Martin Whitman

Martin Whitman

Last Update: 01-09-2017
Related: Third Avenue Management

Number of Stocks: 36
Number of New Stocks: 2

Total Value: $1,084 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Martin Whitman' s Profile & Performance

Profile

Martin Whitman is Founder and Portfolio Manager of the Third Avenue Value Fund (TAVFX). Whitman is a 1949 graduate of Syracuse University, which recently renamed its School of Management after Whitman, after a large gift from him in June 2003. He is an adjunct faculty member at Yale School of Management.

Web Page:http://www.thirdavenuefunds.com/

Investing Philosophy

Whitman is a "buy and hold" value investor. He buys stock in companies when he thinks that the company has strong finances, competent management, and the business is understandable. Also the company's stock must be cheap, meaning it trades at a significant discount to intrinsic value. The market price must lie substantially below a conservative valuation of the business as a private entity, or as a takeover candidate. He generally sells an investment only when there has been a fundamental change in the business or capital structure of the company that significantly affects the investment's inherent value, or when he believes that the market value of an investment is overpriced relative to its intrinsic value

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Third Avenue Value Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201613.3911.961.4
2015-8.371.38-9.7
20144.8813.69-8.8
3-Year Cumulative9 (2.9%/year)29 (8.9%/year)-20 (-6%/year)
201318.8432.39-13.5
201227.481611.5
5-Year Cumulative65.1 (10.5%/year)98.2 (14.7%/year)-33.1 (-4.2%/year)
2011-20.682.11-22.8
201013.8715.06-1.2
200944.5126.4618.0
2008-45.61-37-8.6
20075.765.490.3
10-Year Cumulative23.9 (2.2%/year)95.7 (6.9%/year)-71.8 (-4.7%/year)
200614.6915.79-1.1
200516.494.9111.6
200426.6210.8815.7
200310.4628.68-18.2
20027.13-22.129.2
15-Year Cumulative148.1 (6.2%/year)164.2 (6.7%/year)-16.1 (-0.5%/year)
200110.82-11.8922.7
20000.91-9.110.0
199910.0621.04-11.0
199816.7228.58-11.9
1997-5.0333.36-38.4
20-Year Cumulative238.5 (6.3%/year)339.2 (7.7%/year)-100.7 (-1.4%/year)
199611.0222.96-11.9
19952.3637.58-35.2
1994-3.221.32-4.5
19931.3610.08-8.7
199210.887.623.3
25-Year Cumulative318.4 (5.9%/year)791.8 (9.1%/year)-473.4 (-3.2%/year)
1991-0.2630.47-30.7

Top Ranked Articles

Does the Increase in Volatility Signal a Dangerous Market Environment? Anxiety typically leads to knee-jerk reactions and excessive trading in their portfolios
Over the last several weeks stock price volatility has increased significantly above norms. All of a sudden it is not uncommon to see stock prices moving 5%, 10% or more in a single trading day. Interestingly, this volatility is occurring both to the upside and the downside. Common sense would suggest that the intrinsic value of a business cannot change by those orders of magnitude from one day to the next. Logic dictates that the market is either inaccurately pricing the stocks now or it was incorrectly pricing them the day before. Read more...
Answers to the Hardest Question: When Do I Sell a Stock? There are 2 primary reasons it makes sense to sell a stock
The most common complaint I have heard from investors over my 40-plus years in the financial services industry is as follows: "Everyone wants to tell me what to buy and when, but no one ever tells me when to sell." Read more...
Third Avenue Comments on Interface Inc. Guru stock highlight
Interface, Inc. (NASDAQ:TILE) Interface has been on our radar for some time and during the quarter its stock price reached a level we viewed as an attractive entry point, having declined more than 40% within the past few quarters due to investor concern around the company's level of growth. While we agree that growth in the short-term is likely to be muted, we believe the company's core product - modular carpet - is poised for long-term secular growth.

Interface is the world's leading manufacturer of carpet tile. The strength of its brand and its reputation for service, quality, design and performance provide a competitive advantage. Interface's global manufacturing capabilities across four continents also provide an advantage in serving multinational corporate customers quickly and cost-effectively.

