Third Avenue Value Fund Q4 2024 Commentary

2025-01-28 10:35:00 ET

Summary

• Third Avenue Value Fund returned -9.59% in Q4 2024, as compared to the MSCI World Index 1, which returned -0.07%, and the MSCI World Value Index 2, which returned -4.06%.
• Performance during the quarter was frustrating and, furthermore, led to a lackluster year in which the Fund returned -2.20%.
• Higher interest rates in the U.S. have dampened demand for cars.

Dear Fellow Shareholders,

For the three months ended December 31st, 2024, the Third Avenue Value Fund (the “Fund”) returned -9.59%, as compared to the MSCI World Index 1, which returned -0.07%, and the MSCI World Value Index 2, which returned -4.06%.

Performance during the quarter was frustrating and, furthermore, led to a lackluster year in which the Fund returned -2.20%. That said, the Fund has materially outperformed relevant indices over the last three and five years, as well as over the 34 years since its inception. These larger goals simply cannot be accomplished without constructing a portfolio that is highly distinct from broad market indices. In other words, being out of sync with markets is a prerequisite for producing superior long-term returns, even if it is sometimes an unpleasant cross to bear....

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