| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.02% | 1.25% | 8.63% |
Third Avenue Value Fund returned 1.25% in Q2 2026, trailing broad indices as markets favored semiconductors and AI speculation while the Fund remained positioned in out-of-favor global value opportunities. The portfolio's core thesis centers on acquiring well-financed companies with strategic tangible assets at discounts to replacement value. Key holdings include offshore energy services companies Tidewater and Valaris, which declined on Iran peace hopes but whose thesis strengthened as governments prioritize energy security and face years of rebuilding depleted strategic oil reserves. Japanese semiconductor equipment makers JEOL and Horiba gained as markets recognized critical supply chain chokepoints. Copper miners Lundin and Capstone offer exposure to underappreciated supply shortages. Two holdings received takeover approaches during the quarter: easyJet from asset-based investor Castlelake, and Paltac from parent Medipal at a 40% premium. The Fund initiated thyssenkrupp, a catalyst-rich German conglomerate executing multi-year transformation through business unit spin-offs. Manager maintains conviction in tangible asset-backed value investing despite near-term relative underperformance, viewing current positioning as offering downside protection and multiple paths to wealth creation.
Third Avenue Value Fund invests in out-of-favor companies with valuable, difficult-to-replicate tangible asset portfolios trading at deep discounts to replacement value, providing downside protection and creating multiple paths to shareholder wealth including ordinary business income and resource conversion through takeovers or corporate actions.
Manager expects governments' focus on energy security to be an enduring trend that will add pace and amplitude to the cyclical recovery already building in offshore energy services. Global strategic oil reserves will need to be replenished over multiple years, adding incremental demand. The Fund continues to focus on well-financed companies owning strategic tangible assets at discounted valuations, which offer downside protection and increased probability of wealth creation through resource conversion including potential takeover premiums.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 16 2026 | 2026 Q2 | 5233.T, 6823.T, 6951.T, 8283.T, AYCOF, BMW.DE, BZU, CSFFF, CSUAY, ESYJY, HBR.L, HOG, JCYCF, LUNMF, MPHLF, RHI, SSVSF, TDW, TKAMY, VAL | Copper, Energy Services, global, Japan, semiconductors, special situations, tangible assets, value |
ESYJY TKAMY |
Third Avenue Value Fund underperformed in Q2 2026 as markets chased semiconductors and AI while the Fund stayed disciplined in out-of-favor tangible asset plays. Core holdings in offshore energy services, copper mining, and Japanese industrials offer deep value with catalysts including energy security trends, supply shortages, and corporate restructurings. Two takeover bids validated the asset-backed approach. Manager sees multiple paths to wealth creation from current discounted positioning. |
| Apr 22 2026 | 2026 Q1 | 1 HK, 5726.T, HOG, RHI, TDW, VAL | Consolidation, energy, Geopolitical, global, Iran, Offshore, small cap, value |
HOG RHI |
Third Avenue Value Fund delivered 7.28% returns in Q1 2026, significantly outperforming markets as energy holdings surged amid Iran conflict disrupting global oil flows. Manager Fine maintains contrarian value approach, buying undervalued, well-capitalized businesses facing headwinds. Fund expects lasting energy security focus to benefit offshore drilling companies while continuing to find opportunities in market dislocations. |
| Jan 22 2026 | 2025 Q4 | 0001.HK, 2603.TW, 6951.T, 6955.T, BIRG.L, BMW.DE, BZU.MI, CMA, CS, DB, HBR.L, HCC, IFP.TO, LUN.TO, SFOR.L, SSUB.OL, SUBCY, TDW, VAL | Banking, Copper, energy, Europe, Mining, Resource Conversion, value | - | Third Avenue Value Fund delivered strong Q4 and full-year performance driven by copper miners and European banks. Mining companies benefited from growing appreciation of copper's indispensable role in electrification and data center buildouts amid persistent supply challenges. Resource conversion activity across portfolio companies created additional value through strategic transactions, asset sales, and capital returns to shareholders. |
| Oct 21 2025 | 2025 Q3 | 7270.T, AC.TO, BCC, BIRG, BMW.DE, BZU.MI, CBG.L, CSTCF, DB, EZJ.L, HCC, HEI, IFP.TO, LUN.TO, MBG.DE, ORI, ROG, S4C.L, UGPA3.SA | Banking, contrarian, Copper, Europe, Forecasting, Mining, value |
CS LUN HBR OR DBK BOISE ROG AC |
Third Avenue Value Fund delivered 11.85% in Q3 2025, driven by copper miners benefiting from supply disruptions and European banks despite reducing European exposure. The contrarian approach of buying financially durable companies at depressed valuations continues to generate strong returns, with new positions in cyclically challenged building materials companies while harvesting gains from successful turnaround stories. |
| Jul 22 2025 | 2025 Q2 | 1418.T, 5233.T, 6856.T, 7270.T, 8283.T, BIRG.L, BMW.DE, BZU.MI, CKH.L, CMCL.L, CRE.L, DB, EZJ.L, HCC, IFP.TO, ORI, SFOR.L, TDW | Copper, diversification, Japan, Reinsurance, small caps, valuation, value |
CRE LN CDRE.L |
Third Avenue Value Fund delivered 9.46% in Q2 2025, outperforming value indices while warning of dangerous U.S. mega-cap concentration. The Fund's 16% Japanese allocation targets undervalued, well-capitalized companies benefiting from governance reforms. New reinsurance position and copper miners drive performance. Manager advocates price-conscious diversification away from historically expensive U.S. large-caps toward global value opportunities. |
| Mar 31 2025 | 2025 Q1 | 5285.T, 6856.T, 6951.T, 7270.T, BIRG.L, BMW.DE, CBG.L, CSCU.TO, DB, EZJ.L, G13.SI, HBR.L, HCC, ORI, SFOR.L, SUBC.OL, TDW, VAL | defense, energy, Europe, inflation, Japan, tariffs, Trade Policy, value | 6951.T | Third Avenue Value Fund gained 2.95% in Q1 2025 driven by European and Japanese holdings. The manager views the global tariff war as an economic mistake creating stagflationary risks and trust breakdown. Portfolio deployed cash selectively, initiating JEOL position and adding to energy services at attractive prices. Maintains contrarian value approach focused on strongly financed companies trading at significant discounts. |
| Jan 28 2025 | 2024 Q4 | 6856.T, 7270.T, 7433.T, AAPL, AMZN, BIRG.L, BMW.DE, BZU.MI, CBG.L, CMA, CS.TO, DB, EZJ.L, GOOGL, HCC, HRB.L, LAZ, LUN.TO, MBG.DE, META, MSFT, NVDA, ORI, SUBCY, TDW, TSLA, UGP | Active Share, Autos, Concentration, global, small caps, value |