Central to our thesis on Interface is the fact that carpet tile has reached the point where it is cost-competitive with traditional 'broadloom' carpet but offers numerous advantages, including Read more...
Third Avenue Management Comments on Visteon Guru stock highlight
During the quarter, as part of its capital return program related to the sale of its stake in its climate control business last year, Visteon (NYSE:VC) made a $1.75 billion special cash distribution to shareholders ($43.40 per share). The Board also authorized a $500 million share repurchase program, which is in addition to the $500 million repurchased last year. Post these actions, the company is still well-financed, with net cash on its balance sheet. We used some of the proceeds we received from the distribution to increase our position in Visteon common as the shares continued to trade at a material discount to our estimated NAV. Since focusing on being a standalone automotive electronics company, centered on cockpit electronics, Visteon has been successful in re-winning and winning new business, reducing costs and showing margin improvement. We believe Visteon is well-positioned to participate in the growing connected car market. Read more...
Third Avenue Management Comments on Comfort Systems USA Guru stock highlight
Beyond a strong balance sheet, other key characteristics that we look for in our companies include a strong business model and a large addressable market to support long-term revenue and earnings compounding. Our addition of Comfort Systems USA (NYSE:FIX) is a good example of these factors. Comfort Systems offers design, installation, retrofit and service for HVAC and electrical systems for facilities such as office buildings, plants, retail centers, hospitals and universities. Comfort Systems is unique in that it focuses mostly in smaller cities where, relative to large urban settings, there is less competition for both projects and for skilled labor. The company works on approximately 4,000 jobs annually and most of the contracts are under $1 million. More than half of these are for renovations and repairs and are recurring in nature, rather than from new constructions. Read more...
» More Martin Whitman Articles

Commentaries and Stories

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Third Avenue Management Comments on Lennar Guru stock highlight
We initiated Lennar (NYSE:LEN) in October, and thus wrote up our comments in our prior shareholder letter, but due to the shift in our letter cadence, we are republishing our thoughts from our initial purchase. More...

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Third Avenue Management Comments on Cerner Guru stock highlight
Cerner (NASDAQ:CERN) is a leading health care information technology company. We have long admired Cerner as it is a well-financed compounder, having compounded book value at an average rate of 16% over the past 10 years. Delays in customer adoption of healthcare Information Technology (IT) systems as regulatory mandates have lengthened, exacerbated by concerns about potential changes to the ACA and the impact on healthcare IT spend, have negatively pressured Cerner's common stock price down from over $67 to our initial purchase cost of approximately $48, giving us an opportunity to acquire shares of Cerner common stock at an attractive valuation. More...

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Calendar 4th Quarter Shareholder Letter From Marty Whitman's Third Avenue Value Fund Chip Rewey discusses market and holdings Martin Whitman,Third Avenue Management - Calendar 4th Quarter Shareholder Letter From Marty Whitman's Third Avenue Value Fund
Dear Fellow Shareholders: More...

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Third Avenue Management Comments on Petroleum Geo-Services Guru stock highlight
Petroleum Geo-Services ("PGS") (OSL:PGS) Throughout December and early January, PGS completed its refinancing activities as described in our previous letter. PGS conducted an equity raise primarily for the purpose of refinancing its 2018 bonds. The Fund was a holder of both PGS equity and its 2018 bonds. We were pleased to participate in improving PGS’ capital structure via the equity offering, which precipitated a meaningful price appreciation of both our equity and credit positions. PGS tendered for our 2018 bonds PGS on terms favorable to bondholders, and meanwhile the company’s equity responded very favorably to the improvement in the company’s capital structure and the elimination of its nearest debt maturity. Our investments in PGS securities have been important contributors to performance of late. More...

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Third Avenue Management Comments on Lundin Mining Guru stock highlight
Lundin Mining (“Lundin”) (TSX:LUN) In mid-November, Lundin announced that it had entered into an agreement to sell its holding in an entity called TF Holdings Ltd. TF is the entity through which Lundin and Freeport-McMoRan have for many years controlled a Central African copper mine called Tenke Fungurume. The Lundin transaction essentially is the sale of a 24% economic interest in the mine for the agreed price of CAD 1.14 billion. This transaction is expected to close during the first half of 2017 and would add considerable cash to what is already one of the mining industry’s best balance sheets. While Tenke Fungurume is an unusually high quality mine, its jurisdiction can at times be an unusually challenging place to do business. We view the transaction price as reasonable and look positively upon the prospective reduction of political risk embedded within Lundin. With the transaction proceeds Lundin would also bolster its position as one of the very few companies in a position to acquire mining assets at one of the rare times when some very decent assets may be available More...

