently awarded a large Air Force cyber security contract and may benefit from the One Big Beautiful Bill Act changes to Medicaid and SNAP benefits. |
AI Veterans Affairs Medicaid | |
Building Materials RetailThe Fund recently established positions in deeply depressed building products distribution companies Boise Cascade and BlueLinx Holdings. Building products distribution has long been a consolidating industry with the trend appearing to accelerate. Both companies have strategically located nationwide networks of logistically well-connected distribution facilities that could attract acquirers. |
Distribution Consolidation Logistics | |
Semiconductor CycleThe Semiconductors sector of the S&P SmallCap 600 Index returned 109.3% in Q2 2026, with Electronic Components and Semiconductor Equipment returning 108.12% and 83.13% respectively. The managers note it is unusual for an entire sector to more than double in value in one quarter and suggest excessive exuberance may be present. The Fund's relative underperformance from not participating in this momentum will not keep them up at night. |
Momentum Valuation Exuberance | |
| 2026 Q1 |
Small CapsSmall-cap equities have shown relative strength over the last year after more than a decade of underperformance versus large-caps. Despite recent outperformance, small-caps remain exceptionally inexpensive compared to large-caps by historical standards. Rising dispersion of returns and small-cap relative cheapness create favorable conditions for active small-cap value strategies. |
Small Caps Value Dispersion Outperformance Cheapness |
AIThe proliferation of artificial intelligence technologies is causing widespread fears of disintermediation and obsolescence risk in labor and software markets. This has contributed to creating winners and losers and broad performance dispersion in public equity markets. The Fund initiated positions in companies like Qualys that appear well positioned to thrive in the new AI environment. |
AI Disintermediation Software Cybersecurity Technology | |
EnergyEnergy-related holdings reacted to Middle East turmoil in idiosyncratic ways during the quarter. LSB Industries benefited from global gas disruption and rising fertilizer prices. PBF Energy benefited from disruption to Middle East oil flows creating wider crack spreads. SandRidge Energy was a direct beneficiary of higher energy prices from Middle East transportation disruption. |
Energy Oil Gas Geopolitical Disruption | |
FertilizersLSB Industries was a leading performance contributor, benefiting from global gas disruption, rising prices and potentially serious impacts to the global fertilizer supply. The disrupted environment created significant opportunities for fertilizer producers positioned to take advantage of supply constraints. |
Fertilizers LSB Supply Disruption Pricing | |
CybersecurityThe Fund initiated a position in Qualys, an established, growing, and highly profitable cybersecurity company specializing in vulnerability management software. The company appears well positioned to potentially thrive in the new AI environment, with increasing use of agentic AI potentially increasing the need for IT security monitoring. |
Cybersecurity Qualys Vulnerability Software Security | |
StaffingThe Fund initiated a position in Robert Half, a professional staffing company that has experienced three consecutive years of muted activity following pandemic-era strength. Current investor concerns center on AI potentially reducing demand for certain roles, though the company benefits from extensive networks and proprietary candidate data accumulated over decades. |
Staffing Robert Half Recruiting Professional Cyclical | |
| 2025 Q4 |
FinancialsThe Fund is currently substantially invested in the Financials sector, with performance closely tied to developments in this industry. Companies in the Financials sector may be adversely affected by changes in the regulatory environment and interest rate changes. |
Banks Insurance Interest Rates Regulation |
| 2025 Q3 |
ValueThe fund focuses on buying companies trading at discounts to conservative estimates of net asset value, with shares not reflective of potential for business improvement or value creation. The investment approach emphasizes businesses well-financed and trading below intrinsic value with identifiable value creation levers. |
Discount NAV Undervalued Asset Intrinsic |
Small CapsThe fund specifically targets small-cap companies in transitional states or positive metamorphosis, with average holding periods of about five years. The strategy focuses on small-cap businesses with strong balance sheets and multiple identifiable levers for value creation. |
Small-cap Transitional Balance Sheet Metamorphosis Holding Period | |