BMW.DE MBG.DE 7270.T |
Third Avenue Value Fund's concentrated global value strategy underperformed in Q4 as markets favored momentum over fundamentals. The fund maintains historic low U.S. exposure while building positions in undervalued automakers like BMW trading at 6.4x earnings despite strong cash generation. Manager sees unprecedented market concentration and speculative activity as validation of contrarian positioning in quality companies at distressed valuations. |
| Sep 30 2024 | 2024 Q3 | 6856.T, 7270.T, BIRG, BMW.DE, BZU.MI, CKHUY, CMA, CPSCF, DB, EZJ.L, LAZ, MBG.DE, SUBCY, TDW, TM, VAL, WMC | Autos, Buybacks, global, Offshore Energy, undervaluation, value | 7270.T | Third Avenue Value Fund targets deeply undervalued global companies, particularly in automotive and offshore energy services. Manager believes massive flows to passive strategies have broken price discovery, creating persistent valuation spreads. Holdings like BMW and Subaru trade at extreme discounts despite strong fundamentals. Expects value investing cycle to eventually reverse, similar to late 1990s experience. |
| Jul 19 2024 | 2024 Q2 | 6856.T, 7433.T, BIRG.L, BMW.DE, BZU.MI, CBG.L, CSAV.SN, CSTCF, DB, EZJ.L, HA, HBRG.L, HCC, LUMI.TO, SFOR.L, SUBCY, TDW, UGP, VAL | Balance Sheet, Banking, Financial Wherewithal, Japan, rates, value |
7433.T CBG.L |
Third Avenue Value Fund's balance sheet-focused approach positions it well as the era of falling interest rates ends. The fund added Japanese distributor Paltac and UK bank Close Brothers, both offering value opportunities with strong financial wherewithal. After decades of headwinds from falling rates favoring leveraged strategies, the fund expects relative outperformance ahead. |
| May 7 2024 | 2024 Q1 | 6856.T, BIRG.L, BMW.DE, BZU.MI, C6B.SI, CAPS.TO, DB, EZJ.L, G13.SI, HBR.L, HCC, IFP.TO, LUN.TO, MBG.DE, ORI, SFOR.L, SUBC.OL, TDW, VAL | Banking, Buybacks, contrarian, Copper, dividends, Europe, value |
BOIG.L HBR.L |
Third Avenue Value Fund delivered 8.58% returns in Q1 2024, led by copper miners validating supply shortage thesis and financial companies benefiting from normalized rates. Portfolio companies are generating substantial shareholder returns through dividends and buybacks due to overcapitalization and discounted valuations. Manager sees attractive opportunities as value investing becomes less competitive amid industry growth focus. |
| Jan 31 2024 | 2023 Q4 | ASHM.L, BIRG.L, BMW.DE, BOLSAA.MX, BZU.MI, CMA, CS.TO, DB, EZJ.L, HMC.T, HMT, HTHPF, SFOR.L, SUBCY, TDW, UGPA3.SA, VAL | Banking, Buybacks, Electric Vehicles, global, interest rates, value |
S4C.L CMA BMW.DE BOLSAA.MX |
Third Avenue Value Fund delivered 20.16% in 2023 while maintaining an 8.2x P/E ratio, demonstrating strong value discipline. The manager challenges rate-growth correlations, added to regional banks during crisis, and sees BMW as exemplifying attractive value at 6.1x earnings with massive cash position. Lower rates ahead could benefit value strategies. |
| Oct 25 2023 | 2023 Q3 | BIRG.L, BMW.DE, CS.TO, DB, EZJ.L, HCC, SUBCY, TDW, UGP, VAL | Coal, contrarian, Cyclical, distressed, energy, Offshore, value | - | Third Avenue Value Fund targets companies with distressed valuations but sound fundamentals, emphasizing contrarian opportunities where sentiment has become excessively pessimistic. The portfolio trades at 6x earnings with significant energy and materials exposure. Recent trimming increased cash to 17% while the manager sees favorable conditions for value investing given wide valuation spreads. |
| Jan 15 2023 | 2022 Q4 | - | - | - | |
| Oct 25 2022 | 2022 Q3 | ESYJY | - | - | |
| Jun 30 2022 | 2022 Q2 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
SemiconductorsManager owns Japanese semiconductor equipment makers JEOL and Horiba, viewing them as critical chokepoints in the supply chain. JEOL's critical nature within cutting-edge semiconductor manufacturing is finally being recognized. These smaller but essential suppliers operate in highly concentrated industries and were purchased at modest prices compared to chip manufacturers. |
Semi Equipment Japan Supply Chain Capital Equipment |
Offshore EnergyFund holds Tidewater (platform supply vessels), Valaris (offshore drilling rigs), and Harbour Energy (oil/gas producer). Manager views recent share price weakness as knee-jerk reaction to potential Iran peace. Thesis strengthened by governments' focus on energy security, unprecedented global oil inventory drawdowns requiring years to rebuild, and critical role of long-life offshore supplies in future energy security. |
Oil Services Offshore Drilling Energy Security Exploration & Production | |
CopperFund owns Lundin Mining and Capstone Copper, viewing high-quality copper mining assets as strategic and nearly impossible to replicate. Manager believes looming global copper supply shortages relative to secularly growing demand remain underappreciated. Lundin's Vicuna project likely represents the world's most important copper development for the next decade. |
Copper Copper Miners Critical Minerals Supply Shortage | |
Tangible AssetsCore investment philosophy emphasizing companies with valuable, difficult-to-replicate tangible asset portfolios (aircraft fleets, distribution warehouses, mining assets, cement/aggregates facilities). These assets provide downside protection, ease of valuation, and attract takeover bids when share prices are depressed relative to replacement value. Recent examples include easyJet and Paltac takeover approaches. |
Value Asset-Backed Downside Protection Resource Conversion | |
JapanFund owns multiple Japanese companies including JEOL, Horiba, Paltac, Taiheiyo Cement, and Subaru. Manager highlights evolving pressures on Japanese management to improve capital allocation, reduce cross-shareholdings, and simplify corporate structures. Paltac takeover by parent Medipal exemplifies this trend gaining momentum. |
Japan Corporate Governance Capital Allocation Cross-Holdings | |
Building MaterialsFund owns U.S. cement and aggregates assets through non-U.S. companies Buzzi and Taiheiyo Cement at deeply discounted valuations. Manager notes many strategic transactions have occurred in this sector and views these tangible production assets as very difficult to replicate. |
Cement Aggregates Building Materials Strategic Assets | |
| 2026 Q1 |
