Exploring the Fund's Latest Investment Adjustments
Third Avenue Value Fund (Trades, Portfolio) recently submitted its N-PORT filing for the fourth quarter of 2024, revealing strategic investment decisions made during this period. Founded by the legendary value investor Martin J. Whitman in 1990, the Third Avenue Value Fund (Trades, Portfolio) is renowned for its flexible investment strategy. The fund adopts a global, all-cap equities approach, allowing for opportunistic investments in credit securities across the capital structure. It focuses on financial strength, the ability to compound NAV, and investments priced at a significant discount to the fund's conservative NAV estimate. The fund aims to build a differentiated portfolio by investing in contrarian and special-situation opportunities across various sectors, geographies, and security types, seeking long-term capital appreciation through companies with strong financial positions and valuations supported by tangible assets.
Key Position Increases
Third Avenue Value Fund (Trades, Portfolio) made significant increases in its holdings, with a total of 11 stocks seeing an uptick. Among these, the most notable was Subaru Corp (TSE:7270, Financial), where the fund added 599,300 shares, bringing the total to 1,405,100 shares. This adjustment represents a substantial 74.37% increase in share count, impacting the current portfolio by 1.6%, with a total value of ¥25,094,010. The second largest increase was in Horiba Ltd (TSE:6856, Financial), with an additional 127,200 shares, bringing the total to 396,000. This adjustment signifies a 47.32% increase in share count, with a total value of ¥24,343,710.
Key Position Reductions
Conversely, the fund reduced its position in two stocks. The most significant changes include a reduction in Old Republic International Corp (ORI, Financial) by 278,228 shares, resulting in a 38.83% decrease in shares and a 1.33% impact on the portfolio. The stock traded at an average price of $35.09 during the quarter, returning 1.67% over the past three months and 26.17% year-to-date. Additionally, the fund reduced its stake in Lazard Inc (LAZ, Financial) by 171,810 shares, marking a 35.7% reduction in shares and a 1.16% impact on the portfolio. The stock traded at an average price of $49 during the quarter, with returns of 1.13% over the past three months and 52.86% year-to-date.
Portfolio Overview
As of the fourth quarter of 2024, Third Avenue Value Fund (Trades, Portfolio)'s portfolio comprised 31 stocks. The top holdings included 7.2% in Capstone Copper Corp (TSX:CS, Financial), 6.57% in Warrior Met Coal Inc (HCC, Financial), 5.59% in Deutsche Bank AG (XTER:DBK, Financial), 4.52% in easyJet PLC (LSE:EZJ, Financial), and 4.51% in Buzzi SpA (MIL:BZU, Financial). The holdings are primarily concentrated in eight of the eleven industries: Basic Materials, Financial Services, Energy, Consumer Cyclical, Industrials, Technology, Consumer Defensive, and Communication Services.
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