Third Avenue Management

Third Avenue Management

Last Update: 02-13-2017
Related: Martin Whitman

Number of Stocks: 114
Number of New Stocks: 8

Total Value: $2,207 Mil
Q/Q Turnover: 9%

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 (%)
201613.3911.961.4
2015-8.371.38-9.7
20144.8813.69-8.8
3-Year Cumulative9 (2.9%/year)29 (8.9%/year)-20 (-6%/year)
201318.8432.39-13.5
201227.481611.5
5-Year Cumulative65.1 (10.5%/year)98.2 (14.7%/year)-33.1 (-4.2%/year)
2011-20.862.11-23.0
201013.8715.06-1.2
200944.5126.4618.0
2008-45.61-37-8.6
20075.765.490.3
10-Year Cumulative23.7 (2.1%/year)95.7 (6.9%/year)-72 (-4.8%/year)
200614.6915.79-1.1
200516.494.9111.6
200426.6210.8815.7
200310.4628.68-18.2
20027.13-22.129.2
15-Year Cumulative147.6 (6.2%/year)164.2 (6.7%/year)-16.6 (-0.5%/year)
200110.82-11.8922.7
20000.91-9.110.0
199910.0621.04-11.0
199816.7228.58-11.9
1997-5.0333.36-38.4
20-Year Cumulative237.8 (6.3%/year)339.2 (7.7%/year)-101.4 (-1.4%/year)
199611.0222.96-11.9
19952.3637.58-35.2
1994-3.221.32-4.5
19931.3610.08-8.7
199210.887.623.3
25-Year Cumulative317.5 (5.9%/year)791.8 (9.1%/year)-474.3 (-3.2%/year)
1991-0.2630.47-30.7

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 Small-Cap Value Fund Comments on G-III Apparel Group Guru stock highlight
G-I I I (NASDAQ:GIII) Apparel Group ("G-I I I") is a designer, manufacturer, and marketer of men's and women's apparel. While not a household name, the numerous brands G-111 works with very much are, including Calvin Klein and Tommy Hilfiger. G-I I I was founded in the 1950s and today is one of the larger companies in the apparel industry with more than $2 billion of annual sales and a remarkable track record. Read more...
Third Avenue Management Comments on Cerner Guru stock highlight
Cerner (NASDAQ:CERN) is a leading health care information technology company. We have long admired Cerner as it is a well-financed compounder, having compounded book value at an average rate of 16% over the past 10 years. Delays in customer adoption of healthcare Information Technology (IT) systems as regulatory mandates have lengthened, exacerbated by concerns about potential changes to the ACA and the impact on healthcare IT spend, have negatively pressured Cerner's common stock price down from over $67 to our initial purchase cost of approximately $48, giving us an opportunity to acquire shares of Cerner common stock at an attractive valuation. Read more...
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. Read more...
Third Avenue Management Comments on Weyerhaeuser Guru stock highlight
An example of one of our portfolio holdings which has, and continues to have, opportunities for self-help is Weyerhaeuser (NYSE:WY). Weyerhaeuser is one of the Fund’s largest holdings and, as stated above, was our most significant contributor to performance, with a total return of 26.8%, during the quarter. We added to the position during the quarter on weakness. We believe the company remains attractively priced given its high-quality assets and additional opportunities for longer-term growth.

Weyerhaeuser is a well-capitalized U.S.-based forest products company with timberland holdings, wood products used in homebuilding, and cellulose fibers used in absorbency products such as paper towels. The company had been negatively impacted by macro-related headwinds from a decline in demand from China and continued weak U.S. housing markets. CEO Doyle Simons, hired in 2013, responded with numerous measures. The company streamlined its operations by selling off its homebuilding business, bolstered its timberlands portfolio Read more...
» More Third Avenue Management Articles

Commentaries and Stories

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Third Avenue Management's Top 5 Stock Buys of Q4 Martin Whitman's value-focused firm updates portfolio Third Avenue Management - Third Avenue Management's Top 5 Stock Buys Of Q4
The firm founded by legendary investor Martin Whitman (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), selected eight new stocks and its flagship value fund beat the market in the fourth quarter. More...

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These 5 Funds Let Your Money Travel the World Global funds present the best opportunities for investors looking to invest internationally Third Avenue Management - These 5 Funds Let Your Money Travel The World
It’s a big world out there. We hear a lot of talk about the “global economy,” but the truth is much more complicated. It’s more accurate to say that the world is built on a collection of national and regional economies, each with its own unique attributes and near-term outlooks. More...

INTERNATIANAL INVESTING, GLOBAL FUNDS, INTERNATIONAL VALUE FUNDS


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Third Avenue Management Comments on Lennar Guru stock highlight
We initiated Lennar (NYSE:LEN) in October, and thus wrote up our comments in our prior shareholder letter, but due to the shift in our letter cadence, we are republishing our thoughts from our initial purchase. More...