EnergyFund's energy holdings (Valaris, Tidewater, Harbour Energy, Subsea 7) were top performers during quarter. Iran conflict disrupted 20% of global oil flows through Strait of Hormuz, creating unprecedented energy supply crisis. Manager expects lasting focus on energy security to accelerate deepwater drilling activity globally. |
Oil Offshore Drilling Energy Security Geopolitical Risk Supply Disruption |
ValueManager maintains core philosophy of buying grey clouds and selling sunshine - purchasing undervalued, well-capitalized businesses facing headwinds. Approach focuses on underpaying for businesses to protect against permanent capital impairment while positioning for long-term wealth creation. |
Undervaluation Contrarian Capital Protection Long-term | |
Geopolitical RiskIran military conflict created unprecedented disruption to global energy flows. Manager navigating unique situation comparable to COVID outbreak. Geopolitical tensions affecting capital flows, currency movements, and energy security considerations globally. |
Iran Military Conflict Energy Security Global Disruption | |
Critical MineralsNew position in OSAKA Titanium Technologies reflects opportunity in titanium supply chain as Western aerospace industry reduces Russian dependency. Company positioned to benefit from supply chain reshoring and capacity expansion completing in 2028. |
Titanium Supply Chain Aerospace Russian Sanctions | |
ConsolidationMultiple portfolio companies involved in industry consolidation transactions. Valaris subject to Transocean takeover, Subsea 7 being acquired, Tidewater making strategic acquisitions. Well-capitalized companies using financial strength for value-creating transactions. |
M&A Industry Consolidation Capital Allocation | |
| 2025 Q4 |
AIAI was a dominant market driver of U.S. stocks and continues to influence market leadership. The AI-driven rally led to historic levels of market concentration with just five stocks accounting for nearly 45% of the S&P 500's total return in 2025. Strong AI-related investment was the backbone of U.S. growth in 2025. |
Artificial Intelligence Technology Market Concentration Growth Innovation |
RatesThe Federal Reserve has cut interest rates 1.75% since 2024, easing financial conditions and supporting markets. The Fed resumed rate cuts in September and markets expect further easing into 2026, albeit at a slower pace. Historically, equities have responded favorably following the restart of easing cycles. |
Federal Reserve Interest Rates Monetary Policy Easing Financial Conditions | |
InflationThe inflation storm that dominated recent years appeared to be easing, at least in the short term. November and December inflation surprised to the downside, easing investor concerns about persistent inflation pressures. However, inflation is likely to remain above target near term. |
Inflation Federal Reserve Economic Data Price Pressures | |
| 2025 Q3 |
CopperCopper prices have benefited from increasingly tight global supplies, a weak U.S. dollar, breakdown of trust in global trading norms, and operational disruptions at several large copper mines. These dynamics have benefited holdings like Capstone Copper and Lundin Mining, with rising gold prices also helping copper miners that produce gold as a byproduct. |
Copper Miners Supply Gold Mining Commodities |
ValueThe fund employs a contrarian value approach described as buying grey clouds and selling sunshine, focusing on well-financed companies with financial durability trading at depressed valuations. The approach emphasizes expected value frameworks over single-point estimates and seeks asymmetric investment opportunities. |
Contrarian Undervalued Financial Durability Asymmetry Expected Value | |
CoalWarrior Met Coal was a top contributor during the quarter, with its Blue Creek project beginning production and expected to reach full run-rate in the first half of 2026. At full production, Blue Creek will bring a major step change in production volumes and operate at world-class production costs. |
Metallurgical Coal Production Capital Spending Mining | |
| 2025 Q2 |
ValueManager emphasizes price-conscious investing approach, seeking securities at meaningful discounts to business value. Criticizes current U.S. mega-cap valuations and advocates for diversification away from expensive stocks toward undervalued opportunities. |
Valuation Discount Price-conscious Undervalued CAPE |
JapanFund holds approximately 16% in Japanese companies trading at distressed valuations despite excellent operational health. Manager highlights improving corporate governance pressures and activist campaigns creating potential value catalysts. |
Corporate governance Activist Overcapitalized TSE GPIF | |
CopperFund holds positions in copper mining companies Lundin Mining and Capstone Copper, which contributed positively to quarterly performance. Copper exposure reflects commodity positioning within the value framework. |
Mining Commodities Capstone Lundin | |
ReinsuranceInitiated new position in Conduit Holdings, a Bermuda-based reinsurance company trading at significant discount to book value following elevated loss events. Manager sees opportunity for valuation recovery and book value compounding. |
Insurance Hard market Book value Underwriting | |
| 2025 Q1 |
Trade PolicyThe manager extensively discusses the global tariff war initiated on Liberation Day (April 2, 2025), describing it as an economic mistake with lasting negative implications. He analyzes the reciprocal tariff structure, challenges of eliminating trade deficits, and the breakdown of trust and predictability affecting corporate investment decisions. |
Tariffs Trade War Reciprocal Deficits Isolationism |
Defense SpendingThe manager notes rising European defense spending as NATO alliances weaken and European governments accelerate military self-reliance due to uncertainty about U.S. partnership. He describes this as a consequence of degraded trust and the expensive nature of isolationism. |
NATO Military Self-reliance European Cooperation | |
Critical MineralsThe manager discusses resource nationalism and strategic stockpiling of critical materials like copper, cobalt, and rare earths. He highlights geopolitical tensions around mineral resources in DRC, Ukraine, and Latin America, noting how disruptions to free trade lead to higher prices and supply vulnerabilities. |
Copper Cobalt Stockpiling Nationalism Supply | |
InflationThe manager warns of lasting inflationary pressures from tariffs, supply chain disruptions, resource nationalism, and increased defense spending. He notes that consumers don't distinguish between high inflation and high prices, and warns of the risk of embedded inflationary expectations. |
