Martin Whitman

Third Avenue Value Fund

Last Update: 2013-03-06
Related: Third Avenue Management

Number of Stocks: 39
Number of New Stocks: 3

Total Value: $2,290 Mil
Q/Q Turnover: 8%

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Martin Whitman Watch

Marty Whitman Shareholder Letter: approximately 39% of the portfolio is in Hongkong
by - May 19, 2009
Management reluctantly sold the Fund’s positions in Hutchison Whampoa Common, St. Joe Common and Suncor Common. The sales of MGIC Common and Radian Common reflect a view that both companies may be suffering permanent impairments, as the U.S. housing market continues to deteriorate. Datascope Common was sold in a take-over transaction at a profit.

As of April 30, 2009, approximately 39% of the portfolio was invested in the common stocks of companies based in Hong Kong. Recently, all of our Hong Kong holdings reported their 2008 results. Although most companies reported sharp declines in earnings, owing to lower revaluation gains on investment properties and reduced development profits from asset sales, all of the companies in which the Fund has common stock investments were profitable. Continue Reading »
Marty Whitman’s adjustments to Graham’s net net formula; Comments on Sycamore Networks Inc (SCMR)
by Greenbackd - May 05, 2009
Long-term readers of Greenbackd might remember our initial struggle to apply the net net / liquidation formula described by Benjamin Graham in the 1934 Edition of Security Analysis in the context of modern accounting. Putting aside our attempt to include and tweak the discounts to PP&E (kind of like fixing the smile on the Mona Lisa), most embarassing was our failure to factor into the valuation off-balance sheet liabilities and contractual obligations. The best thing that we can say about the whole sorry episode is that we got there in the end and we’ve been applying a more robust formulation for the last quarter. With that in mind, we thought it was particularly interesting to see the Financial Post’s article, Veteran tweaks Graham’s rule to find bargains (via Graham and Doddsville), which details the refinements legendary value investor Marty Whitman makes to Graham’s net-net formulation.

According to the article, Whitman makes the following adjustments to Graham’s 90-year old formula: Continue Reading »
Martin Whitman Suing MBIA Over Business Split
by - Apr 08, 2009
April 7 (Bloomberg) -- MBIA Inc. was sued by Third Avenue Management LLC, the New York company founded by mutual fund manager Martin Whitman, over claims the insurer’s split of its bond-insurance businesses hurts debt holders.

Three mutual funds managed by Third Avenue bought notes issued by MBIA Insurance Corp. in February 2008 based on assurances that the company was recapitalizing following losses in its structured finance insurance business, according to a Delaware Chancery Court lawsuit. Continue Reading »
Marty Whitman Shareholder Letter: Investing in Net-Nets
by - Mar 06, 2009
About three quarters of the Fund’s common stock portfolio are invested in what Fund Management describes as Net-Nets. A Net-Net is defined as a common stock issue where the market value of high quality assets, usually readily saleable, exceeds by a comfortable margin the market value of the company’s equity capitalization after deducting all liabilities.

The concept of Net-Nets was invented by Graham and Dodd, the godfathers of value investing. Third Avenue has refined the Graham and Dodd definition of Net-Nets. Graham and Dodd define Net-Nets on pages 561 and 562 of the 1962 edition of Security Analysis, Principles and Technique as follows: Continue Reading »
Third Avenue's Distressed Debt Play
by - Feb 26, 2009
Value stock picker Marty Whitman had a rough 2008. Now he's looking for deals in distressed debt where, he says, Third Avenue can exercise some control.

Martin J. Whitman wrote the book on distressed debt investing. Literally. His 256-page tome on the subject comes out next month. Meanwhile, the 84-year-old founder and co-chief investment officer of Third Avenue Funds is aiming to write a new chapter in his own storied career by pouring up to 35% of its Value, Small-Cap Value and Real Estate Value funds into distressed debt. Currently the funds are limited to 10%, but Whitman has asked his board to approve a change Continue Reading »
Martin Whitman Buys Sears Holdings Corp., Nabors Industries Ltd., and EnCana Corp. Sells Raymond James Financial Inc., Legg Mason Inc., Alico Inc.
by - Dec 29, 2008
Facing severe fund redemptions, Marty Whitman had to sell cheap to buy cheaper. With his fund down about half, 86-year old Marty Whitman is learning new lessons. These are his buys and sells during the third quarter.