Building MaterialsThe fund initiated a new position in Boise Cascade, a leading manufacturer and distributor of building materials in the United States. Despite near-term headwinds from slowing housing activity, the company retains strong financial position and could benefit from industry consolidation. |
Construction Housing Distribution Manufacturing Consolidation | |
| 2025 Q2 |
Small CapsU.S. small-cap companies present once-in-a-generation attractive opportunities relative to the broader equity market after lengthy underperformance. Higher volatility in small-caps increases probability of significant mispricing, creating opportunities for active managers. The investment universe offers particularly high volume of merger and acquisition activity with low impediments to transactions. |
Small Cap Undervaluation Volatility Active Management M&A |
ValueThird Avenue's balance sheet focused approach emphasizes investing in well-capitalized companies trading at low valuations. Strong financial positions provide control over timing and increase probability of value-creating resource conversion activities. Companies with cheap stocks and financial wherewithal can execute value-enhancing share buybacks and opportunistic acquisitions. |
Value Investing Balance Sheet Financial Strength Undervaluation Resource Conversion | |
BuybacksWell-financed companies with undervalued stocks can create significant shareholder value through share repurchase programs. Having financial wherewithal and cheap stock prices sets the stage for value-enhancing buybacks. Companies like Visteon have shown discipline in redeploying free cash flow towards substantial share buybacks. |
Share Buybacks Capital Allocation Shareholder Value Free Cash Flow Financial Discipline | |
| 2025 Q1 |
ValueFund focuses on securities available at valuations significantly below private market value with low probability of permanent capital impairment. Manager emphasizes buying businesses at significant discounts to estimated values with conservatism baked in. |
Undervaluation Private Market Value Discount Cheapness Mispricing |
Small CapsU.S. small-cap stocks have woefully underperformed large-caps in recent years, creating a yawning relative valuation gap. The extreme valuation spreads between large-caps and small-caps mirror conditions from over two decades ago before the dot-com bubble burst. |
Small Cap Underperformance Valuation Gap Russell 2000 MSCI | |
Trade PolicyThe launching of a global trade war presents significant change and unknowns. Liberation Day orders and sweeping U.S. import tariffs create uncertainty, though manager believes many intents are unachievable practically and hopes economic rationality will prevail. |
Tariffs Trade War Liberation Day Import Duties Uncertainty | |
VolatilityManager views stock volatility as a feature rather than bug, rejecting academic finance's use of volatility as risk proxy. Emphasizes that volatility increases probability of material mispricing, particularly during tumultuous environments, and should be embraced by fundamental investors. |
Price Volatility Mispricing Risk Proxy Academic Finance Contrarian | |
| 2024 Q4 |
ValueThe portfolio trades at a historically large discount to estimated net asset value, with Fund Management believing considerable potential exists for attractive absolute returns. The fund focuses on underpriced assets trading below intrinsic value. |
Discount NAV Undervalued Intrinsic Mispriced |
Regional BanksFund holds multiple regional bank positions including OceanFirst Financial, UMB Financial, Southside Bank, and Prosperity Bancshares. Banks are viewed as potential consolidation targets in a friendlier regulatory environment. |
Banking Consolidation Deposits Credit Regulation | |
BuybacksResource conversion activities include large-scale share buybacks as a method for well-financed companies to convert liquid assets into higher and better uses for shareholders. |
Repurchases Capital Liquidity Conversion Returns | |
| 2024 Q3 |
ValueFund focuses on buying cheap companies at discounts to replacement value and cash flows, with emphasis on balance sheet-oriented approaches. Current holdings available at attractive valuations relative to fundamentals. |
Discount Cheapness Balance Sheet Cash Flow Replacement Value |
Small CapsStrong advocacy for small-cap investing based on historical evidence of superior long-term returns. Current relative valuations versus large-caps near cheapest levels since dot-com bubble, creating compelling opportunity. |
Small Cap Relative Valuation Historical Returns Market Cap Outperformance | |
Regional BanksFund maintains 13.9% allocation to U.S. regional banks at quarter end. Trimmed UMB Financial but it remains largest holding, while exiting Washington Trust Bancorp during the quarter. |
Regional Banks Banking Financial Services UMB Financial Portfolio Weight | |
