Martin Whitman

Martin Whitman

Last Update: 2014-06-23
Related: Third Avenue Management

Number of Stocks: 38
Number of New Stocks: 1

Total Value: $2,092 Mil
Q/Q Turnover: 3%

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

Martin Whitman Watch

  • Third Avenue Management Stategies and their top holdings

    Third Avenue Management is an investment management firm launched in 1990 by veteran value investor Martin J. Whitman. Whitman is considered to be a “career investment banker and turnaround specialist” with an educational background hailing from Syracuse University. Furthermore, Whitman holds a master degree in economics, is a recipient of the coveted CFA designation, and author of The Aggressive Conservative Investor, Value Investing: A Balanced Approach, and Distressed Investing: Principles and Technique. Symbolically represented by a New York Elevated Train logo, it serves as homage to the value philosophy of the firm as the El train historically cost a dime to travel from borough to borough in New York City. Third Avenue offers several different products to investors, from the classical value fund, to more exotic funds such as focused credit funds. Nonetheless, the flagship and originating fund of the firm is the Third Avenue Value Fund (TVFVX).  


  • Martin Whitman Buys Tellabs Inc., Sells Nabors Industries Ltd., Brookfield Asset Management

    Legendary value investor Martin Whitman reported his third quarter portfolio. Marty Whitman uses a bottom-up, value oriented approach to analysis. He seems to buy “cheap and safe” companies. Marty Whitman also writes great shareholder letter. If you missed his latest letter, please read it here.

    Marty Whitman’s Third Avenue Value Fund is now co-managed by himself and Ian Lapey. He bought more Tellabs Inc., reduced Nabors Industries Ltd. during the 3-months ended 07/31/2011, according to the most recent filings. As of 07/31/2011, Third Avenue Value Fund owns 42 stocks with a total value of $4 billion. These are the details of the buys and sells.  


  • Marty Whitman Q3 Shareholder Letter

    Legendary value investor Marty Whitman just released his shareholder letter. Being an expert with debt investing, Mr. Whitman shared his view on the US debt. He finished his letter with these commentaries:

    ________  


  • Marty Whitman's Second Quarter Sells — A Winner (XEC) and a Loser (BFSB)

    Martin Whitman is an influential investor known for his keen insight and in-depth shareholder letters. He is the founder and portfolio manager of the Third Avenue Value Fund (TAVFX) as well as adjunct professor at Yale University. He invests by buying and holding stocks that trade at significant discounts to intrinsic value. Usually, only when a company undergoes a fundamental change in its business or capital structure that significantly alters the security’s inherent value does he sell. Whitman has achieved a 10-year cumulative return of 91.4% compared to the 16.4% return of the S&P 500. In the second quarter of 2011, he sold out of two stocks, Cimarex Energy Co. (XEC) and Brooklyn Federal Bancorp Inc. (BFSB).

    Cimarex Energy Co. (XEC)  


  • Marty Whitman Quarterly Commentary: Investing in the Distressed Credits of Troubled Companies

    There are four specialized areas where a distress investor ought to be reasonably knowledgeable, say knowledgeable enough to be an informed, intelligent client: • Securities Law and Regulation • Financial Accounting • Income Tax Law and Regulation • Bankruptcy Law Distress Investing divides into five separate, but sometimes related, businesses.

    1) Performing loans, where the great weight of probability is that the credit instruments will remain performing loans.  


  • Stock Market Valuation: April 3, 2011

    The current level of the S&P500 is 1,332, and the Dow is at 12,377--nearly unchanged from last month. As evidenced below, market valuations did not change much over the last month.

    I update market valuations on a monthly basis. The point of this article is to measure the stock market based on seven different metrics. This article does not look at the macro picture and try to predict where the economy is headed. It only uses these several metrics which have been very good past indicators of whether the market is fairly valued.  


  • Martin Whitman: DIVERSIFICATION REVISITED

    In the latest quarterly letter, legendary investor Martin Whitman revisited the topic of diversification.

