Although Martin Whitman (Trades, Portfolio) has a reputation for being a “buy and hold” investor, many of Third Avenue Value Fund's largest transactions in the fourth quarter, which ended Oct. 31, 2015, were reductions.
The fund’s most significant fourth-quarter transaction was the reduction, by more than 48%, of the stake in POSCO (PKX, Financial), a Pohang, South Korea-based steelmaking company. Third Avenue sold 572,600 shares for an average price of $39.14 per share. The deal had a -1.41% impact on the portfolio.
The current stake is 0.17% of the company’s outstanding shares and 1.55% of the fund's total assets.
POSCO has a market cap of $12.39 billion and an enterprise value of $31.36 billion. It has a forward P/E of 9.0, a P/B of 0.4 and a P/S of 0.2. GuruFocus has given POSCO a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10.
Third Avenue Management (Trades, Portfolio), POSCO’s leading shareholder among the gurus, and Jeremy Grantham (Trades, Portfolio) reduced their stakes in POSCO in the third quarter.
POSCO sold for $35.58 per share Tuesday.
The fund reduced the stake in Vodafone Group PLC (LSE:VOD, Financial), a London-based telecommunications company, by more than 38%. Third Avenue sold 6,230,221 shares for an average price of £2.21 (about $3.26 in U.S. currency) per share. The transaction had a -1.39% impact on the portfolio.
The guru’s current stake in Vodafone is 0.04% of the company’s outstanding shares and 2.13% of the total assets.
Vodafone, which has been in Third Avenue's portfolio since 2013, has a market cap of $57.27 billion and an enterprise value of $89.64 billion. It has a P/E of 9.8, a forward P/E of 39.7, a P/B of 0.9 and a P/S of 1.4. GuruFocus has given Vodafone a Financial Strength rating of 7/10 and a Profitability and Growth rating of 5/10.
Signature Select Canadian Fund (Trades, Portfolio) and T Rowe Price Equity Income Fund (Trades, Portfolio) reduced their stakes in Vodafone in the third quarter.
Vodafone sold for £2.16 (approximately $3.18 in American dollars) per share Tuesday.
Third Avenue sold more than half of the stake in NVIDIA Corp. (NVDA, Financial), a Santa Clara, California-based technology company. The guru sold 1,045,900 shares for an average price of $24.12 per share. The deal had a -1.24% impact on the portfolio.
The sale left Third Avenue’s stake in NVIDIA at 0.19% of the company’s outstanding shares and 1.87% of the fund's total assets.
NVIDIA, which has been in the portfolio since 2013, has a market cap of $17.88 billion and an enterprise value of $14.57 billion. It has a P/E of 30.8, a forward P/E of 20.0, a P/B of 3.9 and a P/S of 3.7. GuruFocus has given NVIDIA a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Third Avenue Management (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) reduced their stakes in NVIDIA in the third quarter.
NVIDIA sold for $33.03 per share Tuesday.
Third Avenue reduced the stake in Comerica Inc. (CMA, Financial), a Dallas-based banking and financial services company, by nearly 12%. The fund sold 231,000 shares for an average price of $43.31 per share. The transaction had a -0.65% impact on the portfolio.
Third Avenue’s stake in Comerica is 0.99% of its outstanding shares and 4.86% of the total assets.
Comerica has been in the fund’s portfolio since 2012 and has a market cap of $7.24 billion and an enterprise value of $3.14 billion. It has a P/E of 13.6, a forward P/E of 11.1, a P/B of 1.0 and a P/S of 2.8. GuruFocus has given Comerica a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.
Third Avenue Management (Trades, Portfolio), Richard Pzena (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), David Dreman (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) reduced their stakes in Comerica in the third quarter.
Comerica sold for $41 per share Tuesday.
The fund reduced its stake in Devon Energy Corp. (DVN, Financial), an Oklahoma City-based oil and gas company, by 23%, selling 217,100 shares for an average price of $42.44 per share. The deal had a -0.64% impact on the portfolio.
The guru’s stake in Devon Energy is 0.18% of the company’s outstanding shares and 1.94% of the fund's total assets.