Martin Whitman buys TOKIO MARINE ADR, sells Raymond James Financial Inc., ACA Capital Holdings Inc., Alico Inc., Applied Materials Inc., Berkshire Hills Bancorp Inc., Brookline Bancorp Inc., Jefferies Group Inc., Intel Corp., Legg Mason Inc., Microsoft Corp., USG Corp. during the 3-months ended 10/31/2008, according to the most recent filings of his investment company, Third Avenue Value Fund. Martin Whitman owns 102 stocks with a total value of $4.7 billion. These are the details of the buys and sells. Continue Reading »
Martin Whitman on Graham and Dodd
by - Dec 26, 2008
"There is a lot learning. Graham and Dodd, they pioneered value, but time to move on"
Watch the following video in which Martin Whitman commented on Graham and Dodd. Continue Reading »
Martin Whitman comment on his holdings
by - Dec 11, 2008
GuruFocus guru, legendary investor Martin Whitman comment on his holdings
---------------------------- Continue Reading »
The opportunity of a lifetime
by - Nov 26, 2008
Indeed, today the opportunity of a lifetime seems to be present for passive investors who follow a few simple caveats:

1) Be a buy-and-hold investor; 2) Don’t use borrowed funds to invest; 3) Don’t own the common stocks of companies which need relatively continual access to capital markets if they are to remain going concerns. Even the best and highest quality of such companies can be in trouble in today’s environment: General Electric Goldman Sachs Merrill Lynch Morgan Stanley Continue Reading »
The Year of Wall Street's Fallen Idols
by - Nov 15, 2008
Millions of Americans are reeling from investment losses this year. For many, the financial cost of the red ink is only part of the misery. They're also kicking themselves for the losses.

Marty Whitman, the legendary septuagenarian who co-manages Third Avenue Value, has seen crises come and go. There are few you could trust more in a panic. But his fund has almost halved this year. Bill Miller, the famous manager at Legg Mason Value, has fallen by nearly 60%. And that's not even the worst of it. Miller's more flexible, go-anywhere fund, Legg Mason Opportunity Trust, is down by two-thirds since the start of the year. Continue Reading »
Third Avenue 4th qtr commentary
by - Nov 14, 2008
[www.thirdavenuefunds.com] Continue Reading »
Once in a lifetime opportunity!!!
by - Oct 25, 2008
Why is it that everyone gets excited when prices rise on investments and run for the hills when they fall? if you have a time horizon of greater than 12 months, why aren't you excited about what is occuring in the markets today. The world's best companies are being priced like they are an emerging market company with single digit P/E ratios. I know the talking heads on CNBC are as usual creating confusion and anxiety on their way of turning business news into entertainment rather than reporting (of course why should they be different from any of the other news sources?).

If one understands that a rationale investor is always interested in only investing in the best opportunity (risk/reward) for his money, then the case for stocks is OUTSTANDING right now. As far as I am concerned and though it could definitely be broken down into greater sub-sets of assets for this post lets keep it easy. There are basically 5 major asset classes. They are as follows: stocks, treasury bonds, money market or cash, real estate and finally commodities. Each of these asset classes competes for an investor's money. They do that by providing a return on investment. Remember the return on investment is greatly influenced by the price paid for the investment. Price is not the only requirement but an extremely important one for the level of future returns (In fact, if you get a low enough price on the investment it can ease the pain of missing a lot of the other variables that effect an investment.). Remember: Buy Low, Sell High. Continue Reading »
Whitman Sampler Of Value Stocks
by - Oct 18, 2008
Few investors in the market today are as bear-market-seasoned and savvy as Marty Whitman, 84-year-old founder of M.J. Whitman LLC, chairman and founder of Third Avenue Management and portfolio manager of Third Avenue Value Fund. Like Sam Zell, Leon Black and Eddie Lampert, Whitman's roots are in distressed-company investing.