Prices Tariffs Supply Chain Embedded Expectations | |
SemiconductorsThe manager initiated a position in JEOL, a Japanese semiconductor equipment company with exposure to EUV lithography and multi-beam mask writers. Despite near-term headwinds from slower EUV adoption, he sees attractive longer-term growth prospects in the semiconductor capital equipment cycle. |
EUV Lithography Equipment JEOL Mask Writers | |
EnergyThe manager discusses energy self-reliance as a cousin to military self-reliance, noting how Europe's dependence on Russian gas created vulnerabilities. He sees potential for U.K. policy reversals on energy windfall taxes to spur domestic investment and benefit holdings like Harbour Energy, Tidewater, and Valaris. |
Self-reliance Windfall Tax North Sea Investment Security | |
| 2024 Q4 |
AutosThe fund has significant exposure to traditional automakers BMW, Mercedes-Benz, and Subaru, which the manager views as extremely undervalued despite facing challenges from higher interest rates, electric vehicle transition, Chinese competition, and potential tariffs. The manager argues these companies are adapting well and trading at distressed valuations despite strong fundamentals. |
Electric Vehicles Battery Supply Chain Trade Policy Value China |
ValueThe fund pursues undervalued securities globally with 99% active share and concentrated positioning. The manager emphasizes finding attractive value outside the United States where valuations have become stretched, particularly among larger companies. |
Small Caps Quality Global Concentration | |
| 2024 Q3 |
ValueManager discusses the persistent valuation chasm between cheap and expensive companies in U.S. equity markets, noting that multiples assigned to the least expensive quartile actually declined from 2014-2024. The fund continues to find attractive value in several automotive industry OEMs and other sectors despite the challenging environment for value investing. |
Valuation Spreads Undervaluation Multiples Cheap |
AutosThe fund holds positions in BMW, Mercedes-Benz Group, and newly added Subaru Corporation. Manager views automotive OEMs as extremely well-capitalized, inexplicably cheap, and offering attractive value. Subaru trades at virtually zero value for its car-making business despite strong profitability and $10 billion in net cash. |
BMW Mercedes Subaru OEMs Automotive | |
BuybacksManager discusses how cheap stock prices signal to managements that capital reinvestment may be less attractive than share buybacks and dividend distributions. Many current fund holdings trade at 5-6x earnings and distribute bulk of earnings to shareholders, potentially driving superior returns even without multiple rerating. |
Share Repurchases Capital Allocation Distributions Shareholder Returns Dividends | |
| 2024 Q2 |
ValueThe fund employs a balance sheet-focused value investing approach emphasizing financial wherewithal, seeking companies that can endure challenges without value-destructive activities. This approach has produced 220 basis points of outperformance relative to the MSCI World Index since inception 34 years ago. |
Balance Sheet Financial Wherewithal Undervalued Safe And Cheap Distressed |
RatesThe manager discusses how four decades of falling interest rates created tailwinds for leveraged strategies while acting as a headwind for balance sheet-focused approaches. With the era of ever-falling rates now behind us, the fund's approach may benefit relatively. |
Interest Rates Fed Policy Monetary Policy Credit Environment Borrowing Costs | |
JapanThe fund initiated a position in Paltac, Japan's largest distributor of health and beauty products, citing corporate governance pressures from the Tokyo Stock Exchange and the company's overcapitalized balance sheet with potential for improved shareholder returns. |
Corporate Governance Tokyo Stock Exchange Distribution Shareholder Returns Overcapitalized | |
| 2024 Q1 |
ValueFund focuses on buying significantly undervalued, well-financed businesses run by honest and competent people. Manager emphasizes price-conscious, fundamental value investing approach that has become less competitive due to industry shift toward growth strategies. |
Undervalued Price-conscious Contrarian Balance sheet Liquidation value |
CopperStrong performance from copper mining companies Capstone Copper and Lundin Mining. Manager maintains thesis that challenging supply situation combined with increasing demand will manifest in supply shortages, decreasing inventories, and higher copper prices. |
Supply shortage Mining Demand growth Inventories Price appreciation | |
BuybacksMultiple portfolio companies implementing substantial share buyback programs due to overcapitalization and shares trading below book value. Examples include Deutsche Bank and Mercedes-Benz Group buying back shares at significant discounts to intrinsic value. |
Share repurchases Overcapitalized Book value discount Capital allocation Shareholder returns | |
DividendsPortfolio companies generating large and growing shareholder distributions. Bank of Ireland targeting 72% of earnings as dividends and buybacks, Deutsche Bank planning successive 50% dividend increases, Mercedes committing to pay out virtually 100% of free cash flow. |
Capital returns Payout ratios Cash flow distribution Shareholder yield Dividend growth | |
| 2023 Q4 |
ValueThe Fund carried a weighted average price to earnings ratio of approximately 8.2x as of year-end, positioning in attractive businesses without relaxing criteria for balance sheet strength or liquidity. The manager highlights how cheap stocks have become even cheaper while expensive stocks experienced valuation expansion. |
Valuation Cheapness Multiple Earnings |
RatesExtensive discussion of interest rate impacts across industries, particularly banking. The manager argues against conventional wisdom linking low rates to growth investing, noting correlations can break down unpredictably and that value strategies may benefit from lower rates going forward. |
Interest Banking Correlation Fed | |
Electric VehiclesAnalysis of BMW's competitive position in the electric vehicle transition, noting slowing EV sales growth and high dependency on government subsidies. BMW and Mercedes-Benz have been growing battery electric vehicle volumes faster than Tesla in recent quarters. |
Tesla Battery Subsidies Adoption | |
Regional BanksDetailed analysis of U.S. regional banking sector challenges, including duration risk exposure and deposit flight during Spring 2023 panic. The manager added to Comerica holdings during the crisis and sees potential benefits from lower interest rates ahead. |
