Value investors at Third Avenue Management (Trades, Portfolio), a firm undergoing a number of changes, reported on Monday that it added seven stocks to its famed Third Avenue Value Fund in the first quarter.
Most of the first-quarter holdings trade on foreign exchanges, meaning they likely came to the portfolio as a result of its merger with the Third Avenue International Value Fund, announced March 19. Co-managed by Matthew Fine and Michael Fineman, the combination aimed to help “streamline its lineup of funds and strengthen its focus on deep-value investing” while reducing its expense ratio, according to a release.
Founded in 1990 by the legendary Martin Whitman (Trades, Portfolio), the Third Avenue Value Fund includes stocks from all industries, regions and market caps that managers identify as undervalued based on fundamental analysis.
In September, Third Avenue also said it would intensify its focus on value investing, shaking up its management teams and streamlining its funds.
“Third Avenue’s investment approach seems to be unique,” Martin Whitman (Trades, Portfolio), Third Avenue’s chairman emeritus, said in a release. “In equity investing at Third Avenue the concentration is on the securities of companies which are well capitalized, which are selling at discounts from readily ascertainable net asset value, and where public disclosures are comprehensive and highly useful to the analyst. The new management at Third Avenue is extremely able and, in my opinion, likely to realize important benefits for the shareholders of the Third Avenue Funds. As always, the Third Avenue emphasis will not be on obtaining superior information. Rather it is, and will be, to use the available information in a superior manner.”
Stocks freshly added to the Third Avenue Value Fund during the first quarter were: Lundin Mining Corp. (TSX:LUN, Financial), CK Asset Holdings Ltd. (HKSE:01113, Financial), Henderson Land Development Co. Ltd. (HKSE:00012, Financial), Forest City Real Estate Trust Inc. (FCE.A, Financial), Bayerische Motoren Werke AG (XTER:BMW, Financial), Capstone Mining Corp. (TSX:CS) and Lennar Corp. (LEN.B).
Lundin Mining Corp. (TSX:LUN, Financial)
Third Avenue purchased 4,751,597 shares of Lundin Mining Corp., which had a first-quarter average price of around 9 Canadian dollars. The holding represents 3.5% of the portfolio.
Lundin Mining Corp. has a market cap of 6.18 billion Canadian dollars; its shares were traded around 8.45 Canadian dollars Tuesday with a P/E ratio of 10.98 and P/S ratio of 2.30. The trailing 12-month dividend yield of Lundin Mining Corp. stocks is 1.42%. The forward dividend yield of Lundin Mining Corp. stocks is 1.42%. Lundin Mining Corp. had an annual average earnings growth of 32.2% over the past five years.
CK Asset Holdings Ltd. (HKSE:01113, Financial)
Third Avenue purchased 2,776,224 shares of CK Asset Holdings Ltd., which had an average first-quarter price of around 68 Hong Kong dollars. The holding represented 2.69% of the portfolio.
CK Asset Holdings Ltd. has a market cap of 243.48 billion Hong Kong dollars; its shares were traded around 65.50 Hong Kong dollars Tuesday with a P/E ratio of 9.92 and P/S ratio of 3.62. The trailing 12-month dividend yield of CK Asset Holdings Ltd. stocks is 2.38%. The forward dividend yield of CK Asset Holdings Ltd. stocks is 2.58%.
Henderson Land Development Co. Ltd. (HKSE:00012, Financial)
Third Avenue Management (Trades, Portfolio) purchased 3,464,714 shares of Henderson Land Development Co. Ltd., which had a first-quarter average price of 52 Hong Kong dollars. The holding represented 2.46% of the portfolio.
Henderson Land Development Co. Ltd. has a market cap of 204.46 billion Hong Kong dollars; its shares were traded around 51.10 Hong Kong dollars Tuesday with a P/E ratio of 7.44 and P/S ratio of 8.0. The trailing 12-month dividend yield of Henderson Land Development Co. Ltd. stocks is 2.95%. The forward dividend yield of Henderson Land Development Co. Ltd. stocks is 7.50%. Henderson Land Development Co. Ltd. had an annual average earnings growth of 0.70% over the past 10 years.
Forest City Real Estate Trust Inc. (FCE.A, Financial)
Third Avenue Management (Trades, Portfolio) purchased 701,251 shares of Forest City Real Estate Trust Inc., which had an average first-quarter price of $24. The holding represented 1.68% of the portfolio.
Forest City Realty Trust Inc. has a market cap of $5.37 billion; its shares were traded around $20.12 Tuesday with a P/E ratio of 25.48 and P/S ratio of 5.82. The trailing 12-month dividend yield of Forest City Realty Trust Inc. stocks is 2.73%. The forward dividend yield of Forest City Realty Trust Inc. stocks is 3.64%.
Bayerische Motoren Werke AG (XTER:BMW, Financial)
Third Avenue purchased 100,978 shares of Bayerische Motoren Werke, which had a first-quarter average price of 88 euros. The holding represents 1.18% of the portfolio.
Bayerische Motoren Werke AG has a market cap of 57.3 billion euros; its shares were traded around 88.15 euros Tuesday with a P/E ratio of 6.72 and P/S ratio of 0.59. The trailing 12-month dividend yield of Bayerische Motoren Werke AG stocks is 3.97%. The forward dividend yield of Bayerische Motoren Werke AG stocks is 4.54%. Bayerische Motoren Werke AG had an annual average earnings growth of 4.10% over the past 10 years.
Capstone Mining Corp. (TSX:CS)
Third Avenue purchased 5,032,295 shares of Capstone Mining Corp., which had a first-quarter share price of 1 Canadian dollar. The holding represented 0.58% of the portfolio.
Capstone Mining Corp. has a market cap of 478.501 million Canadian dollars; its shares were traded around 1.20 Canadian dollars Tuesday with a P/E ratio of 7.50 and P/S ratio of 0.67.
Lennar Corp. (LEN.B)
Third Avenue purchased 11,790 shares of Lennar Corp., which had a first-quarter average share price of $51. The holding represented 0.06% of the portfolio.
Lennar Corp. has a market cap of $18.28 billion; its shares were traded around $46.21 Tuesday with a P/E ratio of 17.02 and P/S ratio of 1.08. The trailing 12-month dividend yield of Lennar Corp. stocks is 0.35%. The forward dividend yield of Lennar Corp. stocks is 0.35%. Lennar Corp had an annual average earnings growth of 26.40% over the past five years.
See Third Avenue Management (Trades, Portfolio) Value Fund's portfolio here.