Investors in distressed assets, also known as "vultures," prey on ailing companies and buy up their debt or equity for pennies on the dollar. They're hoping to gain control in any restructuring and make windfalls when the assets either appreciate or are sold. Continue Reading »
Whitman's glass-half-full take on market
by - Sep 18, 2008
Marty Whitman, the octogenarian dean of deep-value investing, sees great bargains to be snapped up from the current stock market meltdown.

"It's a great time," enthused the 83-year-old founder of New York-based Third Avenue Management LLC before speaking yesterday at a conference organized by AIC Ltd. Continue Reading »
Gurus Scouring Japan
by Holmes R Osborne - Sep 11, 2008
With all of the talk about the subprime mess in America, the nascent Asian markets, and the latest hot commodity, people are ignoring the world’s second largest stock market: Japan. Our best gurus are not. They are performing their old fashioned, bottom-up stock picking that’s made them famous over the years.

Marty Whitman’s Third Avenue has loaded up on many Japanese companies including: Mitsubishi Estate (MITEF.PK), Toyota Industries (TYIDF.PK), and RHJ International (RHJIF.PK). These companies all have loads of cash and are trading below break-up value, or net asset value as Whitman likes to say. Continue Reading »
Marty Whitman’s Conviction in Ambac is Working out; Still waiting for MBIA and Radian Group?
by - Aug 29, 2008
Legendary investor Marty Whitman’s purchases of bond and mortgage insurers Radian (RDN), Ambac (ABK) and MBIA (MBI) have been very controversial, and widely discussed. Watching an investment plunging 95% and continuing to buy more, what kind of conviction does that need?

Will these investment work out? We are still waiting to see. But the investing in Ambac is working out. With this article we will to review his moves in these bond insurers. Continue Reading »
Martin Whitman Buys Sycamore Networks Inc., Sears Holdings Corp., Sells Alliance Data Systems Corp., Fair Isaac Corp., Millea Holdings Inc.
by - Aug 20, 2008
Legendary Investor Marty Whitman has had some hard time with some of his holdings. But he is convinced and buying more as the stock prices decline. In his latest letter, he discussed the shorts again. These are his buys and sells during the second quarter. Martin Whitman owns 102 stocks with a total value of $7.5 billion.

Martin Whitman buys TOKIO MARINE ADR, Sycamore Networks Inc., Sears Holdings Corp., sells Alliance Data Systems Corp., Fair Isaac Corp., Millea Holdings Inc., Pharmaceutical Product Development Inc., White Mountains Insurance Group Ltd. during the 3-months ended 07/31/2008, according to the most recent filings of his investment company, Third Avenue Value Fund. Martin Whitman owns 102 stocks with a total value of $7.5 billion. These are the details of the buys and sells. Continue Reading »
Marty Whitman Shareholder Letter
by - Aug 19, 2008
As a consequence of the need to be so sensitive to market prices, bear raiders seem to tend very much to engage in nefarious activities, whether legal or not. First, the shorts condition markets any way they can, whether by spreading rumors or issuing analyses where the consequences

for long security holders are deemed to be draconian if the buyer continues to hold. Sometimes the true intentions of the short sellers are masked. For example, William Ackman appears to be disingenuous when he writes and talks about saving MBIA’s policyholders. Why does he care about policyholders? Ackman’s objective is to drive down the market price of MBIA securities. The bear raiders have enjoyed great success. Bear Stearns lost its creditworthiness when customers and counterparties reacted to rumors and stopped doing transactions with Bear. Lehman Brothers Holdings has been hurt by the same kind of rumor mongering. TAVF no longer will invest knowingly in the common stocks of companies that need relatively continuous access to capital markets; or where customers and counterparties can flee without appreciable costs. Fund management does not believe that Ambac and MBIA, both of which are the objects of bear raiders, can ever have a Bear Stearns type of experience. The great weight of probabilities seems to be that both companies enjoy such financial strength that they can survive almost any stress. For TAVF, the activities of the short sellers have meant that securities became available for purchase at far, far lower prices than would otherwise be the case. Continue Reading »
Re: Third Avenue plans private fund
by - Aug 05, 2008
Commodity-

Given your ever stout stance on commodities and in opinion on investment opportunities, I have to ask the following question: Continue Reading »
Third Avenue plans private fund
by - Aug 05, 2008
[online.wsj.com]

The fund plans are for distressed investing. Bullish? Continue Reading »