Duration Deposits Crisis Recovery | |
BuybacksBMW approved EUR 2 billion buybacks in both 2022 and 2023 while maintaining strong cash balances. The company's impressive operational cash flow has enabled continued growth in cash despite significant capital allocation to dividends and repurchases. |
Repurchases Cash Capital Returns | |
| 2023 Q3 |
ValueThe fund focuses on identifying companies trading at distressed valuations without actual operating or financial distress. The manager emphasizes buying companies at low multiples when earnings are temporarily depressed, creating positive asymmetry where operating performance is more likely to improve than deteriorate. |
Contrarian Distressed Cyclical Multiples Asymmetry |
CoalWarrior Met Coal represents the fund's largest position at 8.0% of the portfolio, indicating significant exposure to the coal sector during a period when the manager sees attractive valuations in energy-related companies. |
Metallurgical Energy Commodities Mining Resources | |
Oil ServicesThe fund holds multiple positions in offshore drilling and oil services companies including Tidewater, Valaris, and Subsea 7, representing significant exposure to the energy services sector which the manager views as attractively valued. |
Offshore Drilling Subsea Equipment Cyclical |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 16, 2026 | Fund Letters | Third Avenue Value Fund | ESYJY | easyJet plc | Airlines | Airlines | Bull | London Stock Exchange | Aircraft Fleet, Airlines, Airport Slots, Asset-Based, European, net cash, Special Situation, takeover target, Value | Login |
| Jul 16, 2026 | Fund Letters | Third Avenue Value Fund | - | Paltac Ltd. | Other | Consumer Staples Distribution & Retail | Bull | Japan Exchange Group (Tokyo Stock Exchange) | Corporate Governance, Distribution, Health and Beauty, Japan, Parent-Subsidiary, takeover, Tangible assets, tender offer, Value Realization | Login |
| Jul 16, 2026 | Fund Letters | Third Avenue Value Fund | TKAMY | thyssenkrupp AG | Conglomerates | Industrial Conglomerates | Bull | Frankfurt Stock Exchange (Deutsche Börse) | Catalyst-Driven, Corporate Restructuring, Germany, industrial conglomerate, Special Situation, Spin-offs, Steel, Sum-of-parts, turnaround, Value | Login |
| Apr 22, 2026 | Fund Letters | Third Avenue Value Fund | - | OSAKA Titanium Technologies Co. Ltd | Other | Specialty Chemicals | Bull | New York Stock Exchange | Aerospace, capacity expansion, Critical Minerals, Cyclical, Defense, Japan, specialty chemicals, supply chain, Titanium, Value | Login |
| Apr 22, 2026 | Fund Letters | Third Avenue Value Fund | HOG | Harley-Davidson, Inc. | Recreational Vehicles | Motorcycle Manufacturers | Bull | New York Stock Exchange | Brand, capital allocation, financial services, inventory normalization, Management Change, Motorcycles, restructuring, turnaround, Value | Login |
| Apr 22, 2026 | Fund Letters | Third Avenue Value Fund | RHI | Robert Half Inc. | Staffing & Employment Services | Human Resource & Employment Services | Bull | New York Stock Exchange | Accounting, AI Resilience, cash generation, Consulting, Cyclical, dividend yield, Finance, professional services, Staffing, technology | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | CS | CCO Capstone Copper Corp. | Materials | Copper Mining | Bull | NYSE | Chile, Copper, expansion, FCF, Production, Supply, valuation | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | LUN | Lundin Mining Corp. | Materials | Copper & Gold Mining | Bull | NYSE | cash flow, Copper, Gold, Hedge, Mining, Operations | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | HBR | Harbour Energy plc | Energy | Oil & Gas Exploration & Production | Bull | NYSE | cash flow, Gas, North sea, oil, Regulation, Taxation | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | OR | Old Republic International Corp. | Materials | Property & Casualty Insurance | Bull | NYSE | capital return, Insurance, turnaround, underwriting, valuation | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | DBK | Deutsche Bank AG | Financials | Banks | Bull | - | banking, capital return, restructuring, ROE, turnaround | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | BOISE | Boise Cascade Co. | Other | Building Materials | Bull | NYSE | Building materials, cash, consolidation, Housing, valuation | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | ROG | Rogers Corporation | Information Technology | Electronic Components | Bull | NYSE | Activism, electronics, EV, Margins, materials, restructuring | Login |
| Oct 21, 2025 | Fund Letters | Matthew Fine | AC | AC Ayala Corporation | Industrials | Diversified Holdings | Bull | Philippine Stock Exchange | assets, buybacks, conglomerate, Emerging markets, Philippines, valuation | Login |
| Jul 22, 2025 | Fund Letters | Matthew Fine | CRE LN | Conduit Holdings Limited | Financials | Reinsurance | Bull | New York Stock Exchange | Bookvalue, recovery, Reinsurance, underwriting, Volatility | Login |
| Jun 30, 2025 | Fund Letters | Third Avenue Value Fund | CDRE.L | Conduit Holdings Limited | Financials | Reinsurance | Bull | London Stock Exchange | Book Value, Casualty, combined ratio, debt-free, Hard Market, Property, Reinsurance, specialty, turnaround, Value | Login |
| Dec 31, 2024 | Fund Letters | Third Avenue Value Fund | BMW.DE | Bayerische Motoren Werke AG | Consumer Discretionary | Automobile Manufacturers | Bull | XETRA | Automotive Manufacturing, BEV Transition, capital returns, Electric Vehicles, Equity, German Automaker, luxury automobiles, Share Buybacks, Value Investment | Login |
| Dec 31, 2024 | Fund Letters | Third Avenue Value Fund | MBG.DE | Mercedes-Benz Group AG | Consumer Discretionary | Automobile Manufacturers | Bull | XETRA | Automotive Manufacturing, Electric Vehicles, Equity, German Automaker, luxury automobiles, Luxury Brand, PHEV, Value Investment | Login |
| Dec 31, 2024 | Fund Letters | Third Avenue Value Fund | 7270.T | Subaru Corporation | Consumer Discretionary | Automobile Manufacturers | Bull | Tokyo Stock Exchange | Affluent Customers, Equity, Japanese Automaker, Mass Market Pricing, Niche Producer, North America Focus, Toyota Partnership, Value Investment | Login |
| Oct 15, 2024 | Fund Letters | Third Avenue Value Fund | 7270.T | Subaru Corporation | Consumer Discretionary | Automobile Manufacturers | Bull | Tokyo Stock Exchange | All-Wheel Drive, Automobile Manufacturer, brand loyalty, cash flow generation, Electric Vehicle Strategy, Japan, net cash, Toyota Partnership, Value | Login |