OilEstablished new position in SandRidge Energy, a small-cap U.S. oil and gas exploration company with net cash balance sheet and tax loss carryforwards. Represents only direct commodity price exposure in portfolio. |
Oil Gas Exploration Production Commodity | |
RefinersAdded PBF Energy, an independent refiner with geographically diverse operations. Business model based on refining spreads rather than direct commodity exposure, with strong balance sheet and capital return history. |
Refining Spreads Energy Independent Margins | |
| 2024 Q2 |
Small CapsSmall-cap stocks are trading at only 75% of large-cap valuations, an extremely unusual level of cheapness last seen during the tech bubble. The managers believe this represents a compelling opportunity for significant outperformance when the cycle turns. |
Value Relative Valuation Market Cycles Outperformance |
ValueThe fund emphasizes cheapness and profitability as critical components of their approach. Historical data shows value factors have produced 3.6% annualized excess returns over long periods, even after recent underperformance. |
Factor Investing Profitability Long-term Returns Excess Returns | |
| 2024 Q1 |
Small CapsThe Russell 2000 Index peaked in November 2021 and remains more than 13% below record highs. Over the past three years, the Russell 2000 has generated negligible returns while the S&P 500 has compounded at 11.6%. The manager believes the continued outperformance by large caps is unsustainable and that intrinsic value within the small-cap market will be realized. |
Russell 2000 Valuation Underperformance Opportunity Cycles |
ValueThe fund invests in well-capitalized companies encountering near-term struggles that trade at deeply discounted prices. The weighted-average discount to conservative net asset value estimates rose to 9.4% from 6% in the fourth quarter. The manager emphasizes balance sheet strength and prudent capital allocation as key criteria. |
Discount NAV Balance Sheet Capital Allocation Undervalued | |
| 2023 Q4 |
Small CapsSmall-cap equities rallied late in Q4 from anticipated Fed pivot toward lower rates. Russell 2000 outperformed Russell 1000 by over 7% in December. Despite recent rally, small-caps still lagged for the year and valuations remain discounted versus large-caps. |
Russell 2000 Valuation Fed Policy Interest Rates Performance |
Regional BanksBanking sector was direct beneficiary of potential Fed policy shift. Lower rates should soften deposit cost pressures and improve banking outlook. Fund's bank holdings like UMB Financial and Prosperity Bank were top performers, rising 35% and 25% respectively. |
Deposit Costs Interest Rates Fed Policy Performance Margins | |
ValueFund focuses on conservative, fundamental investing with emphasis on balance sheets and valuations. Manager believes selectivity is vitally important as indiscriminate buying often benefits weaker assets. Fund's weighted-average discount to conservative NAV estimates declined to 6%. |
Fundamental Analysis Balance Sheets Selectivity NAV Discount Conservative | |
| 2023 Q3 |
OnshoringThe fund identifies near-shoring as a developing theme with attractive investment opportunities. LSB Industries benefits from U.S. near-shoring through domestic fertilizer production, reducing transportation costs and environmental impact. The manager has dedicated analytical resources to capitalize on other near-shoring opportunities. |
Manufacturing Supply Chain Domestic Production Transportation Environmental |
FertilizersLSB Industries is positioned to benefit from expected 20% expansion of low-cost domestic capacity entering an undersupplied nitrogen fertilizer market. Secular demand increases are expected from rising ammonia-based fuel applications and expanding mining developments. Greenfield project delays favor existing brownfield operators like LSB. |
Nitrogen Ammonia Agricultural Mining Capacity | |
Carbon CaptureLSB Industries has advanced build-out of domestic carbon sequestration capabilities with no capital expenditure cost. The company is nearing its engineering objective of permanently sequestering over 450,000 metric tons of CO2 in saline formations, which can support royalty revenues and strategic partnerships. |
Sequestration CO2 Saline Royalties Environmental | |
EnergyEnergy was a considerable outperformer in the quarter, illustrating the potency of the investor pivot. Tidewater Inc., an offshore oil services company, rose 31% as investors recognized the importance of investing in fossil fuels for long-term economic growth and national security. |
