Third Avenue Management

Third Avenue Management

Last Update: 01-09-2017
Related: Martin Whitman

Number of Stocks: 111
Number of New Stocks: 2

Total Value: $2,182 Mil
Q/Q Turnover: 1%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Third Avenue Management' s Profile & Performance

Profile

Founded by legendary value investor Martin Whitman, Third Avenue Management manages mutual funds, separate accounts and hedge funds. The mutual funds include, Third Avenue Value Fund, managed by Martin Whitman, Third Avenue Small-Cap Value Fund, managed by Curtis Jensen, Third Avenue Real Estate Value Fund, managed by Michael Winer, and Third Avenue International Value Fund, managed by Amit Wadhwaney. All of these funds have achieved outstanding performances compared with peers.


We also have Martin Whitman in our List of Gurus. There are overlaps between the portfolio of Third Avenue Management and Martin Whitman's portfolio (Third Avenue Value Fund)

Web Page:http://thirdavenuefunds.com/taf/index.html

Investing Philosophy

Third Avenue Management, led by its founder and chairman, Martin Whitman, are balance sheet value investors. They think that the current balance sheet, rather than its projected future revenues and earnings, is the best measure of a company's value. They seek to invest in safe companies that are cheaply priced.

Total Holding History

Performance of Third Avenue Value Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2015-8.371.19-9.6
20144.8813.69-8.8
201318.8432.39-13.5
3-Year Cumulative14.2 (4.5%/year)52.3 (15.1%/year)-38.1 (-10.6%/year)
201227.481611.5
2011-20.862.11-23.0
5-Year Cumulative15.2 (2.9%/year)80.4 (12.5%/year)-65.2 (-9.6%/year)
201013.8715.06-1.2
200944.5126.4618.0
2008-45.61-37-8.6
20075.765.490.3
200614.6915.79-1.1
10-Year Cumulative25.1 (2.3%/year)102 (7.3%/year)-76.9 (-5%/year)
200516.494.9111.6
200426.6210.8815.7
200310.4628.68-18.2
20027.13-22.129.2
200110.82-11.8922.7
15-Year Cumulative142 (6.1%/year)107.5 (5%/year)34.5 (1.1%/year)
20000.91-9.110.0
199910.0621.04-11.0
199816.7228.58-11.9
1997-5.0333.36-38.4
199611.0222.96-11.9
20-Year Cumulative230.7 (6.2%/year)381.4 (8.2%/year)-150.7 (-2%/year)
19952.3637.58-35.2
1994-3.221.32-4.5
19931.3610.08-8.7
199210.887.623.3
1991-0.2630.47-30.7
25-Year Cumulative267.2 (5.3%/year)937.3 (9.8%/year)-670.1 (-4.5%/year)

Top Ranked Articles

Third Avenue Comments on Interface Inc. Guru stock highlight
Interface, Inc. (NASDAQ:TILE) Interface has been on our radar for some time and during the quarter its stock price reached a level we viewed as an attractive entry point, having declined more than 40% within the past few quarters due to investor concern around the company's level of growth. While we agree that growth in the short-term is likely to be muted, we believe the company's core product - modular carpet - is poised for long-term secular growth.

Interface is the world's leading manufacturer of carpet tile. The strength of its brand and its reputation for service, quality, design and performance provide a competitive advantage. Interface's global manufacturing capabilities across four continents also provide an advantage in serving multinational corporate customers quickly and cost-effectively.

Central to our thesis on Interface is the fact that carpet tile has reached the point where it is cost-competitive with traditional 'broadloom' carpet but offers numerous advantages, including Read more...
Third Avenue Comments on NetScout Systems Inc. Guru stock highlight
NetScout Systems Inc. (NASDAQ:NTCT) Near-term concerns over a slowdown in carrier spending provided us an opportunity to acquire shares of NetScout common at a substantial discount to our estimate of NAV.

NetScout is a well-financed provider of 24x7 network monitoring solutions to carriers and enterprises. Its offerings provide high-quality performance analytics that help its customers resolve technology issues that could negatively impact service quality and/or result in outages/downtime and compromised security. Last year, the company acquired certain communications assets from Danaher which doubled its addressable market by broadening its product offerings, providing an entrée into the cyber security space and increased its distribution. Cost synergies estimated at around $45-55 million are expected from the elimination of redundancies and economies of scale, with additional synergies generated over time as the company moves toward common infrastructure platforms, distribution and support programs.