Devon Energy, which has had a position in the portfolio since 2012, has a market cap of $13.5 billion and an enterprise value of $27.99 billion. It has a forward P/E of 12.1, a P/B of 1.2 and a P/S of 0.8. GuruFocus has given Devon Energy a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Diamond Hill Capital (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), Louis More Bacon, Tweedy Browne (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Jim Simons (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), David Dreman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio) reduced their stakes in Devon Energy in the third quarter.
Devon Energy sold for $32.85 per share Tuesday.
Third Avenue reduced the stake in Loews Corp. (L, Financial), a New York-based conglomerate involved in insurance, hotels, oil drilling and pipelines, by more than 24%. The fund sold 254,600 shares for an average price of $36.68 per share. The transaction had a -0.57% impact on the portfolio.
The fund’s stake in Loews, which has been in the portfolio since 2014, is 0.23% of the company’s outstanding shares and 1.85% of the total assets.
Loews has a market cap of $13.43 billion and an enterprise value of $24.2 billion. It has a P/E of 21.0, a forward P/E of 12.0, a P/B of 0.7 and a P/S of 1.0. GuruFocus has given Loews a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.
Mason Hawkins (Trades, Portfolio), Chris Davis (Trades, Portfolio), Third Avenue Management (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Jim Simons (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Dodge & Cox and Murray Stahl (Trades, Portfolio) reduced their stakes in Loews in the third quarter.
Loews sold for $37.89 per share Tuesday.
Baxalta Inc. (BXLT, Financial), a biopharmaceutical company that was founded in July 2015 after the biopharmaceutical division was spun off from parent company Baxter International, was Third Avenue’s only new buy of the quarter.
The fund acquired a 464,033-share stake for an average price of $34.91 per share. The transaction had a 1.02% impact on the portfolio.
Third Avenue’s stake is 0.07% of Baxalta’s outstanding shares and 1.02% of the fund's total assets.
Baxalta has a market cap of $27.84 billion and an enterprise value of $31.79 billion. It has a P/E of 47.7, a forward P/E of 17.8, a P/B of 7.0 and a P/S of 4.6. GuruFocus has given Baxalta a Financial Strength rating of 5/10 and a Profitability and Growth rating of 2/10.
Tweedy Browne (Trades, Portfolio) Global Value, Signature Select Canadian Fund (Trades, Portfolio) and Jim Simons (Trades, Portfolio) bought stakes in Baxalta in the third quarter.
Baxalta sold for $41.51 per share Tuesday.
The fund increased the existing stake in Brookdale Senior Living Inc. (BKD, Financial), a Brentwood, Tennessee-based owner and operator of senior living communities in the U.S., by more than 43%. Third Avenue bought 501,200 shares for an average price of $25.88 per share. The deal had a 0.67% impact on the portfolio.
The guru’s stake is 0.9% of Brookdale’s outstanding shares and 2.21% of the total assets.
Brookdale, which has been in the portfolio since 2014, has a market cap of $3.59 billion and an enterprise value of $9.95 billion. It has a forward P/E of 7.3, a P/B of 1.4 and a P/S of 0.7. GuruFocus has given Brookdale a Financial Strength rating of 7/10 and a Profitability and Growth rating of 5/10.
Third Avenue Management (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Jana Partners (Trades, Portfolio) and Jim Simons (Trades, Portfolio) added to their stakes in Brookdale in the third quarter.
Brookdale sold for $19.23 per share Tuesday.
Third Avenue raised its stake in PNC Financial Services Group Inc. (PNC, Financial), a Pittsburgh-based financial services company, by more than 24%. The fund purchased 116,600 shares for an average price of $91.27 per share. The transaction had a 0.67% impact on the portfolio.
Third Avenue’s stake in PNC is 0.12% of the company’s outstanding shares and 3.42% of the total assets.
PNC, which has been in Third Avenue’s portfolio since the second quarter of 2015, has a market cap of $47.27 billion and an enterprise value of $65.12 billion. It has a P/E of 12.6, a forward P/E of 11.2, a P/B of 1.1 and a P/S of 3.2. GuruFocus has given PNC a Financial Strength rating of 4/10 and a Profitability and Growth rating of 5/10.
Third Avenue Management (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), David Dreman (Trades, Portfolio), John Buckingham (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Manning & Napier Advisors Inc. and Ken Fisher (Trades, Portfolio) added to their stakes in PNC in the third quarter.
PNC sold for $93.08 per share Tuesday.
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