HCC - Third Avenue Value Fund Q1 2024 Portfolio Manager Commentary

2024-04-23 02:45:00 ET

Summary

• Third Avenue Management is a New York City-based asset manager founded in 1986 that utilizes a disciplined, value-oriented, and asset-based approach to investing in publicly traded securities.
• For the three months ended March 31, 2024, the Third Avenue Value Fund returned 8.58%, as compared to the MSCI World Index, which returned 8.97%.
• During the quarter, the Fund enjoyed strong performance contributions from copper mining companies, Capstone Copper and Lundin Mining.
• We believe that the company is likely saleable today for a price well above the rumored offer price, although the most likely path forward still appears to be for the company to continue building a substantial amount of future business value as an independent company.

Dear Fellow Shareholders,

For the three months ended March 31st, 2024, the Third Avenue Value Fund (the "Fund") returned 8.58%, as compared to the MSCI World Index ² , which returned 8.97% ¹ . For further comparison, the MSCI World Value Index ² returned 7.65% in the first quarter. Over the trailing three- and five-year periods, the Fund has returned 16.03% and 15.16% annualized, respectively. Several weeks ago, our firm was grateful to be awarded the Best Equity Small-Size Fund Family Group Over Three Years at the 2024 United States LSEG Lipper Fund Awards. These awards recognize "fund management firms that have excelled in providing consistently strong risk-adjusted performance relative to their peers." This obviously did not happen overnight. At the end of 2017, our firm made several changes to some of our portfolio management teams, including to the team managing the Fund. The changes were designed to reestablish a deep commitment to our firm's original investment philosophy and reinvigorate an investment-centric culture across the entirety of our firm. These are not goals in themselves but, rather, priorities and disciplines we believe improve the probabilities of producing compelling returns for our firm's clients, and for our own capital, over the long term. It is, therefore, very gratifying to receive this award in acknowledgement of our entire firm's efforts....

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