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HAR, AMAT, KEY, FCE.A - Third Avenue Management Sells in Review

November 24, 2013 | About:
Sally Jones

Sally Jones

49 followers
The updated portfolio of Third Avenue Management, founded by value investor and Guru Martin Whitman, includes 163 stocks, 24 of them new, a total value at $5.17 billion, and a quarter-over-quarter turnover of 9%. The portfolio is currently weighted with top three sectors: financial services at 18.1%, basic materials at 16.1% and real estate at 15.1%. The stocks bought by Third Avenue Management in the past 12 months have an average return of 11.65%.

Here are the firm’s third quarter high-impact decreases, starting with the sell out of more than 8.8 million shares of Applied Materials Inc. (AMAT). The company reported financial results for its fourth fiscal quarter, ending Oct. 27, 2013, with orders of $2.09 billion, up 5% sequentially, and silicon systems orders up 16%. AMAT’s net income was $183 million for the reporting quarter, up from a loss of $(515) million in the same fiscal quarter of the prior year. The quarter’s earnings of $0.15 per share (GAAP) were also up from $(0.42) per share in the prior year. Net sales for the quarter were up 1% sequentially, at $1.99 billion, compared to 1.65 billion in the same fiscal quarter of the prior year. Operating income was $211 million for the quarter, up from a loss of $(499) million in the fourth quarter of fiscal year 2012.

Applied Materials Inc. (AMAT): Sold Out

Impacts Portfolio: -2.6%

Up 65% over 12 months,Applied Materials Inc. has a market cap of $20.75 billion; its shares were traded at around $17.25 with a P/E ratio of 82.10. The dividend yield is 2.26%.

Guru Action: As of Sept. 30, 2013, Third Avenue Management sold out AMAT, unloading 8,858,678 shares at an average price of $15.97, for a loss of 8%, the holding’s lowest gain in five years of pure gains.

The firm’s highest gain of 58.3% was made on 544,496 shares bought at an average price of $10.90 per share, in the fourth quarter of 2012.

Track historical pricing, revenue and net income:

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KeyCorp (KEY): Reduced

Impacts Portfolio: -1.68%

Current Shares: 12,680,969

Up 53% over 12 months, KeyCorp, a banking company, has a market cap of $11.64 billion; its shares were traded at around $12.98 with a P/E ratio of 13.50. The dividend yield is 1.62%.

Guru Action: As of Sept. 30, 2013, Third Avenue Management reduced its position by 38.13%, selling 7,815,781 shares at an average price of $11.95 per share, for a gain of 8.6%.

The firm has averaged a gain of 85% on 22,407,428 shares bought at an average price of $7.03 per share. On shares sold, the firm averaged a gain of 14% on 9,726,459 shares sold at an average price of $11.35 per share.

Track historical pricing, revenue and net income:

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Forest City Enterprises Inc. (FCE.A): Reduced

Impacts Portfolio: -1.19%

Current Shares: 7,125,350

Up 26% over 12 months, Forest City Enterprises Inc., a real estate company, has a market cap of $3.9 billion; its shares were traded at around $19.47 with a P/B of 2.30.

Guru Action: As of Sept. 30, 2013, Third Avenue Management reduced its position by 32.24%, selling 3,389,870 shares at an average price of $18.15, for a gain of 7.3%.

The firm has averaged a gain of 150% on 5,509,094 shares bought at an average price of $7.80 per share. On shares sold, the firm averaged a gain of 27% on 21,132,222 shares sold at an average price of $15.34 per share.

Track historical pricing, revenue and net income:

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Harman International Industries Inc. (HAR): Sold Out

Impacts Portfolio: -0.81%

Up 111% over 12 months, Harman International Industries Inc., a consumer electronics company, has a market cap of $5.5 billion; its shares were traded at around $81.37 with a P/E ratio of 42.40. The dividend is 1.11%.

Guru Action: As of Sept. 30, 2013, Third Avenue Management sold out its HAR, selling 759,611 shares at an average price of $62.45, for a gain of 30.3%, the trading history’s lowest point.

In six quarters of double-digit gains, the holding topped out at a gain of 94.2% on 352,571 shares bought at an average price of $41.90 per share, in the fourth quarter of 2012.

Track historical pricing, revenue and net income:

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Founded by chairman and portfolio manager, Martin Whitman, Third Avenue Management is an asset management firm that uses a disciplined value approach. Third Avenue specializes in global and domestic equities, debt instruments, and special situations.

Third Avenue Management’s CEO is David M. Barse.

Have an inside look at Martin Whitman’s Third Avenue Value Fund.



Here is the complete portfolio of Martin Whitman.

Be sure to read:

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

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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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 (1 vote)

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