| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.47% | 7.78% | 7.78% |
Third Avenue's Small-Cap Value Fund returned 7.85% in Q1 2026, outperforming the MSCI USA Small Cap Value Index's 2.93% return. Performance was driven by energy-related holdings benefiting from Middle East disruption, including fertilizer producer LSB Industries and refinery operator PBF Energy. The fund initiated five new positions including cybersecurity company Qualys and staffing firm Robert Half, while exiting Cantaloupe Inc. The managers emphasize that small-cap equities remain exceptionally inexpensive versus large-caps despite recent outperformance, and rising stock dispersion creates favorable conditions for active strategies. Key themes include AI disruption creating winners and losers across sectors, energy market volatility from geopolitical tensions, and rolling pockets of opportunity from various market dislocations. The portfolio construction focuses on variegated return drivers beyond simple industry classifications, seeking businesses that can benefit from periodic disruption while performing adequately in normal conditions. The fund completed successful exits through acquisitions of Unifirst by Cintas and Tri Pointe Homes by Sumitomo Forestry.
Active small-cap value investing benefits from rising stock dispersion, small-cap relative cheapness, and rolling pockets of market dislocation that create asymmetric opportunities through fundamental analysis and contrarian positioning.
The managers expect continued opportunities from rolling pockets of crisis and market dislocation. They believe higher dispersion of equity price movements and small-cap relative strength create favorable conditions for their active fundamental strategy. The approach focuses on identifying areas where pessimism has created asymmetric investment opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 |
| 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 |
| 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 |
|---|---|
| LXU | Leading performance contributor LSB Industries benefited from global gas disruption, rising prices and potentially serious impacts to the global fertilizer supply. |
| TDW | Tidewater was a leading contributor to performance during quarter, with the vast majority of the return occurring before U.S. military action in Iran. Tidewater performed particularly well in response to its acquisition of a fleet of Brazilian supply vessels, a well-conceived, countercyclical business building transaction and the third such transaction Tidewater has executed upon in recent years. |
| ECPG | Strong contributions from consumer debt collection business Encore Capital Group aided Fund performance during the quarter. |
| PBF | Refinery operator PBF Energy was among those providing strong contributions to Fund performance. The currently disrupted environment is very desirable for refining company PBF Energy in many ways, benefiting from disruption to Middle East oil and gas flows and damage to Middle East processing assets creating wider pricing differentials and wider crack spreads. |
| TPH | Homebuilder Tri Pointe Homes provided strong contributions to Fund performance and agreed to be acquired by Sumitomo Forestry, one of several Japanese homebuilders that have been making increasing forays into the U.S. homebuilding market. We felt the price paid was attractive and were supportive of the sale. |
| UNF | After an extremely long and contentious courting period, long-time Fund holding Unifirst finally agreed to be acquired by much larger competitor, Cintas. The Cintas offer was very attractive from the perspective of a Unifirst shareholder. We were pleased that the board accepted the offer in recognition that the purchase price exceeded any level of shareholder wealth they were likely to be able to create independently. |
| QLYS | Qualys, Inc is an established, growing, and highly profitable cybersecurity company and the largest of three leading specialized vendors of vulnerability management software. The recent equity market dislocation of wide swaths of the software industry has provided an opportunity for the Fund to invest in a very well-financed business that appears well positioned to not only survive but potentially thrive in the new A.I. environment. Qualys is undeniably well financed, with no debt and a cash war chest of nearly $700 million, relative to its $3 billion market capitalization. |
| COMP | Compass, Inc is a technology enabled residential real estate brokerage focused on the luxury and upper-middle segments of the U.S. housing market. Compass has been pressured by a combination of higher mortgage rates, affordability challenges and constrained housing inventory, weighing on transaction volumes and commission revenue across the industry. Compass' recent transformational merger with Anywhere Real Estate creates the largest residential real estate platform globally, expands Compass's agent and brand footprint and diversifies revenue through recurrent high margin franchise, title, escrow, and relocation revenue streams. |
| HOG | Harley-Davidson, Inc manufactures motorcycles and accessories, sells financial services and earns licensing revenue. While its brand remains iconic, its core motorcycle market in the U.S., and the heavyweight bikes in which Harley-Davidson specializes, have suffered several years of sales declines. The last several years have also been marked by multiple activist campaigns, board turnover, management changes and string of strategic missteps. Harley-Davidson's electric motorcycle venture, LiveWire, has been a significant drag on Harley-Davidson since its birth and electric motorcycle sales have fallen stunningly short of expectations. |
| CPRX | Catalyst Pharmaceuticals, Inc is a biopharmaceutical company that has achieved long-running profitability and a sizeable and growing cash balance. The company embodies what our team sometimes refers to as an owner-operator approach through its buy-and-build strategy to create long-term shareholder wealth by acquiring and integrating orphan-designated assets. Today, Catalyst's most significant growth asset is a drug called Firdapse, which is the only approved drug in the U.S. to treat LEMS (Lambert-Eaton Myasthenic Syndrome). |
| RHI | Robert Half Inc is a professional staffing company specializing in temporary placements in the fields of finance and accounting, technology, and administrative and customer support. The U.S. staffing industry has experienced three consecutive years of muted activity following a period of unusually strong labor demand during and after the pandemic. Beyond cyclical pressures, current investor concerns center on the potential for artificial intelligence to reduce demand for certain roles and automate aspects of the recruiting process. |
| SD | SandRidge Energy, an oil and gas producer, was also a beneficiary of rising disruption to Middle East energy transportation during the quarter and has the most direct connection to higher energy prices. |
| KALU | Kaiser Aluminum is also a beneficiary of impediments to U.S. metal imports. All four investments performed well during a quarter which was marked by disruption to normal operations of their respective industries. |
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