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Mirror Portfolios - Martin Whitman and Third Avenue Management Top Holdings

Sally Jones

Sally Jones

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Here’s an update on the current top holdings of Martin Whitman’s Third Avenue Value Fund (TAVFX) at Third Avenue Management. Guru Whitman is the founder, chairman and portfolio manager of the Third Avenue Value Fund where he was CEO until 2003. David Barse is currently CEO of Third Avenue Management.

As of July 1, 2013, Martin Whitman’s Third Avenue Value Fund lists 36 stocks, one of them new, and a total value of $2.33 billion with a quarter-over-quarter turnover of 3%. His fund is heavily weighted in real estate at 30.1% and financial services at 27.9%.

Martin Whitman’s top holdings closely mirror those of Third Avenue Management.

No. 1: Covanta Holding Corporation (CVA)

Weighting: 6.2%

Shares Owned: 7,193,557

Share Price: $20.27


With 5.47% of shares outstanding, Martin Whitman is a major shareholder of Covanta Holding Corporation, a waste disposal company that converts waste to energy in the renewable energy production industry. According to his trading history, Whitman has gained 31% on 8,541,918 shares bought at an average price of $16.07.

Up 18% over 12 months, Covanta Holding Corporation (CVA) has a market cap of $2.67 billion; its shares were traded at around $20.27 with a P/E ratio of 26.00 and P/S ratio of 1.64. The dividend yield of Covanta Holding Corporation stocks is 3.10%. Covanta Holding Corporation has had an annual average earnings growth of 2.1% over the past five years.



The company’s top Guru shareholder, Third Avenue Management, also holds CVA for over 7.8 million shares. Trading history:




No. 2: POSCO (PKX)

Weighting: 5.9%

Shares Owned: 1,916,774

Share Price: $70.20


As second top Guru Shareholder, Martin Whitman owns 0.62% of shares outstanding in the Korean steel company, POSCO (PKX), second only to Third Avenue Management, owning 0.9%. Whitman’s highest earning quarter for PKX was in the first quarter of 2009 for a gain of 9.1%. This holding has shown losses since the first quarter of 2012.

Down 13% over 12 months, POSCO has a market cap of $21.27 billion; its shares trade at around $70.20 with a P/E ratio of 11.90 and P/B ratio of 0.60. The dividend yield of POSCO stocks is 2.42%. POSCO has had an annual average earnings growth of 2.8% over the past 10 years.

Historical share pricing:



No. 3: Bank of New York Mellon Corp (BK)

Weighting: 5.9%

Shares Owned: 4,887,879

Share Price: $31.16


With so many billionaires holding BK shares, Martin Whitman lands in tenth place as a major shareholder, owning 0.47% shares outstanding. Third Avenue Management holds 0.82%. Whitman has made gains with BK in the last five quarters of trading. His highest gain of 42.2% was in the second quarter of 2012.

Up 46% over 12 months, Bank of New York Mellon Corp. (BK) has a market cap of $35.5 billion; its shares were traded at around $31.16 with a P/E ratio of 24.10 and P/S ratio of 2.50. The dividend yield of Bank of New York Mellon Corp stocks is 1.75%.



Martin Whitman founded the predecessor to the Third Avenue Funds in 1986 and M.J. Whitman, a full service broker-dealer affiliated with Third Avenue in 1974. He managed the flagship Third Avenue Value Fund from 1990 through March 1, 2012. He was Third Avenue's Chief Investment Officer from its founding through January 2010. In addition to an illustrious investment career, Whitman is also a philanthropist. He made a large gift to his alma mater Syracuse University in 2003.

Here is the complete portfolio of Martin Whitman.



Also check out:

1. Martin Whitman's Undervalued Stocks

2. Martin Whitman's Top Growth Companies

3. Martin Whitman's High Yield stocks

4. Stocks that Martin Whitman keeps buying

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 5.0/5 (2 votes)

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