| Jun 30, 2024 | Fund Letters | Third Avenue Value Fund | 7433.T | Paltac Ltd. | Consumer Staples | Consumer Staples Distribution & Retail | Bull | Tokyo Stock Exchange | cash-rich, consumer staples, Distribution, Dividend Growth, Japan, Logistics, market leader, Share Buybacks, takeover target, Value, Zero Debt | Login |
| Jun 30, 2024 | Fund Letters | Third Avenue Value Fund | CBG.L | Close Brothers Group plc | Financials | Diversified Banks | Bull | London Stock Exchange | asset management, capital position, contrarian, Distressed, market making, Motor Finance, Regulatory Overhang, Specialty lending, UK Banking, Value | Login |
| Mar 31, 2024 | Fund Letters | Third Avenue Value Fund | BOIG.L | Bank of Ireland Group PLC | Financials | Banks | Bull | London Stock Exchange | Bank, capital returns, consolidation, Equity, financial services, Interest rates, Ireland, Value | Login |
| Mar 31, 2024 | Fund Letters | Third Avenue Value Fund | HBR.L | Harbour Energy plc | Energy | Oil, Gas & Consumable Fuels | Bull | London Stock Exchange | acquisition, contrarian, energy, Equity, North sea, Norway, Oil & Gas, UK, Value | Login |
| Jan 19, 2024 | Fund Letters | Third Avenue Value Fund | S4C.L | S4 Capital | Communication Services | Advertising | Bull | London Stock Exchange | contrarian, Cyclical, digital advertising, media, turnaround, UK, Value | Login |
| Jan 19, 2024 | Fund Letters | Third Avenue Value Fund | CMA | Comerica | Financials | Regional Banks | Bull | New York Stock Exchange | contrarian, Corporate Lending, financials, floating rate, interest rate sensitivity, regional bank, US | Login |
| Jan 19, 2024 | Fund Letters | Third Avenue Value Fund | BMW.DE | BMW AG | Consumer Discretionary | Automobile Manufacturers | Bull | XETRA | cash generation, dividend, Electric Vehicles, German, Luxury Automotive, Premium Brand, Value | Login |
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| - | Fund Letters | Third Avenue Value Fund | 6951.T | JEOL Ltd. | Technology Hardware & Equipment | Electronic Equipment, Instruments & Components | Bull | Tokyo Stock Exchange | activist investor, Double-digit FCF Yield, Electron Microscopes, EUV lithography, Japan, Multi-beam Mask Writers, net cash, scientific instruments, semiconductor equipment, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| ESYJY | For long-time Fund holding easyJet plc, it was certainly an eventful second quarter. The closure of the Strait of Hormuz, subsequent energy price increases, related fears of a potential shortfall of jet fuel in Europe, and a generalized fear of strains on U.K. consumer budgets due to energy price-driven inflation were unkind to shares of easyJet and other European airlines towards the end of the first quarter and early in the second quarter. As the second quarter progressed, however, energy prices began to subside as hopes of conflict resolution grew and adjustments to European refinery operations, as well as increased imports, successfully mitigated the risk of a jet fuel shortfall for the time being. In the midst of this whirlwind of uncertainty, easyJet was approached by a potential acquirer, U.S.-based alternative investment firm Castlelake, which explicitly describes itself as an asset-based investor. Castlelake has increased its indicative offer to acquire easyJet several times since the initial approach and, naturally, easyJet's shares have responded favorably. easyJet's board of directors recently communicated that it is inclined to recommend Castlelake's latest offer to shareholders. However, an asset-based attraction to the shares of easyJet is a concept that certainly resonates with our team. In fact, the company's underlying asset value was central to our investment thesis as well. easyJet owns a very valuable, unusually young and homogeneous fleet of narrow-body aircraft. easyJet's fleet is comprised of more than 350 aircraft in the A320 family. The company also has a large aircraft order book, with near-term delivery schedules, which is also a coveted and difficult to obtain asset in the airline industry, given significant production limitations at both Boeing and Airbus. Additionally, easyJet's European airport slots in highly capacity-constrained airports are scarce and valuable assets. What is also idiosyncratic to easyJet is that the company owns an unusually large portion of its fleet with ownership heavily weighted towards its most desirable recent vintage aircraft, whereas leased aircraft are a minority. High ownership of an aircraft fleet is typically associated with a company incurring large amounts of debt to purchase the aircraft. However, in 2021, as the airline industry had begun to emerge from the pandemic, easyJet conducted a large rights offering to ensure financial strength in a period of great uncertainty, which has now left the company in a position of having both a very high ownership of its fleet and a net cash balance sheet. |
| 6823.T | With regard to our investments in Horiba and JEOL, two Japanese companies involved in making semiconductor capital equipment, during the fourth quarter of 2025 we discussed some degree of frustration that JEOL's critical nature within the supply chain for cutting edge semiconductors had not been appreciated or reflected in its share price, even while somewhat similarly exposed Horiba had performed well, along with many industry peers, on the back of very strong capital spending by semiconductor manufacturers. Central to the frustration at that time is our strong view that there are many critical chokepoints within the semiconductor supply chain and, while scope of the revenue opportunity for certain links in the chain are smaller than the revenue opportunity for the semiconductor manufacturers themselves, TSMC for example, those links in the chain are nonetheless critical. In other words, one can't make the chips without the machines that make the chips, and one can't make the machines without various critical machine components made by the likes of Horiba. In other cases, one can't use the machines made by the likes of ASML without accompanying machines made by the likes of JEOL. An additional attraction is that in various of those smaller but critical supply chain links the industries are highly concentrated and commonly dominated by two or three participants. It has also been our experience that we have had opportunities to purchase shares of several of these critical companies, many of which are based in Japan, at very modest prices, particularly when compared to the exorbitant share prices of many of the global companies that are the public faces of chip manufacturing. It is pleasing to see a growing recognition of the interconnectedness of the industry begin to be reflected in share prices of the lesser-known companies. |
