March 19, 2018
Small-Cap Value

Third Avenue Merges International Value Fund (TAVIX) into Value Fund (TAVFX)

Consolidation further strengthens flagship go-anywhere, deep value investment strategy and team

International Value Fund delivers strong returns ahead of consolidation

NEW YORK—March 19, 2018 —Third Avenue Management LLC (“Third Avenue”), a registered investment adviser based in New York, today announced that it has completed the previously announced merger of the Third Avenue International Value Fund (TAVIX/TVIVX) into the Third Avenue Value Fund (TAVFX/TVFVX), after successfully obtaining Board and shareholder approvals.  The Value Fund is led by Co-Portfolio Managers Matthew Fine, CFA and Michael Fineman, CFA, CFP®.  Mr. Fine previously served as Lead Portfolio Manager of the International Value Fund.

The successful completion of the merger represents another step by Third Avenue to streamline its lineup of funds and strengthen its focus on deep-value investing. To the benefit of all shareholders, the merger further enhances the combined Fund’s investment team and scale, while reducing the total expense ratio and contributing momentum from the International Fund’s strong performance.  For the three years ending March 16, 2018, during which it was managed by Mr. Fine, TAVIX returned 10.5% annualized, outpacing its benchmark the MSCI AC World ex-US Index, which returned 8.0% over the same period.*

Mr. Fine said, “We are excited to complete the merger of our Value and International Value Funds and gratified by shareholders’ support.  We’re confident that the combined team, working within the reinvigorated deep-value investment culture of our firm, can deliver superior long-term returns for our shareholders from both funds.”

Third Avenue’s Value Fund was launched in 1990 under the leadership of Martin J. Whitman. The high conviction strategy seeks to invest in undervalued securities across industries, regions and market capitalizations. Using fundamental analysis, the portfolio team seeks to identify stocks trading below their intrinsic value that compound asset values at double digit rates.

Third Avenue is now comprised of three equity funds:  the Lipper award winning[i] Third Avenue Real Estate Value Fund (TAREX/TVRVX); the Third Avenue Small-Cap Value Fund (TASCX/TVSVX); as well as the flagship Third Avenue Value Fund (TAVFX/TVFVX).

About Third Avenue Management

Third Avenue Management LLC is a New York-based investment advisory firm founded in 1986 by legendary investor Martin J. Whitman. Today, the Firm is majority owned by Affiliated Managers Group, Inc. and has more than $3.9 billion in assets under management. Third Avenue adheres to a disciplined bottom-up value investment strategy in order to identify investment opportunities in undervalued securities of companies with high quality assets, understandable businesses and strong management teams that have the potential to create value over the long term.

Read the PDF
read full article
watch video here