BUY LYFAX

An Uncommon Approach to Small-Cap Value Investing.

Third Avenue Small-Cap Value

DATE OF INCEPTION

April 1997
Institutional: TASCX | Investor: TAVSX  |  Class Z: TASZX

PORTFOLIO MANAGER

Matthew Fine, CFA
Victor Cunningham, CFA
Portfolio Manager
View Bio >

MORNINGSTAR RATING

Cheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhD
Overall Morningstar rating, as of December 31, 2023, vs. 456 funds. TASCX was rated against the following numbers of Small Value Category Funds over the following time periods: 456 funds in the last three years, 427 funds in the last five years and 333 funds in the last ten years. With respect to these Small Value funds, TASCX received a Morningstar Rating of 5 stars for the three-year period, 5 stars for the five-year period and 5 stars for the ten-year period, respectively. Ratings based on risk adjusted return. Past performance is no guarantee of future results.

Fund Documents

as of December 31, 2023
Shareholder Letter
Fact Sheet
Fact Sheet
Quarterly Shareholder Letter
Insights

Key Differentiators

Contrarian and Opportunistic

The Strategy seeks to invest in companies that are misunderstood and underestimated by the broader market. Our approach is to find value in out-of-favor industries, complex corporate structures or capital structures and special situations.

Balance Sheet Focused with a Long-Term Horizon

Our “balance sheet first” approach allows us to be patient investors resulting in low portfolio turnover. Our unconventional strategy strives to identify unique long-term opportunities where few are looking. 

Aggressive, Conservative, Deep Value Approach

Our goal is to provide above-average risk-adjusted returns over time. We strive to construct a unique, deep-value portfolio by combining disciplined stock selection with careful portfolio construction. High active share will be a by-product of our differentiated approach to finding value.

Statutory Documents

as of December 31, 2023
Annual Report
Statement of Additional Information
Semi-Annual Report
Full Prospectus
Full Prospectus
Summary Prospectus
Income and Capital Gains Distributions
Semi-Annual Report
Annual Report
Statement of Additional Information
Q123 Fund Holdings
Q322 Fund Holdings

Objective:

Our Small-Cap Value Fund seeks long-term capital appreciation by investing in well-capitalized, North American, small-cap securities that we believe are mispriced by the market. The portfolio is constructed with an aim to deliver attractive risk-adjusted returns over time.

Active Management, High Active Share*

99%

Active Share vs. Russell 2000 Value Index

25

Total Equity
Holdings

21%

Portfolio
Turnover

GICS SECTOR WEIGHTINGS

as of December 31, 2023

PERFORMANCE

as of December 31, 2023
Performance Data is best viewed in landscape on your mobile device.
QTR
1 Year
3 Year*
5 Year*
10 Year*
Inception*
Third Avenue Small-Cap Value Fund
9.38
21.88
14.62
12.40
7.66
8.73
Russell 2000 Value Index
15.26
14.65
7.94
10.00
6.76
8.36
Performance is shown for the Third Avenue Small-Cap Value Fund (Institutional Class). Past performance is no guarantee of future results; returns include reinvestment of all distributions. The chart represents past performance and current performance may be lower or higher than performance quoted above. Investment return and principal value fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost.
Institutional Share Class Inception Date: April 1, 1997.
*
Annualized

Top 10 Holdings

as of December 31, 2023
FUND
UMB Financial Corp.
7.1
%
Tidewater Inc.
5.6
%
MYR Group Inc.
5.6
%
Encore Capital Group Inc.
4.9
%
Seaboard Corp.
4.7
%
Atlanta Braves Holdings Inc.
4.6
%
Hamilton Beach Brands Holding Co.
4.6
%
FRP Holdings Inc.
4.5
%
Kaiser Aluminum Corp.
4.5
%
ICF International Inc.
4.4
%
TOTAL
50.5
%

Allocations are subject to change without notice

MARKET CAP BREAKDOWN

as of December 31, 2023
FUND
Micro Cap
4.9
%
Small Cap
64.2
%
Mid Cap
30.9
%
Large Cap
0
%

RELATED MEDIA

Important Risk Disclosures

Third Avenue Funds are distributed by Foreside Fund Services, LLC.  Investors should consider the investment objectives, risks, charges and expenses carefully before investing. Third Avenue Funds are offered by prospectus only.  The prospectuses and summary prospectuses are available on this website or by calling (800) 443-1021.  Read the prospectus or summary prospectus carefully before investing.