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Third Avenue Management Comments on Lundin Mining Guru stock highlight
Lundin Mining (“Lundin”) (TSX:LUN) In mid-November, Lundin announced that it had entered into an agreement to sell its holding in an entity called TF Holdings Ltd. TF is the entity through which Lundin and Freeport-McMoRan have for many years controlled a Central African copper mine called Tenke Fungurume. The Lundin transaction essentially is the sale of a 24% economic interest in the mine for the agreed price of CAD 1.14 billion. This transaction is expected to close during the first half of 2017 and would add considerable cash to what is already one of the mining industry’s best balance sheets. While Tenke Fungurume is an unusually high quality mine, its jurisdiction can at times be an unusually challenging place to do business. We view the transaction price as reasonable and look positively upon the prospective reduction of political risk embedded within Lundin. With the transaction proceeds Lundin would also bolster its position as one of the very few companies in a position to acquire mining assets at one of the rare times when some very decent assets may be available More...

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Third Avenue Management Comments on Global Logistic Properties Guru stock highlight
Global Logistic Properties (“GLP”) (SGX:MC0) We have been satisfied owners of GLP for some time. From an execution standpoint, this logistics facility developer, owner and operator continues to do a fine job operationally. The company has judiciously grown its facilities network in China, Japan, Brazil and the U.S., both organically and through acquisition, at a pace appropriate for each respective geographic market while maintaining a conservative balance sheet. Meanwhile, the company has made great strides in growing its fund management platform, which has the benefit of improving overall returns through the incorporation of fee-paying third party capital. However, the stock had until recently languished at a low valuation presumably as a result of the broad perception that macroeconomic growth in China is slowing and that the growth of GLP’s network development will also slow in turn. Yet investors fixated on rapid growth of earnings fail to appreciate the value of the existing in-place network of facilities, a reasonable replacement cost analysis of those assets, the extreme More...

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Third Avenue Real Estate Value Fund 4th Quarter Commentary Review of markets and holdings Third Avenue Management,Martin Whitman - Third Avenue Real Estate Value Fund 4th Quarter Commentary
Dear Fellow Shareholders: More...

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Third Avenue International Value Fund 4th Quarter Letter Discussion of markets and holdings Third Avenue Management,Martin Whitman - Third Avenue International Value Fund 4th Quarter Letter
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Martin Whitman Invests in Homebuilder in 4th Quarter Most of guru's quarterly activity involves reducing positions Martin Whitman - Martin Whitman Invests In Homebuilder In 4th Quarter
Martin Whitman (Trades, Portfolio), founder and portfolio manager of Third Avenue Value Fund, bought two new holdings in the fourth quarter (ended Oct. 31, 2016), but most of his activity involved reducing positions. More...

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Third Avenue Value Fund Buys 2 Stocks and Adds to 2 Positions in Q4 Fund reveals its picks earlier than most Third Avenue Management,Martin Whitman - Third Avenue Value Fund Buys 2 Stocks And Adds To 2 Positions In Q4
Third Avenue Management (Trades, Portfolio), a private investment firm founded by legendary value manager Martin Whitman (Trades, Portfolio), ends its quarter on Oct. 31 and revealed the fourth-quarter trades of its Third Avenue Value Fund in its recent letter. More...

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Third Avenue Focused Credit Fund Letter a Year After Starting Wind Down Fund hits road bump returning money to shareholders Third Avenue Management,Martin Whitman - Third Avenue Focused Credit Fund Letter A Year After Starting Wind Down
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Third Avenue Management Comments on Korn Ferry International Guru stock highlight
Many of you may recognize the strong brand name of Korn Ferry International (NYSE:KFY), another purchase in the quarter, but you may not have noticed the business transformation the company has undertaken anchored by its December 2015 purchase of the Hay Group. Korn Ferry is best known for its executive recruiting. It is a top brand name in this highly fragmented industry, with a strong offering on the more resilient and niche C-suite space. Most of its job searches have annual compensation of $300,000 or more. More...

