Third Avenue Value Fund expands portfolio with strategic additions in Q2 2024

Harbour Energy PLC is created as a major new holding company with a 2.8% stake

Founded in 1990 by the legendary Martin J. Whitman, the Third Avenue Value Fund (Trades, Portfolio) is known for its value-oriented investment strategy. The Fund focuses on global equities of all market capitalizations and opportunistic credit investments with the goal of long-term capital appreciation. Investments are carefully selected based on their financial strength, potential to increase net asset value, and significant discounts to the Fund’s conservative net asset value estimates. This approach has always sought to uncover contrarian and special opportunities across different sectors and regions.

Summary of new purchases

In the second quarter of 2024, the Third Avenue Value Fund (Trades, Portfolio) added three new stocks to its portfolio. Specifically:

• Harbour Energy PLC (LSE:HBR) was the largest new addition with 5,506,445 shares, representing 2.8% of the portfolio and valued at 19.68 million.

• This was followed by Close Brothers Group PLC (LSE:CBG) with 2,184,235 shares or approximately 1.77% of the portfolio with a total value of 12.43 million.

• The third new addition was Paltac Corp (TSE:8283) with 226,500 shares, representing 0.97% of the portfolio and valued at 6.86 million.

Key positions are being expanded

The fund also strategically increased its holdings in four stocks, with significant adjustments in the following areas:

• Genting Singapore Ltd (SGX:G13) saw an increase of 6,104,800 shares, bringing the total to 23,698,500 shares. This adjustment increased the share count by 34.7%, impacting the portfolio by 0.58% and valued at S$15.82 million.

• CK Hutchison Holdings Ltd (HKSE:00001) also saw an increase of 575,175 shares, bringing the total to 4,135,655 shares, an increase of 16.15% worth HK$20.09 million.

Reduction of key positions

In turn, the fund reduced its positions in three stocks, with significant declines in the following stocks:

• Ultrapar Participacoes SA (BSP:UGPA3) by 2,231,725 ​​shares, resulting in a 43.45% decrease in shares and a 2.05% impact on the portfolio. The stock traded at an average price of R$28.42 during the quarter, generating a return of -20.61% in the last three months and -15.58% year-to-date.

• Tidewater Inc (NYSE:TDW) was reduced by 70,999 shares, a reduction of 15.89%, which impacted the portfolio by 0.77%. The stock traded at an average price of $83.31 during the quarter and has returned 1.10% over the past three months and 28.69% year-to-date.

Portfolio overview

In the second quarter of 2024, the Third Avenue Value Fund (Trades, Portfolio) portfolio included 32 stocks. The largest holdings were 7.44% in Capstone Copper Corp (TSX:CS), 6.47% in Warrior Met Coal Inc (NYSE:HCC), 4.99% in Deutsche Bank AG (XTER:DBK), 4.91% in Tidewater Inc (NYSE:TDW) and 4.57% in Bayerische Motoren Werke AG (XTER:BMW). The holdings are predominantly concentrated in eight sectors: basic materials, financial services, energy, industrials, consumer discretionary, technology, consumer defensives and communication services.

The story goes on

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