In Read more...
Third Avenue Management Comments on Prosegur Guru stock highlight
Prosegur (XMCE:PSG), a Spanish and Latin American provider of cash-in-transit and security services, announced in late September that it intends to conduct an initial public offering of its cash-in-transit subsidiary. The purpose of the exercise is several-fold. First, the company is of the view that placing an independent value on its cash-in-transit business is likely to result in an increase in the value of Prosegur as a whole. Second, Prosegur is in the early days of building a formidable alarms business in Latin America. The characteristics of the business are such that it requires meaningful up-front capital investment to acquire and equip new customers but tends to require little ongoing capital investment as revenue is generated for years thereafter, conceptually similar to many cable or telecom businesses. The idea is to make the up-front capital investment and then enjoy long periods of prodigious cash flow. A portion of the proceeds from the cash-in-transit initial public offering will be used to accelerate the development of the alarms business. Read more...
Third Avenue Small-Cap Value Fund Comments on Seaboard Corp Guru stock highlight
We actually initiated our investment in Seaboard Corporation (SEB) ("Seaboard") with a small weighting at the end of 2Q16 and continued to build our position in 3Q16. Seaboard is a diverse global agribusiness and transportation company. In the U.S., Seaboard is primarily engaged in pork production and processing as well as ocean cargo shipping. Overseas, Seaboard engages in commodity merchandising, grain processing, sugar production and electric power generation. Seaboard also has a 52% interest in the turkey company Butterball, a brand very well-known to many consumers in the U.S. Read more...
Third Avenue Management Comments on Korn Ferry International Guru stock highlight
Many of you may recognize the strong brand name of Korn Ferry International (NYSE:KFY), another purchase in the quarter, but you may not have noticed the business transformation the company has undertaken anchored by its December 2015 purchase of the Hay Group. Korn Ferry is best known for its executive recruiting. It is a top brand name in this highly fragmented industry, with a strong offering on the more resilient and niche C-suite space. Most of its job searches have annual compensation of $300,000 or more. Read more...
» More Third Avenue Management Articles