Oil Services Offshore Fossil Fuels National Security Economic Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 27, 2026 | Fund Letters | Third Avenue Small-Cap Value Fund | - | Maximus, Inc. | Other | Research & Consulting Services | Bull | New York Stock Exchange | Artificial Intelligence, Cloud computing, consulting services, cybersecurity, Government Contractor, Healthcare IT, M&A Target, Share Buyback, technology, turnaround, Value | Login |
| Jul 27, 2026 | Fund Letters | Third Avenue Small-Cap Value Fund | TMHC | Taylor Morrison Home Corporation | Residential Construction | Homebuilding | Bull | New York Stock Exchange | Active Adult, asset-light, Berkshire Hathaway, Build-to-Rent, homebuilder, land development, M&A Exit, Real Estate, Share Buyback, Value | Login |
| Jul 27, 2026 | Fund Letters | Third Avenue Small-Cap Value Fund | CRAI | CRA International, Inc. | Consulting Services | Research & Consulting Services | Bull | NASDAQ | antitrust, Economic Consulting, Expert Services, Legal Consulting, Litigation Support, M&A Advisory, Management alignment, operating leverage, Share Buyback, Value | Login |
| Jan 22, 2026 | Fund Letters | Vic Cunningham | KALU | Kaiser Aluminum Corporation | Materials | Aluminum | Bull | NASDAQ | Aerospace, Aluminum, CapEx, manufacturing, Margins | Login |
| Jan 22, 2026 | Fund Letters | Vic Cunningham | COLL | Collegium Pharmaceutical, Inc. | Health Care | Pharmaceuticals | Bull | NASDAQ | buybacks, cashflow, earnings, Painmanagement, pharmaceuticals | Login |
| Jan 22, 2026 | Fund Letters | Vic Cunningham | ECPG | Encore Capital Group, Inc. | Financials | Consumer Finance | Bull | NASDAQ | cashflow, Collections, Credit, recovery, Specialty finance | Login |
| Jan 22, 2026 | Fund Letters | Vic Cunningham | UNF | UniFirst Corporation | Industrials | Diversified Support Services | Bear | New York Stock Exchange | Alignment, Governance, Takeovers, Uniforms, valuation | Login |
| Jan 22, 2026 | Fund Letters | Vic Cunningham | FLG | Flagstar Bank, N.A. | Financials | Regional Banks | Bull | New York Stock Exchange | banking, Bookvalue, Credit, restructuring, turnaround | Login |
| Oct 21, 2025 | Fund Letters | Vic Cunningham | AMBC | Ambac Financial Group Inc. | Financials | Insurance Brokers & Services | Bull | NYSE | acquisition, Capital-light, Insurance, Mga, Tax assets, transformation | Login |
| Oct 21, 2025 | Fund Letters | Vic Cunningham | AMBC | Ambac Financial Group Inc. | Financials | Insurance Brokers & Services | Bull | NYSE | acquisition, Capital-light, Insurance, Mga, Tax assets, transformation | Login |
| Oct 21, 2025 | Fund Letters | Vic Cunningham | BOISE | Boise Cascade Co. | Other | Building Materials | Bull | NYSE | Building materials, cash, consolidation, Housing, recovery | Login |
| Oct 21, 2025 | Fund Letters | Vic Cunningham | ROG | Rogers Corporation | Information Technology | Electronic Components | Bull | NYSE | Activism, Electronic materials, growth, Ip, Margins, restructuring | Login |
| Jul 25, 2025 | Fund Letters | Vic Cunningham | CTLP | Cantaloupe, Inc. | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | Automation, consolidation, Payments, premium, Privatization, Spreads, Transactions | Login |
| Jul 25, 2025 | Fund Letters | Vic Cunningham | SUPN | Supernus Pharmaceuticals, Inc. | Health Care | Pharmaceuticals | Bull | NASDAQ | acquisition, Depression, Integration, Netcash, Optionality, pharmaceuticals, Postpartum | Login |
| Jun 30, 2025 | Fund Letters | Third Avenue Small-Cap Value Fund | CTLP | Cantaloupe Inc. | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | Automation, consolidation, customer retention, Micro Markets, payment processing, private equity, Resource Conversion, SaaS, Telematic Patents, Unattended Retail, Vending | Login |
| Jun 30, 2025 | Fund Letters | Third Avenue Small-Cap Value Fund | VC | Visteon Corporation | Consumer Discretionary | Automotive Parts & Equipment | Bull | NASDAQ | AI Voice Assistants, Auto Supply, automotive technology, capital allocation, Cockpit Electronics, Digital Clusters, net cash, operating leverage, Share Buybacks, Tariff Concerns, technology adoption | Login |
| Apr 19, 2025 | Fund Letters | Third Avenue Small-Cap Value Fund | TIDE | Tidewater Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | contrarian, Cyclical, energy infrastructure, Marine services, Offshore, Oil & Gas Services, Support Vessels | Login |
| Apr 19, 2025 | Fund Letters | Third Avenue Small-Cap Value Fund | BXC | BlueLinx Holdings Inc. | Industrials | Trading Companies & Distributors | Bull | NYSE | Building Products, construction, Distribution, Housing, M&A Target, net cash, Operational Leverage, private equity | Login |
| Dec 31, 2024 | Fund Letters | Third Avenue Small-Cap Value Fund | OCFC | OceanFirst Financial | Financials | Regional Banks | Bull | NASDAQ | book value discount, commercial real estate, Consolidation Target, deposit base, Equity, investment grade, regional banks | Login |
