Third Avenue Management

Third Avenue Management

Last Update: 12-09-2015
Related: Martin Whitman

Number of Stocks: 130
Number of New Stocks: 13

Total Value: $3,674 Mil
Q/Q Turnover: 9%

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

Third Avenue Management Watch

  • Third Avenue Value Fund Trims Stake in NVIDIA

    Legendary guru Martin Whitman has more than 67 years of experience in the investment industry. A Bronx native, Whitman began his career shortly after graduating from Syracuse University with a degree in business administration in 1949. Whitman seized an opportunity to begin his career working as a security analyst for Shearson Hammill. After gaining valuable experience, Whitman took advantage of another opportunity and began working as an investment banker for the owners of the Sears Roebuck fortune, the Rosenwald family who actively managed Sears' department stores in the early 1900s.


    In 1990, he founded Third Avenue Management, whose portfolio owns about 130 stocks.

      


  • Third Avenue Buys Baxter Spin-Off

    Guru Martin Whitman is the founder of Third Avenue Management (Trades, Portfolio). Whitman was born in the Bronx, where he grew up. He went on to graduate from Syracuse University with a degree in business administration. Whitman also has a master's in economics from the The New School.


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  • Berkshire Hathaway, Wells Fargo, China Mobile, Novartis, Bank of America Reach 52-Week Lows

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Berkshire Hathaway Inc. reached the 52-week low of $193,900

      


  • What Third Avenue Management Thinks Market Has Over-Punished

    With volatility and enthusiasm for growth stocks marking the year-end market, long-term investors Third Avenue Management (Trades, Portfolio) spotted some compelling areas facing temporary setbacks to invest in and gave their trading details in their fourth quarter portfolio update Tuesday.

    Third Avenue Management (Trades, Portfolio), a firm chaired by value investing pioneer, Marty Whitman, largely ignores macroeconomic whims in favor of buying companies based on their estimate of the worth of the enterprise. The managers also embrace growth as long as it means growth of book value at double-digit rates. They don’t fall for short-term catalysts, buybacks and short-term earnings boosts that draw many investors in the current environment.  


  • Third Avenue Value Fund Sells Nearly Half of Stake in POSCO

    Although Martin Whitman (Trades, Portfolio) has a reputation for being a “buy and hold” investor, many of Third Avenue Value Fund's largest transactions in the fourth quarter, which ended Oct. 31, 2015, were reductions.


    The fund’s most significant fourth-quarter transaction was the reduction, by more than 48%, of the stake in POSCO (NYSE:PKX), a Pohang, South Korea-based steelmaking company. Third Avenue sold 572,600 shares for an average price of $39.14 per share. The deal had a -1.41% impact on the portfolio.

      


  • Third Avenue Cuts Stake in Powell, BlackRock

    Third Avenue Management (Trades, Portfolio) reduced its position in many stocks during the third quarter. Some of the largest reductions were in Powell Industries Inc. (POWL), BlackRock Credit All Inc Trust IV. (BTZ) and Allscripts Healthcare Solutions Inc.


    Third Avenue Management (Trades, Portfolio), led by its founder and chairman, Martin Whitman (Trades, Portfolio), are balance sheet value investors.

      


  • Third Avenue Management's Annual Report

    Dear Fellow Shareholders:


    At Third Avenue Management (Trades, Portfolio), companies, the securities they issue, and their managements and/or control groups are appraised from three different angles:

      


  • Third Avenue International Value Fund Commentary - Part 3

    Investment Activity


    In the following section we will discuss the Fund’s investment activity. Five new securities were purchased during the quarter including Cosan Ltd, discussed above. Four of the new securities were first purchased on August 24th during that day’s market calamity. We also sold three positions: Otsuka Corp., discussed above in paragraphs covering Japan, and two long-held U.K. companies, Segro plc and Vodafone plc.

      


  • Third Avenue International Value Fund Commentary - Part 2

    Investment hyperbole seems to have a way of marking cyclical turns as a strong contra-indicator. I don’t recall reading the obituary but I assume the “commodity super-cycle” has been declared dead. If one is to believe newspapers and most sell-side research, commodities have now entered into a period of “lower for longer”. In reality, the commodity super-cycle never existed in the first place outside of media hyperbole.


    In 2011 with industrial commodity and oil and gas prices far above current price levels, Bobby Tudor would have told us that this time is not different, that we were simply at a point in the cycle where the locus of supply and demand dictates a high price level, which in turn will incentivize investment to increase production of various commodities to the extent that resources are available to do so. In the case of crude oil, we saw an incredible supply response in large part from North American shale production followed by the end of Saudi Arabia’s graciousness in accommodating the world’s growing crude production by continuously shrinking its own production to balance the market.

      


  • Third Avenue International Value Fund Commentary - Part 1

    Dear Fellow Shareholder,


    Value Investing & Cyclicality

      


  • Third Avenue Real Estate Value Fund Commentary - Part 2

    “Superforecasting”


    "Superforecasting," by Philip E. Tetlock and Dan Gardner, is a recently published book that studies the idea of whether certain individuals can be better at predicting measurable outcomes, and if so, how they go about achieving those superior results. Through Tetlock and Gardner’s years of studies they seemed to be able to identify a small sub-set of individuals that made markedly more accurate predictions across a wide range of fields than so called experts in those respective areas. And not just over the short-term but over a number of years. To summarize the book, the “superforecasters” weren’t always ones with the highest IQ scores, but instead individuals that followed a very similar process of predicting outcomes whereby they would: (i) gather a wide range of information on a subject with a preference for comparing contrasting views; (ii) use that information to make probability weighted predictions or forecasts; and then (iii) continuously reassess that forecast as new information became available, either supporting or disproving the original prediction as well as incorporating other views. Frankly the process outlined in the book is not dissimilar from the one utilized by the Third Avenue Real Estate team when analyzing investment opportunities, investing in securities, and managing the Fund. To wit, we engage in deep-dive fundamental research, utilize those findings to derive risk-adjusted return expectations, and then concentrate the Fund’s capital around those top ideas while adjusting the portfolio as return expectations change either through changes in price or the incorporation of additional information.

      


  • Third Avenue Real Estate Value Fund Commentary - Part 1

    Dear Fellow Shareholders:


    We are pleased to provide you with the Third Avenue Real Estate Value Fund’s (Fund) report for the quarter ended October 31, 2015.

      


  • Third Avenue Management Profits From Encore Wire But Logs Loss From EP Energy

    In third quarter trading, Third Avenue Management recorded both big profits and big losses.


    Third Avenue Management (Trades, Portfolio) was founded by legendary value investor Martin Whitman (Trades, Portfolio), and the firm manages mutual funds, separate accounts and hedge funds. The mutual funds include Third Avenue Value Fund, managed by Whitman, Third Avenue Small-Cap Value Fund, managed by Curtis Jensen, Third Avenue Real Estate Value Fund, managed by Michael Winer, and Third Avenue International Value Fund, managed by Amit Wadhwaney.

      


  • Third Avenue Management's New Positions

    Third Avenue Management (Trades, Portfolio) was founded by legendary value investor Martin Whitman (Trades, Portfolio). It manages mutual funds, separate accounts and hedge funds.


    During the third quarter, Third Avenue purchased 12 new holdings, including the following.

      


  • Third Avenue Management Forced to Liquidate Focused Credit Fund

    Dear Fellow Shareholders,

      


  • Third Avenue Management Comments on Lundin Mining

    Lundin Mining (TSX:LUN) is a Vancouver headquartered base metals mining company. The company’s operations span Chile, Portugal, Spain, Sweden, United States and D.R.C. and include several assets with exceptionally low cost of production. Lundin Mining also comes with among the best balance sheets in the mining industry and one of the industry’s shrewdest management teams. As compared to the Fund’s other base metal holdings, Lundin Mining falls between Antofagasta and Capstone from a valuation perspective, with Capstone being the least expensive, while adding geographic and asset-risk diversification benefits. The combination of the three holdings represents tremendous long-term value.

    From Third Avenue Management (Trades, Portfolio)'s fourth quarter 2015 International Value Fund commentary.  


  • Third Avenue Management Comments on Millennium & Copthorne

    Millennium & Copthorne (LSE:MCL) is a global hotel owner and operator based in the United Kingdom. The company’s portfolio is primarily focused on global “gateway cities”, such as New York, London, and Singapore but also includes properties in other US, European and Asian regions. The company has accumulated an extremely valuable property portfolio, which the current market price fails to appreciate. The company is also exceedingly well-capitalized. Millenium and Copthorne is ultimately controlled by City Developments Ltd of Singapore, which has continued to increase its ownership of the company materially through recent share purchases in the open market. Finally, the company recently appointed a new CEO and commenced a number of initiatives designed to improve operating performance. We expect to realize a value much closer to underlying net asset value as a result of improved operations or an eventual transaction involving the company.

    From Third Avenue Management (Trades, Portfolio)'s fourth quarter 2015 International Value Fund commentary.  


  • Third Avenue Management Comments on Interfor

    Interfor (TSX:IFP) is the fourth largest lumber producer in North America. While headquartered in Vancouver, B.C., the company has a fairly balanced production profile with nearly two thirds of its lumber capacity located in the United States. Interfor has participated in a consolidating industry by making a number of acquisitions, growing the proportion of its production located in the US south. The recovery in US single-family housing starts has been sufficiently weak so as to keep lumber prices low by historical standards. Lumber prices are currently at levels sufficient to have caused recent US lumber mill shutdowns. Our expectation is that US single family housing will continue to improve, benefiting the North American lumber industry in the form of improved utilization rates, improved profitability and continued merger and acquisition activity. Interfor would make a terrific acquisition for several industry participants. In the meantime, Interfor will continue to be stewarded by one of the industry’s better management teams.

    From Third Avenue Management (Trades, Portfolio)'s fourth quarter 2015 International Value Fund commentary.  


  • Third Avenue Management Comments on Prosegur, Compania de Seguridad SA

    Prosegur, Compania de Seguridad SA

      


  • Third Avenue Management Comments on Trinity Place Holdings

    Another addition to an existing position came from the Fund committing to subscribe to the Trinity Place Holdings (Trinity Place) Rights Offering. Trinity Place (OTCPK:TPHS) was formerly the retail operations of Syms and Filene’s Basement that emerged from bankruptcy in 2013 as a company focused on realizing the value from the remaining assets, including: (i) well-located real estate properties, (ii) intellectual property primarily from Filene’s Basement, and (iii) substantial tax attributes. Since the Fund made its initial investment in 2013, the company has achieved a number of significant milestones under the leadership of its CEO, Matt Messinger, and is now primarily focused on the biggest opportunity within the company’s portfolio: a 240,000 square foot development project on the site of the former Syms store in lower Manhattan. To fund this project, the company will utilize existing resources, construction financing, and proceeds from the company’s $30 million Rights Offering, which is fully backstopped by existing shareholders, including the Fund’s commitment to take up at least its pro-rata share of the offering. The capital raise should enable the company to unlock substantial value in the company’s existing assets. Additionally, it creates the opportunity for Trinity Place to continue to evolve into a platform for additional value creating investments in real estate and real estate related opportunities over time.

    From Third Avenue Management (Trades, Portfolio)'s fourth quarter 2015 Real Estate Value Fund commentary.  


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