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Third Avenue Management Comments on Cerner Guru stock highlight
Cerner (NASDAQ:CERN) is a leading health care information technology company. We have long admired Cerner as it is a well-financed compounder, having compounded book value at an average rate of 16% over the past 10 years. Delays in customer adoption of healthcare Information Technology (IT) systems as regulatory mandates have lengthened, exacerbated by concerns about potential changes to the ACA and the impact on healthcare IT spend, have negatively pressured Cerner's common stock price down from over $67 to our initial purchase cost of approximately $48, giving us an opportunity to acquire shares of Cerner common stock at an attractive valuation. More...

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Calendar 4th Quarter Shareholder Letter From Marty Whitman's Third Avenue Value Fund Chip Rewey discusses market and holdings Martin Whitman,Third Avenue Management - Calendar 4th Quarter Shareholder Letter From Marty Whitman's Third Avenue Value Fund
Dear Fellow Shareholders: More...

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Third Avenue Management Comments on Petroleum Geo-Services Guru stock highlight
Petroleum Geo-Services ("PGS") (OSL:PGS) Throughout December and early January, PGS completed its refinancing activities as described in our previous letter. PGS conducted an equity raise primarily for the purpose of refinancing its 2018 bonds. The Fund was a holder of both PGS equity and its 2018 bonds. We were pleased to participate in improving PGS’ capital structure via the equity offering, which precipitated a meaningful price appreciation of both our equity and credit positions. PGS tendered for our 2018 bonds PGS on terms favorable to bondholders, and meanwhile the company’s equity responded very favorably to the improvement in the company’s capital structure and the elimination of its nearest debt maturity. Our investments in PGS securities have been important contributors to performance of late. More...

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Third Avenue Management Comments on Lundin Mining Guru stock highlight
Lundin Mining (“Lundin”) (TSX:LUN) In mid-November, Lundin announced that it had entered into an agreement to sell its holding in an entity called TF Holdings Ltd. TF is the entity through which Lundin and Freeport-McMoRan have for many years controlled a Central African copper mine called Tenke Fungurume. The Lundin transaction essentially is the sale of a 24% economic interest in the mine for the agreed price of CAD 1.14 billion. This transaction is expected to close during the first half of 2017 and would add considerable cash to what is already one of the mining industry’s best balance sheets. While Tenke Fungurume is an unusually high quality mine, its jurisdiction can at times be an unusually challenging place to do business. We view the transaction price as reasonable and look positively upon the prospective reduction of political risk embedded within Lundin. With the transaction proceeds Lundin would also bolster its position as one of the very few companies in a position to acquire mining assets at one of the rare times when some very decent assets may be available More...

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Third Avenue Management Comments on Lundin Mining Guru stock highlight
Lundin Mining (“Lundin”) (TSX:LUN) In mid-November, Lundin announced that it had entered into an agreement to sell its holding in an entity called TF Holdings Ltd. TF is the entity through which Lundin and Freeport-McMoRan have for many years controlled a Central African copper mine called Tenke Fungurume. The Lundin transaction essentially is the sale of a 24% economic interest in the mine for the agreed price of CAD 1.14 billion. This transaction is expected to close during the first half of 2017 and would add considerable cash to what is already one of the mining industry’s best balance sheets. While Tenke Fungurume is an unusually high quality mine, its jurisdiction can at times be an unusually challenging place to do business. We view the transaction price as reasonable and look positively upon the prospective reduction of political risk embedded within Lundin. With the transaction proceeds Lundin would also bolster its position as one of the very few companies in a position to acquire mining assets at one of the rare times when some very decent assets may be available More...

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Third Avenue Management Comments on Global Logistic Properties Guru stock highlight
Global Logistic Properties (“GLP”) (SGX:MC0) We have been satisfied owners of GLP for some time. From an execution standpoint, this logistics facility developer, owner and operator continues to do a fine job operationally. The company has judiciously grown its facilities network in China, Japan, Brazil and the U.S., both organically and through acquisition, at a pace appropriate for each respective geographic market while maintaining a conservative balance sheet. Meanwhile, the company has made great strides in growing its fund management platform, which has the benefit of improving overall returns through the incorporation of fee-paying third party capital. However, the stock had until recently languished at a low valuation presumably as a result of the broad perception that macroeconomic growth in China is slowing and that the growth of GLP’s network development will also slow in turn. Yet investors fixated on rapid growth of earnings fail to appreciate the value of the existing in-place network of facilities, a reasonable replacement cost analysis of those assets, the extreme More...

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Third Avenue Real Estate Value Fund 4th Quarter Commentary Review of markets and holdings Third Avenue Management,Martin Whitman - Third Avenue Real Estate Value Fund 4th Quarter Commentary
Dear Fellow Shareholders: More...

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Third Avenue International Value Fund 4th Quarter Letter Discussion of markets and holdings Third Avenue Management,Martin Whitman - Third Avenue International Value Fund 4th Quarter Letter
Dear Fellow Shareholders: More...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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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...

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