| Dec 31, 2024 | Fund Letters | Third Avenue Small-Cap Value Fund | AMBC | Ambac Financial Group | Financials | Multi-line Insurance | Bull | NASDAQ | asset-light business, business transformation, Equity, Excess & Surplus, Managing General Agent, Multi-line Insurance, Resource Conversion, Tax Loss Carryforwards | Login |
| Dec 31, 2024 | Fund Letters | Third Avenue Small-Cap Value Fund | FPH | Five Point Holdings | Real Estate | Real Estate Development | Bull | NYSE | book value discount, California, Coastal Real Estate, Equity, land development, Mixed-use Communities, real estate development, turnaround | Login |
| Oct 15, 2024 | Fund Letters | Third Avenue Small-Cap Value Fund | SD | SandRidge Energy | Energy | Oil & Gas Exploration & Production | Bull | NYSE | acquisition strategy, Bankruptcy Recovery, dividend, energy, Exploration & Production, Free Cash Flow, Mid-Continent, net cash, Oil & Gas, PV-10 Valuation, small-cap, Tax Loss Carryforwards, Value | Login |
| Oct 15, 2024 | Fund Letters | Third Avenue Small-Cap Value Fund | PBF | PBF Energy | Energy | Oil & Gas Refining & Marketing | Bull | NYSE | asset sales, asymmetric risk-reward, deleveraging, dividend, energy, Free Cash Flow, Geographically Diversified, High-Complexity, Independent Refiner, Midcycle Earnings, net asset value, net cash, refining, share repurchase | Login |
| Dec 31, 2023 | Fund Letters | Third Avenue Small-Cap Value Fund | COLL | Collegium Pharmaceutical, Inc. | Health Care | Pharmaceuticals | Bull | NASDAQ | Abuse-deterrent, cash flow, healthcare, Opioids, Pain Management, pharmaceuticals, Specialty pharma, turnaround, Value | Login |
| Oct 13, 2023 | Fund Letters | Third Avenue Small-Cap Value Fund | LXU | LSB Industries | Materials | Fertilizers & Agricultural Chemicals | Bull | NYSE | Agricultural, Brownfield, Carbon Sequestration, Fertilizers, Mining, Near-shoring, Nitrogen Chemicals, Owner operator, USDA Grant, Value | Login |
| Oct 13, 2023 | Fund Letters | Third Avenue Small-Cap Value Fund | BATRK | Atlanta Braves Holdings | Communication Services | Entertainment | Bull | NASDAQ | arbitrage, entertainment, John Malone, Multiple Share Classes, Special Situation, spin-off, Sports Franchise, Technical Discount | Login |
| TICKER | COMMENTARY |
|---|---|
| MYRG | During the second quarter, Fund performance benefited from diversified sources across a range of sectors and companies, such as infrastructure engineering company MYR Group. |
| ECPG | During the second quarter, Fund performance benefited from diversified sources across a range of sectors and companies, such as consumer debt collection business Encore Capital. |
| UMBF | During the second quarter, Fund performance benefited from diversified sources across a range of sectors and companies, such as regional bank UMB Financial. |
| KALU | During the second quarter, Fund performance benefited from diversified sources across a range of sectors and companies, such as North American aluminum products manufacturer Kaiser Aluminum. |
| TDW | Companies detracting from Fund performance this quarter included offshore energy services company Tidewater. |
| LXU | Companies detracting from Fund performance this quarter included fertilizer producer LSB Industries. |
| SUPN | Companies detracting from Fund performance this quarter included pharmaceuticals company Supernus. Supernus Pharmaceuticals could be a wonderful tuck-in for a host of blue-chip healthcare behemoths looking to offset lost revenue from looming patent cliffs with Supernus' intellectual property, including promising neurology and central nervous system compounds. |
| SD | Companies detracting from Fund performance this quarter included oil and gas producer SandRidge Energy. |
| MMS | Maximus, Inc., headquartered in McLean Virginia, has over its fifty-year history grown to be one of the twenty largest government contractors, either public or private. This technology-forward consultant designs, owns and maintains the software stack for government entities, notably the IRS, the SEC's EDGAR filings database and real-time referencing of the TSA's 'no fly' list, to name a few. Despite Maximus' federal business revenue growing more than 8% in 2025, pessimism related the D.O.G.E. narratives have been unforgiving for Maximus' share price, as well as the broader government consulting industry. Further clouding the perception around Maximus in 2026 has been the lapses in government funding and generalized fear of artificial intelligence disintermediation. At the current valuation we believe there is an attractive opportunity to invest in a technology leader in its field, which provides considerable subject matter expertise and institutional knowledge in the design, implementation and administration of government programs. In addition to an absence of evidence of any operational impact related to the above-mentioned