Third Avenue
Third avenue Small Cap Value Fund
US Small-cap Value
Dec 2024 → Mar 2026
Our archive holds 4 letters from this strategy, behind 8 investment theses and positions in 27 companies. Every quote below is copied verbatim from the letter it came from.
4 letters in 3 years — follow all of Third Avenue for every strategy.
What it bought and sold
The Fund exited its position in Cantaloupe Inc, which is in the process of being acquired in a transaction expected to close imminently.
During the quarter, the Fund initiated positions in five new holdings, Qualys, Inc., Compass, Inc., Harley-Davidson, Inc., Catalyst Pharmaceuticals, Inc. and Robert Half Inc.
After an extremely long and contentious courting period, long- time Fund holding Unifirst finally agreed to be acquired by much larger competitor, Cintas.
During the quarter, the Fund initiated positions in five new holdings, Qualys, Inc., Compass, Inc., Harley-Davidson, Inc., Catalyst Pharmaceuticals, Inc. and Robert Half Inc.
During the quarter, the Fund initiated positions in five new holdings, Qualys, Inc., Compass, Inc., Harley-Davidson, Inc., Catalyst Pharmaceuticals, Inc. and Robert Half Inc.
During the quarter, the Fund initiated positions in five new holdings, Qualys, Inc., Compass, Inc., Harley-Davidson, Inc., Catalyst Pharmaceuticals, Inc. and Robert Half Inc.
During 2025, Liberation Day tariff fears led to an investment in auto supply company Visteon and additions to an existing investment in agricultural equipment maker Alamo Group.
our third energy-related holding Tidewater was only an indirect beneficiary of disruption and higher energy prices during the quarter.
The Fund initiated investments in BlueLinx and Boise Cascade in response.
During the quarter, the Fund initiated positions in five new holdings, Qualys, Inc., Compass, Inc., Harley-Davidson, Inc., Catalyst Pharmaceuticals, Inc. and Robert Half Inc.
Fears of regulatory changes that may result from the 2025 New York City mayoral election led to acute pessimism for banks with loan books exposed to rent-regulated properties, creating the opportunity to initiate a position in Flagstar and for existing holding OceanFirst to grow materially through the acquisition of Flushing Financial.
The Fund initiated investments in BlueLinx and Boise Cascade in response.
Fears of regulatory changes that may result from the 2025 New York City mayoral election led to acute pessimism for banks with loan books exposed to rent-regulated properties, creating the opportunity to initiate a position in Flagstar and for existing holding OceanFirst to grow materially through the acquisition of Flushing Financial.
Also held
Its investment theses
- Harley-Davidson, Inc.Mar 2026Harley-Davidson is a low-expectations turnaround with valuable financial services, net cash, and potential operating improvement under new management.
- Catalyst Pharmaceuticals, Inc.Mar 2026Catalyst is a profitable orphan-drug platform with strong cash generation, patent protection, and mid-teens growth potential from Firdapse.
- Compass, Inc.Mar 2026Compass is a tech-enabled residential brokerage positioned to benefit from industry consolidation, operating leverage, and eventual transaction recovery.
- Qualys, Inc.Mar 2026Qualys is a profitable, well-capitalized vulnerability management software leader with strong margins, cash flow, and potential A.I.-driven tailwinds.
- BlueLinx Holdings Inc.Mar 2025BlueLinx Holdings Inc. is a distribution business with a strong cash flow and net cash balance sheet, positioned to enhance operating margins and attract consolidation opportunities despite recent stock declines due to housing market concerns.
- Ambac Financial GroupDec 2024Ambac Financial Group is transforming its business by selling its legacy operations and focusing on building a high-margin, asset-light insurance platform, while leveraging its significant cash reserves and tax assets for future growth.
- Five Point HoldingsDec 2024Five Point’s cost reductions, land monetization, and debt reduction efforts position it for significant value creation
- OceanFirst FinancialDec 2024OceanFirst Financial is a well-established regional bank with a strong credit performance and a high-quality deposit base, currently undervalued due to conservative lending practices in commercial real estate, presenting potential for improved returns and shareholder wealth.