| 6951.T | With regard to our investments in Horiba and JEOL, two Japanese companies involved in making semiconductor capital equipment, during the fourth quarter of 2025 we discussed some degree of frustration that JEOL's critical nature within the supply chain for cutting edge semiconductors had not been appreciated or reflected in its share price, even while somewhat similarly exposed Horiba had performed well, along with many industry peers, on the back of very strong capital spending by semiconductor manufacturers. Central to the frustration at that time is our strong view that there are many critical chokepoints within the semiconductor supply chain and, while scope of the revenue opportunity for certain links in the chain are smaller than the revenue opportunity for the semiconductor manufacturers themselves, TSMC for example, those links in the chain are nonetheless critical. In other words, one can't make the chips without the machines that make the chips, and one can't make the machines without various critical machine components made by the likes of Horiba. In other cases, one can't use the machines made by the likes of ASML without accompanying machines made by the likes of JEOL. An additional attraction is that in various of those smaller but critical supply chain links the industries are highly concentrated and commonly dominated by two or three participants. It has also been our experience that we have had opportunities to purchase shares of several of these critical companies, many of which are based in Japan, at very modest prices, particularly when compared to the exorbitant share prices of many of the global companies that are the public faces of chip manufacturing. It is pleasing to see a growing recognition of the interconnectedness of the industry begin to be reflected in share prices of the lesser-known companies. |
| 8283.T | Far from the U.K., the Fund has owned shares of Paltac Ltd., Japan's largest distributor of health and beauty products, daily necessities, and over-the-counter pharmaceuticals, since the second quarter of 2024. During the Fund's ownership period, both the operating performance of the business and the total return of the shares have performed well and largely in keeping with our expectations. The company is one of two dominant players in its industry, which entails gathering products from thousands of manufacturers and distributing them to thousands of retail points of sale. The industry is relatively slow-growing and competitive strength derives from a nationwide network of well-located modern distribution facilities, extremely efficient operations and sophisticated technology that enables value-added services to customers. Furthermore, the evolving pressures being exerted upon Japanese management teams and corporate boards to improve capital allocation decision-making, reduce cross-shareholdings and simplify corporate structures continues to gain momentum. In May of 2026, Paltac's parent company Medipal did indeed launch an all-cash tender offer for the 47.6% of Paltac shares it did not already own. The offer price of JPY 6,650 per share amounts to a reasonable premium of approximately 40%, compared to the pre-announcement price, and the tender offer is scheduled to close in early July. It is likely that this tender offer will mark the end of a successful investment in Paltac for the Fund. |
| CSFFF | Capstone Copper produced a significant performance contribution during the quarter as its share price staged a strong recovery following a weak first quarter performance. Share price weakness earlier in the year had resulted from the company experiencing operational challenges and revising 2026 production guidance as a result. Mining is a difficult business and we remain unperturbed by small fluctuations in short-term production guidance given our strong view of the long-term, secular attractiveness of good quality copper mining assets. We are of the opinion that the high probability of looming global copper supply shortages, relative to secularly growing copper demand, remains underappreciated today. In our view, there are few global assets as strategic and difficult to replace as a long-life copper mine in a reasonable political jurisdiction, such as the assets owned and operated by Lundin Mining and Capstone Copper. |
| RHI | It is also worth noting that the positive performance contributions from Robert Half and Harley-Davidson, two U.S. small-cap companies purchased during the preceding quarter, were close behind the investments listed above in terms of performance contribution. |
| HOG | It is also worth noting that the positive performance contributions from Robert Half and Harley-Davidson, two U.S. small-cap companies purchased during the preceding quarter, were close behind the investments listed above in terms of performance contribution. |
| TDW | However, on the more frustrating end of the performance ledger were Tidewater, Valaris, Harbour Energy, BMW and Jardine Cycle & Carriage. Although, it should be noted that both Tidewater and Valaris remain among the strongest contributors to Fund performance year-to-date. Tidewater, Valaris and Harbour share a close association with offshore energy production. The former two companies provide offshore energy services through Tidewater's operation of the world's largest fleet of platform supply vessels and Valaris' operation of one of the world's largest fleets of offshore drilling rigs. The shares of Tidewater and Valaris have declined significantly from recent highs. It is not entirely surprising that this group of investments weakened as a perceived line of sight to an end of the war in Iran and a reopening of the Strait of Hormuz recently came into view, though we feel strongly that this type of knee-jerk reaction belies a few key points. First, governments across the world have become materially more focused on energy security as a result of recent intermittent energy supply shocks. This is likely to be an enduring trend, in our view. The growing energy conscientiousness is likely to add pace and amplitude to a cyclical recovery that was already building in the offshore energy services industry. A drive to create energy security and resilience against price shocks has been impacting the policy of many governments and companies in recent years, particularly following the energy supply disruptions that occurred as Russia invaded Ukraine. Energy price declines from recent highs are unlikely to diminish those agendas, in our view. |
