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iStar Financial Inc. Message Board

  • jdb_1234 jdb_1234 Dec 1, 2008 11:19 AM Flag

    Third Ave

    Below is a link to the recent shareholder letter from Third Ave. Notice the commentary for the Real Estate Fund. They have purchased iStar debt. The fund manager notes that even in BK, he thinks recovery will be above current market prices. I have thought that iStar needs to get after it and buy as much debt this quarter because others are seeing the value. When enough others see the value, the debt price goes up and the strategy doesn't work as well. Admittedly, Third Ave is a deep value fund, so they will be very early.


    http://www.thirdave.com/ta/documents/sl/shareholderletters084Q.pdf

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    • Thanks for the post. I am a big fan of Whitman and am in the Value Fund, but hadn't read the letter for the Real Estate Fund. Classice Third Avenue reasoning for buying into the debt. Note they bought at crazy YTM's. They have the ability and background knowledge to know what's good in distressed securities (though Marty sure was, ah, "early," with his commitments to MBIA and AMBAC), so I am encouraged to have been researching IStar and come to similar conclusions. 4 7/8% bond due 1/15/09 at 50% YTM is a total aberration! There's no way SFI runs into that much trouble that quickly...