    Each and every fund registered under the Investment Act of 1940 as amended, which is managed by Third Avenue Management LLC (“TAM or TAM Funds”) is considerably less diversified than most Registered Investment Companies (“RIC”) with which the TAM Funds might be compared. Certainly TAM funds are far, far less diversified than mutual fund industry averages.  


  • Martin Whitman Buys Applied Materials Inc., Sells Brookfield Asset Management Inc. Ltd., Forest City Enterprises Inc.

    This is the portfolio update for Third Avenue Value Fund, run by legendary value investor Martin Whitman. The current portfolio date is 10/31/2010.

    We have observed that Third Avenue Value Fund continues to make more sales than buys. The only stock the fund bought was again a technology stock, Applied Materials Inc. This is after the purchase of Sycamore Networks Inc. in the previous quarters.  


  • Martin Whitman Publishes 4Q10 Letter

    Third Avenue Management’s Martin Whitman and his portfolio managers published the following collection of letters to shareholders:

    TAF 4Q 2010 Shareholder Letters
      


  • Martin Whitman: Repealing Section 382 Could Have Saved Ambac Financial

    Investment Guru Martin Whitman wrote a column article and argued the necessity of repealing Section 382 of the tax code. In his opnion: “The benefits of repealing Section 382 far outweigh the costs to the U.S. Treasury in lost revenue. Eliminating the rule would sharply reduce corporate failures--large and small--and would allow cash-rich companies and financial institutions to deploy capital to support economic growth and job creation, ultimately expanding the country's tax base.”

    Excerpt:
    On Nov. 8 Ambac Financial declared bankruptcy, needlessly. Had Congress acted to change the tax code to give troubled corporations a much needed break, Ambac probably could have raised enough equity to rebuild its core business.  


  • Martin Whitman Celebrates 20 Years of Stewardship

    Investment Guru Martin Whitman, Chairman of Third Avenue Funds, celebrates two decades of stewardship as the Portfolio Manager of the Third Avenue Value Fund (TAVFX), the flagship mutual fund of Third Avenue Management LLC. The Fund was launched on November 1, 1990 and has been managed by Mr. Whitman since its inception. Ian Lapey has co-managed the Fund with Mr. Whitman since 2009.

    The company release this article in celebration of the event:  


  • Third Avenue Value Fund Q2: Buys Sycamore Networks Inc., Sells CIT, MDC, BIP

    Legendary value investor Martin Whitman just reported his portfolio as of 7/31. His fund just added to one position, and sold others. These are the details of buys and sells.

    Marty Whiteman and his co-manager Ian Lapey write great shareholder letters. In their most recent shareholder letter, they discussed their approach n market participation, and in the areas of performance, market timing, fees, and complexity. They discussed in details about their positions with POSCO (PKX) and Henderson Land Development Co. and Cheung Kong Holdings.  


  • Third Avenue Fund Comment on POSCO (PKX) and Henderson Land Development Co. and Cheung Kong Holdings

    Third Avenue Fund Comment on POSCO (PKX)

    POSCO – 5-YEAR REVIEW One of the largest detractors to the Fund’s 2010 performance has been our investment in Posco’s American Depository Receipts (“Posco Common”), which were down 21% year to date through July 31, 2010. Posco is a leading Korea-based steel producer. Like the 2010 common stock price declines of several of our other Asian blue-chips (e.g., Henderson Land, Cheung Kong and Wharf ), Posco’s reported business results have been strong. Specifically, Posco recently reported that second quarter operating profit increased by more than 10 times compared to the second quarter of 2009, driven by a 25% increase in revenues and a 23.1% operating margin (parent company), up from 2.7% a year ago. Apparently, the weakness in the stock so far in 2010 has been primarily driven by a less robust near-term earnings outlook.  


  • Third Avenue Value Fund Sells AVX Corp., MBIA Inc., Ambac Financial Group Inc.

    Legendary value investor Marty Whitman started his investment firm at the age of 60. He is still going strong. His shareholder letters are sharp and insightful, a very good read to those who like to learn. This is the portfolio update of his fund as of 4/30/2010.