| VAL | However, on the more frustrating end of the performance ledger were Tidewater, Valaris, Harbour Energy, BMW and Jardine Cycle & Carriage. Although, it should be noted that both Tidewater and Valaris remain among the strongest contributors to Fund performance year-to-date. Tidewater, Valaris and Harbour share a close association with offshore energy production. The former two companies provide offshore energy services through Tidewater's operation of the world's largest fleet of platform supply vessels and Valaris' operation of one of the world's largest fleets of offshore drilling rigs. The shares of Tidewater and Valaris have declined significantly from recent highs. It is not entirely surprising that this group of investments weakened as a perceived line of sight to an end of the war in Iran and a reopening of the Strait of Hormuz recently came into view, though we feel strongly that this type of knee-jerk reaction belies a few key points. |
| HBR.L | However, on the more frustrating end of the performance ledger were Tidewater, Valaris, Harbour Energy, BMW and Jardine Cycle & Carriage. Harbour Energy is the Fund's only direct investment in an actual producer of oil and gas. |
| BMW.DE | However, on the more frustrating end of the performance ledger were Tidewater, Valaris, Harbour Energy, BMW and Jardine Cycle & Carriage. |
| JCYCF | However, on the more frustrating end of the performance ledger were Tidewater, Valaris, Harbour Energy, BMW and Jardine Cycle & Carriage. |
| MPHLF | In May of 2026, Paltac's parent company Medipal did indeed launch an all-cash tender offer for the 47.6% of Paltac shares it did not already own. The offer price of JPY 6,650 per share amounts to a reasonable premium of approximately 40%, compared to the pre-announcement price, and the tender offer is scheduled to close in early July. |
| BZU | Looking across many of the Fund's holdings today, ownership of strategic, very difficult to replicate tangible assets immediately come to mind, such as U.S. cement and aggregates production assets, an area in which many strategic transactions have taken place. The Fund owns U.S. cement and aggregates assets today at deeply discounted valuations through non-U.S. companies Buzzi and Taiheiyo Cement, both of which derive the bulk of their underlying asset value from U.S. assets. |
| 5233.T | Looking across many of the Fund's holdings today, ownership of strategic, very difficult to replicate tangible assets immediately come to mind, such as U.S. cement and aggregates production assets, an area in which many strategic transactions have taken place. The Fund owns U.S. cement and aggregates assets today at deeply discounted valuations through non-U.S. companies Buzzi and Taiheiyo Cement, both of which derive the bulk of their underlying asset value from U.S. assets. |
| SSVSF | Offshore energy service companies' fleets of tangible assets, owned and operated by Fund holdings Tidewater, Valaris and Subsea7, are also critical and would be nearly impossible to replicate in the foreseeable future. |
| LUNMF | In our view, there are few global assets as strategic and difficult to replace as a long-life copper mine in a reasonable political jurisdiction, such as the assets owned and operated by Lundin Mining and Capstone Copper. In the case of Lundin, it appears probable to us that the company's Vicuna district development project will represent the world's most important copper development project for the next decade at a time of developing copper supply shortages. |
| TKAMY | During the quarter ending June 30, 2026, the Fund initiated a new position in thyssenkrupp AG. thyssenkrupp AG is a German industrial conglomerate that operates across five segments, including steel, marine systems, automotive technology, material services, and decarbon technologies. thyssenkrupp is perhaps best known for its German steel operations but the company is a multinational organization with diversified operations in various stages of cyclical recovery. While we believe the company stands to benefit from a cyclical recovery in several underlying business segments and an eventual turnaround of its long-suffering steel operations, we view the company as a catalyst-rich special situation with many investment attributes that are independent of underlying cyclical recoveries. With a history dating back to 1811, thyssenkrupp was formed in 1999 through the merger of Thyssen and Krupp, which provided increased scale and opportunities for synergies in a consolidating European steel industry amid intensifying global competition. A major turning point came in 2020, when the company sold most of its elevator business to private equity for €17 billion. The elevator business had long been the company's crown jewel, but the divestiture allowed the company to reduce the heavy debt load it had been carrying and freed capital for further restructuring. In 2023, a new CEO was appointed from outside the company with a mandate to lead a complex multi-year corporate transformation process. In 2025, the company announced the intention to transition to a financial holding company, with ownership stakes in independently operated business units open to third-party capital. The first step in this transition was the spin-off of a 49% stake in TKMS, one of the leading producers of conventional submarines and surface vessels in Europe, which occurred in October 2025. A subsequent step was signaled in June 2026 when the company announced the intention to spin-off a 49% stake in the Materials Services business by the end of calendar 2026. By 2030, management intends to separate the remaining three business segments, namely Steel, Automotive and Decarbon Technologies. During the quarter, the Fund was able to acquire shares at a deep discount to a conservative estimate of net asset value, with prospects for improved operating performance and growth at the underlying business units as they begin life as standalone entities with independent management teams, improved incentives, and tailored capital structures. Moreover, we see a defined path to surface value for shareholders as management executes its transformation strategy, with embedded optionality provided by a strong financial position and the potential for value-enhancing corporate actions. |
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