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Third Avenue Management Comments on Comfort Systems USA Guru stock highlight
Beyond a strong balance sheet, other key characteristics that we look for in our companies include a strong business model and a large addressable market to support long-term revenue and earnings compounding. Our addition of Comfort Systems USA (NYSE:FIX) is a good example of these factors. Comfort Systems offers design, installation, retrofit and service for HVAC and electrical systems for facilities such as office buildings, plants, retail centers, hospitals and universities. Comfort Systems is unique in that it focuses mostly in smaller cities where, relative to large urban settings, there is less competition for both projects and for skilled labor. The company works on approximately 4,000 jobs annually and most of the contracts are under $1 million. More than half of these are for renovations and repairs and are recurring in nature, rather than from new constructions. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Cubic Corp Guru stock highlight
Cubic Corp (NYSE:CUB), another top holding for the Fund, is a small company with about $1.1 billion in market cap that has three main businesses: military communication equipment, military training (for example, they run the Top Gun flight school), and in our view the most interesting part is its transportation segment. The company's transportation segment is the world leader in design and management of public bus and subway systems, handling the fare systems for major cities such as London, New York City, Chicago, and Vancouver. Cubic is also leading technology efforts, such as smart phone payments and dynamic re-routing, to help keep us all on time for work. More...

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Third Avenue Management Comments on Multi-Color Corporation Guru stock highlight
Multi-Color Corporation (NASDAQ:LABL) 1 is a good example of a name that is not in our benchmark and is a high conviction top ten holding for the Fund. The company produces numerous types of labels for a variety of consumer products, such as detergent, wine bottles, motor oil, etc. Multi-Color meets the tenets of our investment philosophy of creditworthiness, book value compounding and a discounted valuation. More...

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Third Avenue Small-Cap Value Fund 3rd Quarter Commentary From Chip Rewey Martin Whitman,Third Avenue Management - Third Avenue Small-Cap Value Fund 3rd Quarter Commentary
Dear Fellow Shareholders: More...

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Third Avenue Value Fund 4th Quarter Portfolio Manager Commentary Chip Rewey, manager at Marty Whitman's firm, authors quarterly review of holdings and investing environment Martin Whitman,Third Avenue Management - Third Avenue Value Fund 4th Quarter Portfolio Manager Commentary
Dear Fellow Shareholders: More...

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Does the Increase in Volatility Signal a Dangerous Market Environment? Anxiety typically leads to knee-jerk reactions and excessive trading in their portfolios Martin Whitman,Warren Buffett - Does The Increase In Volatility Signal A Dangerous Market Environment?
Over the last several weeks stock price volatility has increased significantly above norms. All of a sudden it is not uncommon to see stock prices moving 5%, 10% or more in a single trading day. Interestingly, this volatility is occurring both to the upside and the downside. Common sense would suggest that the intrinsic value of a business cannot change by those orders of magnitude from one day to the next. Logic dictates that the market is either inaccurately pricing the stocks now or it was incorrectly pricing them the day before. More...

RETIREMENT,VALUE TRAP,RETIREMENT,INTRINSIC VALUE


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T Rowe Price Equity Income Fund Seeks Strong Value in 3rd Quarter Mutual fund adds high performing companies and removes margin decliners T Rowe Price Equity Income Fund,Martin Whitman,Ste - T Rowe Price Equity Income Fund Seeks Strong Value In 3rd Quarter
During the third quarter, the T Rowe Price Equity Income Fund (Trades, Portfolio) took a position in KeyCorp (NYSE:KEY) and tripled its stake in Johnson Controls International PLC (NYSE:JCI). Additionally, the fund trimmed its position in General Electric Co. (NYSE:GE) and Bank of America Corp. (NYSE:BAC). These transactions align with the mutual fund’s value-oriented investment approach. More...

T ROWE PRICE EQUITY INCOME FUND, STEVEN ROMICK, MARTIN WHITMAN


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