fears, management's recent operational guidance and very substantial share buyback authorization both inspire confidence. Furthermore, Maximus' management team also expressed confidence that operating margins will increase in 2026 due to its own internal use of artificial intelligence. One recent example is Maximus' Veterans Affairs benefits administration business. Maximus receives a wide array of medical records from various benefits providers in myriad hard copy and digital file formats. Maximus has recently built a unique capability to harmonize unstructured data into uniform entries and now processes ten million pages of medical records every day in the Amazon cloud. Improving technological capabilities allows Maximus to process faster and more accurately, resulting in significantly reduced headcount and cost. Going forward, we believe the pessimism overhanging Maximus can be alleviated by the renewal of its Veterans Affairs benefits contract, which relies on a difficult to replicate nationwide network of medical providers. Additionally, the company was recently awarded a large new contract with the U.S. Air Force for cyber security consulting work, an impressive validation by one of the most sophisticated clients in the world and a potential beachhead from which to expand their expertise into larger active military benefits programs. Several looming developments could also provide a tailwind for Maximus in the medium-term, such as the implementation of the One Big Beautiful Bill Act which includes changes to Medicaid work requirements, SNAP (food stamp) benefits and the processing of unemployment claims. The changes around proof of employment, along with multiple redetermination checkpoints, may offer Maximus an opportunity to expand its scope of work under existing service contracts. In short, Maximus appears to have credible in-house artificial intelligence capabilities and a degree of embedded business resilience that belies its beaten down share price. Further, the attractive attributes of its business, in combination with large amounts of pessimism embedded in its valuation, may eventually lead to a potential business combination with any number of strategic partners, such as a larger consultant, cloud companies, or possibly a defense contractor. |
| CPRX | In May, Catalyst Pharmaceuticals agreed to be purchased by Italian pharmaceuticals company, Angelini Pharma, in an all-cash transaction. While both were relatively recent purchases for the Fund, both positions made important contributions to Fund performance in the first six months of 2026. |
| TMHC | Taylor Morrison Home Corporation is the fifth largest U.S. homebuilder and land developer. With operations spanning twelve states, the company is well respected for the quality of its product and its management team. The core Taylor Morrison brand serves entry-level and move-up buyers, while the company's Yardly segment operates as a build-to-rent platform in nine markets. The company also caters to the premium resort-lifestyle and active-adult segment through its Esplanade offering. Prior to its recent strong appreciation, Taylor Morrison's valuation seemed incommensurate with its underlying business value. The company also bore some similarities to former Fund holding Tri Pointe Homes regarding the strength of its asset quality, including a strategically located land bank with an attractive cost basis and a strong position in attractive customer segments. Taylor Morrison is also extremely well-financed and the company has been an aggressive buyer of its own stock at attractive prices. The combination of opportunistic buybacks, consistent profitability and reduced capital intensity, due to a shift to a more asset light operating model, has led to the compounding of book value per share at impressive rates. Yet, shortly after our purchase, the company announced that it had reached an agreement to be purchased by Berkshire Hathaway. Berkshire, presumably appreciating the strategic merits and discounted valuation we described above, offered a premium of slightly more than 25% to acquire the company, adding to its existing homebuilding operations. While we intended to own Taylor Morrison for years into the future, and we perceive Berkshire to be acquiring the company at an attractive valuation, we have had a brief but successful investment, and we wish Berkshire and Taylor Morrison's management team future success together. |
| UNF | Six Fund holdings have agreed to be taken over during the last six quarters by a range of buyer types; domestic strategic, foreign strategic and private equity. UniFirst Corporation was taken over in March 2026 by a strategic buyer. |