Commentaries and Stories

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Third Avenue Value Fund Buys 2 Stocks and Adds to 2 Positions in Q4 Fund reveals its picks earlier than most Third Avenue Management,Martin Whitman - Third Avenue Value Fund Buys 2 Stocks And Adds To 2 Positions In Q4
Third Avenue Management (Trades, Portfolio), a private investment firm founded by legendary value manager Martin Whitman (Trades, Portfolio), ends its quarter on Oct. 31 and revealed the fourth-quarter trades of its Third Avenue Value Fund in its recent letter. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Focused Credit Fund Letter a Year After Starting Wind Down Fund hits road bump returning money to shareholders Third Avenue Management,Martin Whitman - Third Avenue Focused Credit Fund Letter A Year After Starting Wind Down
Dear Fellow Shareholders, More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Korn Ferry International Guru stock highlight
Many of you may recognize the strong brand name of Korn Ferry International (NYSE:KFY), another purchase in the quarter, but you may not have noticed the business transformation the company has undertaken anchored by its December 2015 purchase of the Hay Group. Korn Ferry is best known for its executive recruiting. It is a top brand name in this highly fragmented industry, with a strong offering on the more resilient and niche C-suite space. Most of its job searches have annual compensation of $300,000 or more. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Comfort Systems USA Guru stock highlight
Beyond a strong balance sheet, other key characteristics that we look for in our companies include a strong business model and a large addressable market to support long-term revenue and earnings compounding. Our addition of Comfort Systems USA (NYSE:FIX) is a good example of these factors. Comfort Systems offers design, installation, retrofit and service for HVAC and electrical systems for facilities such as office buildings, plants, retail centers, hospitals and universities. Comfort Systems is unique in that it focuses mostly in smaller cities where, relative to large urban settings, there is less competition for both projects and for skilled labor. The company works on approximately 4,000 jobs annually and most of the contracts are under $1 million. More than half of these are for renovations and repairs and are recurring in nature, rather than from new constructions. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Cubic Corp Guru stock highlight
Cubic Corp (NYSE:CUB), another top holding for the Fund, is a small company with about $1.1 billion in market cap that has three main businesses: military communication equipment, military training (for example, they run the Top Gun flight school), and in our view the most interesting part is its transportation segment. The company's transportation segment is the world leader in design and management of public bus and subway systems, handling the fare systems for major cities such as London, New York City, Chicago, and Vancouver. Cubic is also leading technology efforts, such as smart phone payments and dynamic re-routing, to help keep us all on time for work. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Multi-Color Corporation Guru stock highlight
Multi-Color Corporation (NASDAQ:LABL) 1 is a good example of a name that is not in our benchmark and is a high conviction top ten holding for the Fund. The company produces numerous types of labels for a variety of consumer products, such as detergent, wine bottles, motor oil, etc. Multi-Color meets the tenets of our investment philosophy of creditworthiness, book value compounding and a discounted valuation. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Small-Cap Value Fund 3rd Quarter Commentary From Chip Rewey Martin Whitman,Third Avenue Management - Third Avenue Small-Cap Value Fund 3rd Quarter Commentary
Dear Fellow Shareholders: More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Cheung Kong Property Guru stock highlight
The Fund holds shares of Cheung Kong Property (HKSE:01113), a large Hong Kong-based property developer and owner that was made independent of CK Hutchison Holdings in mid-2015. That 2015 separating transaction was essentially a spin-off, though with a number of more nuanced benefits, and was successful in creating shareholder value. We have continued to hold shares of Cheung Kong Property on the premise that it is clearly undervalued and it is controlled by exceptionally shrewd and dispassionate business operators. At the time of this writing, shares of Cheung Kong Property trade at an approximate 26% discount to stated book value. We are of the view that, due to certain accounting conventions and the evidence of significant conservatism in asset carrying values, book value materially understates a more realistic net asset value appraisal. In October, Cheung Kong Property and a JV partner announced the sale of a very large asset in Shanghai for approximately HKD 23 billion (50% attributable to Cheung Kong Property), a disposal value slightly higher than two More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Prosegur Guru stock highlight
Prosegur (XMCE:PSG), a Spanish and Latin American provider of cash-in-transit and security services, announced in late September that it intends to conduct an initial public offering of its cash-in-transit subsidiary. The purpose of the exercise is several-fold. First, the company is of the view that placing an independent value on its cash-in-transit business is likely to result in an increase in the value of Prosegur as a whole. Second, Prosegur is in the early days of building a formidable alarms business in Latin America. The characteristics of the business are such that it requires meaningful up-front capital investment to acquire and equip new customers but tends to require little ongoing capital investment as revenue is generated for years thereafter, conceptually similar to many cable or telecom businesses. The idea is to make the up-front capital investment and then enjoy long periods of prodigious cash flow. A portion of the proceeds from the cash-in-transit initial public offering will be used to accelerate the development of the alarms business. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Management Comments on Petroleum Geo-Services ASA Guru stock highlight
We have in previous quarters spoken of our equity and credit investments in PGS (PGS), which is a leader in the offshore seismic survey industry. The industry and PGS with it have faced an oil and gas exploration recession of extraordinary severity. The seismic industry, as well as the broader oil services industry, has seen many bankruptcies of late. Few offshore seismic companies have been able to remain solvent. PGS is among those few. In November the company announced a package of refinancing actions that will further entrench it in the camp of survivors. PGS's primary financing consideration was its ability to deal with a USD 450 million bond maturing in June 2018, the very same bonds owned by the Fund. With regard to PGS equity, lately there has been a growing consensus that the company is grossly undervalued, particularly if one expects an industry recovery. Yet those considerations have been overwhelmed by the above-mentioned financing considerations. Availing itself of its acute undervaluation and a very supportive, long-term oriented shareholder base including More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Third Avenue Management Comments on Tenon Ltd. Guru stock highlight
The Fund's largest holding is in the shares of Tenon Ltd, a New Zealand-listed and headquartered company with building products distribution operations throughout the United States and wood products manufacturing operations primarily in New Zealand.Roughly one year ago, the company announced a strategic review that had a high probability of resulting in a liquidation of the company. During the most recent quarter, Tenon (NZSE:TEN) announced that the strategic review has resulted in the sale of its U.S. operations to a U.S. private equity firm representing the first major step towards that liquidation. In connection with the sale announcement, the company also published the results of an independent appraisal of Tenon's business value, which identifies a valuation approximately 23% higher than market value at the time of this writing. The announced sale crystallizes the majority of Tenon's total identified business value for cash and within the expected valuation range. Meanwhile the effort to complete the strategic More...

  • Currently 4.50/5

Rating: 4.5/5 (2 votes)

