Third Avenue Management (Trades, Portfolio), a renowned investment firm, recently disclosed its portfolio updates for the second quarter of 2023, which ended on June 30, 2023. The firm is known for its value-oriented investment philosophy, focusing on undervalued securities that offer attractive long-term potential. The firm's approach is characterized by rigorous fundamental analysis and a focus on intrinsic value.
According to the recent 13F filing, the firm's portfolio contained 58 stocks with a total value of $606 million. The top holdings were Tidewater Inc. (TDW, Financial) with 10.05%, Warrior Met Coal (HCC) with 8.64%, and Deutsche Bank (DB) with 5.28% of the portfolio.
Top Trades of the Quarter
The following were the firm's top three trades of the quarter:
Tidewater Inc (NYSE:TDW)
Third Avenue Management (Trades, Portfolio) reduced their investment in Tidewater Inc. by 295,408 shares, impacting the equity portfolio by 2.23%. During the quarter, the stock traded for an average price of $45.76. As of August 14, 2023, TDW's price was $62.6 with a market cap of $3.3 billion. The stock has returned 204.18% over the past year. GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 3 out of 10. In terms of valuation, TDW has a price-earnings ratio of 66.70, a price-book ratio of 3.57, a EV-to-Ebitda ratio of 18.40, and a price-sales ratio of 4.09.
Valaris Ltd (NYSE:VAL)
During the quarter, Third Avenue Management (Trades, Portfolio) bought 110,522 shares of Valaris Ltd, bringing the total holding to 419,726 shares. This trade had a 1.15% impact on the equity portfolio. The stock traded for an average price of $60.35 during the quarter. As of August 14, 2023, VAL's price was $74.34 with a market cap of $5.51 billion. The stock has returned 47.21% over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 2 out of 10. In terms of valuation, VAL has a price-earnings ratio of 47.09, a price-book ratio of 4.46, a EV-to-Ebitda ratio of 19.47, and a price-sales ratio of 3.26.
Lennar Corp (NYSE:LEN.B)
Third Avenue Management (Trades, Portfolio) reduced their investment in Lennar Corp by 60,100 shares, impacting the equity portfolio by 0.92%. During the quarter, the stock traded for an average price of $98.59. As of August 14, 2023, LEN.B's price was $112.53 with a market cap of $35.34 billion. The stock has returned 64.72% over the past year. GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, LEN.B has a price-earnings ratio of 7.69, a price-book ratio of 1.44, a price-earnings-to-growth (PEG) ratio of 0.24, a EV-to-Ebitda ratio of 5.99, and a price-sales ratio of 1.05.
In conclusion, Third Avenue Management (Trades, Portfolio)'s Q2 2023 13F filing reveals a strategic approach to portfolio management, with significant trades in Tidewater Inc., Valaris Ltd, and Lennar Corp. The firm's investment decisions reflect its commitment to value investing and rigorous fundamental analysis.