| TPH | Six Fund holdings have agreed to be taken over during the last six quarters by a range of buyer types; domestic strategic, foreign strategic and private equity. Tri Pointe Homes was taken over in February 2026 by a strategic buyer. The Fund exited two positions during the quarter as the takeovers of Tri Pointe Homes and ProAssurance Corporation were completed, which is typically our preferred method of exit. |
| PRA | Six Fund holdings have agreed to be taken over during the last six quarters by a range of buyer types; domestic strategic, foreign strategic and private equity. ProAssurance Corporation was taken over in March 2025 by a strategic buyer. The Fund exited two positions during the quarter as the takeovers of Tri Pointe Homes and ProAssurance Corporation were completed, which is typically our preferred method of exit. |
| PB | The Fund holds several regional bank investments, an area of robust merger and takeover activity. Prosperity Bancshares, for example, holds an interesting strategic position in one of the country's most attractive banking markets, Texas. |
| BCC | The Fund has also recently established positions in deeply depressed building products distribution companies Boise Cascade and BlueLinx Holdings. Building products and building products distribution have long been consolidating industries, though the trend appears to be accelerating and, given strategically located nationwide networks of logistically well-connected distribution facilities, it would be easy to understand an acquirer's attraction to either company. |
| BXC | The Fund has also recently established positions in deeply depressed building products distribution companies Boise Cascade and BlueLinx Holdings. Building products and building products distribution have long been consolidating industries, though the trend appears to be accelerating and, given strategically located nationwide networks of logistically well-connected distribution facilities, it would be easy to understand an acquirer's attraction to either company. |
| CRAI | CRA International, Inc., which operates under the brand Charles River Associates, is a global consulting firm specializing in economic, financial, and management consulting. Founded in 1965 and headquartered in Boston, many of CRA's senior staff are globally recognized experts in their fields, which focus on large-scale merger and acquisition consulting, anti-trust actions, major regulatory and litigation matters and complex strategic issues. CRA is a 'go-to' industry leader in the legal consulting arena and has worked on engagements with 98 of the top 100 global law firms over the past two years. Despite strong demand for antitrust services and increased scrutiny of certain industries, contemplation of the potential future impacts of artificial intelligence have significantly impacted the company's share price. This backdrop has provided the Fund an opportunity to initiate a position after years of following the company from the sidelines. Highly credible consulting services, which represent minimal expenses within the context of multi-billion mergers, seem an ill-advised area in which to pursue nominal cost savings in exchange for incurring significant legal and deal-completion risk. CRA's established credibility, in tandem with constantly evolving expert analysis, often helps shape how courts define market competition and quantify potential merger impacts to consumers. This has emerged as a more pivotal part of the merger and acquisition processes than ever and appears poised to resist displacement from artificial intelligence while also supporting deal-related demand growth as developing technologies produce evolving market definitions and increased global scrutiny. Going forward, we believe the sentiment overhang, as well as an accounting treatment for certain forms of employee compensation that periodically depresses the reported earnings of the business without an impact upon the genuine underlying cash economics of the business, have created an attractive entry point for long-term shareholders. We believe the company is prudently investing in expanding its business and preparing for the future. In the meantime, today CRA maintains a strong balance sheet and has historically compounded the value of its business at attractive rates over long periods of time. CRA's management team appears to be well aligned with shareholders who benefit from having the continuity of a seventeen-year veteran CEO at the helm who also owns a sizeable ownership stake. The company appears to manage its capital sensibly and has a historical track record of shrinking its share count by an annual rate of approximately 3% per year over the past decade. Should a further pickup in M&A volume occur, we believe the operating leverage of the business can be put on full display and meaningfully reward shareholders. |
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