FUND RISKS: Please be aware that small-cap investments are subject to higher volatility and lower financial resources than large-cap investments. The markets for these securities are also less liquid than those for larger companies. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.

1 Active Share is the percentage of a fund’s portfolio that differs from the benchmark index. The Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Indices are not securities that can be purchased or sold, and their total returns are reflective of unmanaged portfolios. The returns include reinvestment of interest, capital gains and dividends.

Overall Morningstar rating, as of December 31, 2023, vs. 456 funds. TASCX was rated against the following numbers of Small Value Category Funds over the following time periods: 456 funds in the last three years, 427 funds in the last five years and 333 funds in the last ten years. With respect to these Small Value funds, TASCX received a Morningstar Rating of 4 stars for the three-year period, 5 stars for the five-year period and 5 stars for the ten-year period, respectively. Ratings based on risk adjusted return. Past performance is no guarantee of future results.

The Morningstar Rating for funds, or “star rating,” is calculated for mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period has the greatest impact because it is included in all three rating periods.

©2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results.

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For more information regarding Separate and Sub-Advised Accounts, including GIPS-compliant performance please contact us.

DATE OF INCEPTION

April 2018

PORTFOLIO MANAGER

Matthew Fine, CFA
Victor Cunningham, CFA
Portfolio Manager
View Bio >

PORTFOLIO CHARACTERISTICS

as of December 31, 2023
Weighted Market Cap
$2.2B
Median Market Cap
$2.4B
Price to Book
1.5x

Key Differentiators

Contrarian and Opportunistic

The Strategy seeks to invest in companies that are misunderstood and underestimated by the broader market. Our approach is to find value in out-of-favor industries, complex corporate structures or capital structures and special situations.

Balance Sheet Focused with a Long-Term Horizon

Our “balance sheet first” approach allows us to be patient investors resulting in low portfolio turnover. Our unconventional strategy strives to identify unique long-term opportunities where few are looking. 

Aggressive, Conservative, Deep Value Approach

Our goal is to provide above-average risk-adjusted returns over time. We strive to construct a unique, deep-value portfolio by combining disciplined stock selection with careful portfolio construction. High active share will be a by-product of our differentiated approach to finding value.

Objective:

Our Small-Cap Value strategy seeks long-term capital appreciation by investing in well-capitalized, North American, small-cap securities that we believe are mispriced by the market. The portfolio is constructed with an aim to deliver attractive risk-adjusted returns over time. The strategy is available as a Separately Managed Account and takes a more “concentrated approach” while striving to remain “fully invested” around core holdings.

Top 10 Holdings

as of December 31, 2023
PORTFOLIO
Tidewater, Inc.
10.4
%
Hamilton Beach Brands Holding Co.
9.6
%
ICF International
9.4
%
Seaboard Corporation
7.4
%
UMB Financial Corp.
7.1
%
Tri Pointe Homes, Inc.
7.1
%
Investors Title Co.
7.1
%
FRP Holdings, Inc.
7.0
%
MYR Group, Inc.
6.9
%
ProAssurance Corporation
5.5
%
TOTAL
70.4
%

Allocations are subject to change without notice

MARKET CAP BREAKDOWN

as of December 31, 2023
PORTFOLIO
Micro Cap
10.3
%
Small Cap
51.6
%
Mid Cap
38.1
%
Large Cap
0.0
%

GICS SECTOR WEIGHTINGS

as of December 31, 2023

Important Risk Disclosures

Sources for data noted above are from FactSet as of the date specified. Material presented is based on composite holdings and not a representative account. The firm maintains a complete list of composite descriptions, which are available upon request.  

Investors should consider the investment objectives, risks charges and expenses carefully before investing.  Risks that could negatively impact returns include: fluctuations in currencies versus the US dollar, political/social/economic instability in foreign countries where investments are made, lack of diversification and adverse general market conditions.

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw Hill Companies, Inc. (“S&P”) and is licensed for use by Third Avenue Management, LLC. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification.  Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

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MORNINGSTAR RATING

Cheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhDCheryl Smith, CFA, PhD
Overall Morningstar rating, as of June 30, 2023, vs. 444 funds. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.