    Third Avenue Value Fund did not have new positions in the last quarter. It did eliminated a few positions. To Marty Whitman and his co-manager Ian Lapey, MBIA and Ambac now are faced to the threat of permanent impairment. Please read the shareholder letter for details.  


  • Martin Whitman Letter to Shareholders

    This is an excerpt from Martin Whitman’s latest letter to shareholders:
    I recently finished reading the book, Freefall by Joseph E. Stiglitz, an eminent economist. It certainly seems obvious from reading Stiglitz’s prose that economists, whether left wing or right wing, have little conception in certain important areas of what is really involved in rehabilitating troubled companies, or what are the uses and limitations of financial accounting.

    In this letter, I discuss eight areas of financial misunderstanding:  


  • Applying Whitman’s Rules on His New Purchases: BANK OF NY MELLON CP, CIT Group Inc., Covanta Holding Corp., Cenovus Energy Inc, KeyCorp

    Business Day had an article featuring Martin Whitman entitled It will take more than a 45% loss to subdue this 85-year-old man. The article disclosed the rule-of-thumb valuation method that Whitman uses:
    • Financial services: book value.
    • Small banks: 80% of book value.
    • Insurance: adjusted book value.
    • Real estate: independent appraisal value.
    • Operating companies: 10 times peak earnings or less than net asset value.
    • Tech companies: twice book value, less than 10 times peak earnings, twice revenue and more cash than liabilities.
    Recently, We updated Whitman’s Quarter-end portfolio as of January 31, 2010. Applying his ruleof thumb, perhaps we can understand why he bought the stocks or how strictly he apply the rule in his purchasing.

    Here are Martin Whitman’s Top Purchases for the quarter ended on January 31, 2010:  


  • Martin Whitman Buys Covanta Holding Corp., Keycorp, Cenovus Energy Inc, Bank Of NY Mellon, Sells Ambac Financial Group Inc.

    Third Avenue Value Fund was founded by legendary value investor Martin Whitman. The fund invests heavily in Asia. Mr. Whitman writes great shareholder letters quarterly, where value follow can learn his insight.

    In the 3 months ended Jan. 31, 2010, the fund buys Covanta Holding Corp., Keycorp, Cenovus Energy Inc, Cit Group Inc., sells Ambac Financial Group Inc. during the 3-months ended 01/31/2010, according to the most recent filings of his investment company, Third Avenue Value Fund. Martin Whitman owns 52 stocks with a total value of $4.8 billion. These are the details of the buys and sells.  


  • Third Avenue Management Releases Quarterly Report and Comments on KeyCorp. and The bank of New York Mellon Corp.

    After stepping down from the front-line of day-to-day operation of the firm, Investment Guru, Chairman of Third Avenue Management Martin Whitman wrote his first “Chairman’s Letter” to Shareholders. The responsibility for usual quarterly letter of Third Avenue Value Fund (TAVF) has been placed on co-manager Ian Lapey.

    Martin Whitman: Chairman’s Letter  


  • Marty Whitman Reflects on Value Investing and Net-Nets

    Despite a snowstorm that caused the absence of several speakers, the Columbia Investment Management Conference in New York today included many interesting presentations and panel discussions. The highlight of the day was the conversation between Columbia Professor Bruce Greenwald and Martin Whitman, Founder and Portfolio Manager of Third Avenue Management.

    Mr. Whitman has a sixty year history in the investment management field and represents a distinguished voice of experience we can all learn from. This article includes several topics that were included in the discussion between Prof. Greenwald and Mr. Whitman but it is not a complete transcript and, unless otherwise noted, is based on the authors notes and recollection of the conversation rather than a presentation of direct quotes.  


  • WSJ: Whitman to Relinquish Third Avenue Post

    Veteran investor Martin Whitman will relinquish his role as Third Avenue Management LLC's co-chief investment officer, the Wall Street Journal reported on Monday. Whitman's protege Curtis Jensen will be Third Avenue's sole investment chief, according to the paper's online edition.

    Mr. Whitman, the firm's 85-year-old founder, will remain co-manager of the flagship Third Avenue Value Fund.  


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