Third Avenue International Value Fund 3rd Quarter Letter Review of international holdings at Marty Whitman's fund Third Avenue Management - Third Avenue International Value Fund 3rd Quarter Letter
Dear Fellow Shareholders: More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Third Avenue Comments on Adient Guru stock highlight
We received shares of Adient (NYSE:ADNT) upon its spin-off from JCI at the end of October. Adient is the market leading provider of automotive seating in North America, Europe and China. It has longstanding relationships with all of the major global Original Equipment Manufacturers as well as growing regionals such as Brilliance, Great Wall Motors, SAIC Motor, Tata Motor, and newer manufacturers such as Tesla. It also has an equity JV with Yanfeng Automotive in China for interior trim systems such as door panels, instrument panels and consoles. The company is geographically diversified, providing some balance with regard to regional economic cycles. Seating, while it sounds fairly mundane, is actually benefiting from enhanced features to increase passenger comfort such as heating/cooling, massage, lumbar support and advanced seat adjustability as well as an increasing shift globally to SUVs, which have higher seating content. For luxury vehicles, the second row bench seat of yesteryear is a thing of the past, having been largely replaced by captain's chairs with all of the passenger comfort amenities. This trend is also moving toward mass market vehicles, More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Third Avenue Comments on Lennar Guru stock highlight
At our Value Conference, our colleagues on the Real Estate team revisited one of Marty Whitman's quotes from October 1996: "Given Third Avenue's investment criteria, it is more accurate to view the situation as the industry selecting the Fund, rather than Third Avenue choosing the industries in which to invest!' We think this quote superbly describes the opportunity the Value Fund saw in establishing a position in Lennar Corporation common in the quarter, as the shares somewhat inexplicably sold off from nearly $50 at their recent peak and allowed us to establish a position at just over $41 per share.We have followed Lennar (NYSE:LEN) for years as the Real Estate team reviewed the position at our weekly research meetings, and think the investment case has only improved on a fundamental level despite the widening valuation discount in the shares. Lennar meets every tenant of our investment philosophy.The balance sheet is strong and improving. Net debt to total capital has fallen 5.3% More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Third Avenue Comments on Harman International Industries Guru stock highlight
Post quarter-end, Harman International Industries (NYSE:HAR) announced that it had agreed to be acquired by Samsung Electronics for approximately $8 billion ($112 per share) in cash. The deal is expected to close in mid-2017. We are pleased to see that Samsung saw the attraction in Harman, as we did, and while it wasn't central to our initial investment thesis, we aren't surprised that Harman was a take-over target. Harman is a leading supplier of infotainment and connected car solutions and its technology will give Samsung quick entrée into a new and growing market. The purchase price at 10x EBITDA is fair, though as a standalone company, we could still see Harman with further potential upside over time. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue Comments on General Motors Guru stock highlight
We took advantage of market volatility during the quarter to exit our position in General Motors (NYSE:GM) as it reached our fair value estimate and we see early signs of potential auto cycle peak levels slowing. We used the proceeds to invest in higher growth opportunities. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Third Avenue Comments on Johnson Controls Guru stock highlight
An example of a company fitting that profile is Johnson Controls (XI). JCI had been taking steps over the past few years to divest its lower margin automotive businesses and focus on its higher margin and growth building systems and power solutions businesses. The company had already announced the spin-off of the automotive seating/interiors business and had announced a merger with Tyco to broaden its building systems offerings by adding security and fire solutions, bringing it into the final innings of transforming itself into a multi-industrial. Despite these steps, the market continued to value JCI as an automotive supplier and was not giving it credit for its value-creating activities. At Third Avenue, we're focused on bottom-up company fundamentals and are agnostic about which sector our holdings are in. But if the indices misclassify companies and present us an opportunity to invest in a high quality company at a discounted price, we get excited. And interestingly, the situation with JCI was somewhat reminiscent of Visteon Corporation, which we own in the Third More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Third Avenue Comments on Comerica Guru stock highlight
A good example of this is Comerica (NYSE:CMA), a regional bank. Comerica has endured negative macro headlines-- from low oil prices potentially leading to loan losses, to headlines on the potential negative impact of consistently low interest rates on its net interest margins, and headlines relating to the impact of weak GDP on weak loan demand. Yet, because of its strong financial position, Comerica has survived these over-hyped fears without altering its corporate strategies. It has been able to focus on cost control measures while targeting geographic growth and significant capital return through dividends and buybacks, enabling it to grow its tangible book value by 9.3% over the past two years.We actually view the fears of bad headlines as a source of potential upside, icing on the cake if you will, through earnings growth potential once interest rates rise, and loss reserves are likely reversed and loan growth accelerates with a stronger economy. Comerica was the Fund's second largest position at 6.0%1 of assets More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Third Avenue Value Fund 4th Quarter Portfolio Manager Commentary Chip Rewey, manager at Marty Whitman's firm, authors quarterly review of holdings and investing environment Martin Whitman,Third Avenue Management - Third Avenue Value Fund 4th Quarter Portfolio Manager Commentary
Dear Fellow Shareholders: More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Third Avenue International Value Fund Portfolio Manager 3rd Quarter Commentary Review of quarter and holdings Third Avenue Management,Martin Whitman - Third Avenue International Value Fund Portfolio Manager 3rd Quarter Commentary
Dear Fellow Shareholders: More...

Add Notes, Comments

If you want to ask a question or report a bug, please create a support ticket.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK