Third Avenue Management (Trades, Portfolio), the creation of Martin Whitman (Trades, Portfolio), is guided by current balance sheets, not projected future revenues and earnings, when making investment decisions. While many of the gurus we follow struggled in 2014, Third Avenue Management (Trades, Portfolio) enjoyed returns in positive territory (4.88%). Third Avenue’s returns in 2013 were even better (18.84%); the returns in 2012 (27.48%) were better still.
Third Avenue Management (Trades, Portfolio) sold its stake in Target Corp (TGT, Financial), the discount retailer based in Minneapolis, Minnesota. Third Avenue sold the 753,665 shares it acquired in the last two quarters of 2014 for an average price of $67.5 per share. The investment had a 42% IRR according to the firm's shareholder letter.Â
Target has a market cap of $54.12 billion and an enterprise value of $64.17 billion. It has a Price/Book of 3.8 and a Price/Sales of 0.7. James Barrow (Trades, Portfolio), Dodge & Cox, HOTCHKIS & WILEY, Bill Frels (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Richard Snow (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Martin Whitman (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ray Dalio (Trades, Portfolio), John Buckingham (Trades, Portfolio), Mark Hillman (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Target in their portfolios.
Third Avenue also sold its stake in Hersha Hospitality Trust (HT, Financial), a real estate investment trust, trading his 3,581,694 shares for an average price of $26.86 per share. The divestiture had a -0.63% impact on Third Avenue’s portfolio.
Hersha Hospitality Trust has a market cap of $1.29 billion and an enterprise value of $2.23 billion. It has a P/E of 23.8, a Price/Book of 1.6 and a Price/Sales of 3.0. Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Hersha in their portfolios.
Third Avenue also sold its stakes in Urban Edge Properties (UE, Financial), Pinnacle Entertainment Inc (PNK, Financial), Era Group Inc (ERA, Financial), Regal Beloit Corp (RBC, Financial), Ally Financial Inc (ALLY, Financial) and 10 other companies.
Third Avenue bought a stake in Macerich Co (MAC, Financial), a California-based real estate investment trust, acquiring 629,026 shares for an average price of $87.48 per share. The purchase had a 1.33% impact on Third Avenue’s portfolio.
Macerich has a market cap of $12.23 billion and an enterprise value of $18.98 billion. It has a P/E of 7.7, a Price/Book of 2.2 and a Price/Sales of 9.9. Jim Simons (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Maerich in their portfolios.
Third Avenue also bought stakes in Dorman Products Inc (DORM, Financial), Rosetta Resources Inc (ROSE, Financial), Ascena Retail Group Inc (ASNA, Financial), Circor International Inc (CIR, Financial), Pacific Premier Bancorp Inc (PPBI), Verizon Communications Inc (VZ), Forest City Enterprises, Inc. (FCE.B), Hatteras Financial Corp (HTS) and Vodafone Group PLC (VOD).
Third Avenue added to 56 of its existing stakes in the first quarter. It bought 544,959 shares of PNC Financial Services Group Inc (PNC), a Pittsburgh-based financial services corporation, for an average price of $90.28 per share. The purchase had a 1.28% impact on Third Avenue’s portfolio.
PNC Financial Services has a market cap of $51.27 billion and an enterprise value of $72.12 billion. It has a P/E of 13.7, a Price/Book of 1.1 and a Price/Sales of 3.5. James Barrow (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), NWQ Managers (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), John Rogers (Trades, Portfolio), John Buckingham (Trades, Portfolio), David Dreman (Trades, Portfolio), Dodge & Cox, Tom Russo (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of PNC Financial Services in their portfolios.
Third Avenue also added 863,517 shares to its stake in Weyerhaeuser Co (WY), a forest products company based in Washington state, for an average price of $35.01 per share. The acquisition had a 0.72% impact on Third Avenue’s portfolio.
Weyerhaeuser has a market cap of $16.73 billion and an enterprise value of $20.99 billion. It has a P/E of 10.4, a Price/Book of 3.4 and a Price/Sales of 2.4. First Eagle Investment (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Manning & Napier Advisors, Inc, Martin Whitman (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), NWQ Managers (Trades, Portfolio) and Bill Frels (Trades, Portfolio) have shares of Weyerhaeuser in their portfolios.
Third Avenue also added to its stakes in such companies as Rayonier Inc (RYN), Comerica Inc (CMA), Apache Corporation (APA), Forest City Enterprises Inc (FCE.A) and Tanger Factory Outlet Centers Inc (SKT).
Third Avenue also reduced its stakes in 35 companies in the first quarter. The most significant reduction was its sale of 3,394,865 shares of KeyCorp (KEY), a Cleveland-based financial services company, for an average price of $13.74 per share. That deal had a -1.18% impact on Third Avenue’s portfolio.
KeyCorp has a market cap of $13.28 billion and an enterprise value of $19.01 billion. It has a P/E of 15.7, a Price/Book of 1.3 and a Price/Sales of 3.3. Martin Whitman (Trades, Portfolio), Richard Snow (Trades, Portfolio), Richard Pzena (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), David Dreman (Trades, Portfolio), John Buckingham (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Kahn Brothers (Trades, Portfolio) have shares of KeyCorp in their portfolios.
Third Avenue also sold 429,808 shares of its stake in Bank of New York Mellon Corp (BK), a Manhattan-based banking and financial services corporation, for an average price of $38.95 per share. That transaction had a -0.44% impact on Third Avenue’s portfolio.
Bank of New York Mellon has a market cap of $48.62 billion. It has a P/E of 19.2, a Price/Book of 1.4 and a Price/Sales of 3.1. Dodge & Cox, Chris Davis (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Warren Buffett (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio), Donald Yacktman (Trades, Portfolio), Mason Hawkins (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Yacktman Fund (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Charles Brandes (Trades, Portfolio), HOTCHKIS & WILEY, Martin Whitman (Trades, Portfolio), Yacktman Focused Fund (Trades, Portfolio), David Einhorn (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Robert Olstein (Trades, Portfolio), Brian Rogers (Trades, Portfolio), NWQ Managers (Trades, Portfolio), John Buckingham (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), John Rogers (Trades, Portfolio), David Dreman (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and Ken Fisher (Trades, Portfolio) have shares of Bank of New York Mellon in their portfolios.
Third Avenue also sold portions of its stakes in Brookfield Asset Management Inc (BAM), UniFirst Corp (UNF) and Leucadia National (Trades, Portfolio) Corp (LUK) among others.
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