U.S. Markets closed

Third Avenue Exits Ralph Lauren, Buys Tidewater in 4th Quarter

- By Tiziano Frateschi

Third Avenue Management was founded by Martin Whitman ( Trades , Portfolio ) in 1986. During the fourth quarter, the Third Avenue Value Fund traded the following stocks.


The fund closed its position in Ralph Lauren Corp. (RL), impacting the portfolio by -2.19%.

04298612a6a28a7a0b4007efe14ef492.png

The fashion apparel manufacturer has a market cap of $8.53 billion and an enterprise value of $7.77 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 2.33% and return on assets (ROA) of 1.37% are underperforming 78% of companies in the Global Apparel Manufacturing industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 1.89 is above the industry median of 1.50.

Jim Simons (Trades, Portfolio) is the company"s largest shareholder among the gurus with 1.1% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.43% and Joel Greenblatt (Trades, Portfolio) with 0.41%.

The fund"s Brookdale Senior Living Inc. (BKD) position was closed. The trade had an impact of -1.97% on the portfolio.

2ed0cde53301f2badc0eb61cafc2d90c.png

The operator of senior living communities has a market cap of $1.75 billion and an enterprise value of $6.73 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The ROE of -43.58% and ROA of -9.86% are underperforming 89% of companies in the Global Long-Term Care Facilities industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.37.

The company"s largest guru shareholder is Larry Robbins (Trades, Portfolio) with 24.23% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 7.67% and Chuck Royce (Trades, Portfolio) with 1.77%.

The fund divested of its Avnet Inc. (AVT) holding. The transaction had an impact of -1.7% on the portfolio.

7a5fa8adaf99445c18a76f58cae95d03.png

The electronic components distributor has a market cap of $5.05 billion and an enterprise value of $5.98 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The ROE of 10.28% and ROA of 4.80% are outperforming 61% of companies in the Global Electronics Distribution industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 0.44 is below the industry median of 1.44.

With 6.74% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company"s largest guru shareholder, followed by Hotchkis & Wiley with 1.24% and First Pacific Advisors (Trades, Portfolio) with 1.02%.

The fund established a 584,173-share position in Tidewater Inc. (TDW), expanding the portfolio 1.65%.

The company, which provides vessels to the offshore drilling industry, has a market cap of $622.4 billion and an enterprise value of $615.13 million.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. The ROE of -184.03% and ROA of -69.08% are underperforming 99% of the companies in the Global Oil and Gas Equipment and Services industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 1.02 is above the industry median of 0.52.

The company"s largest shareholder among the gurus is Third Avenue Management (Trades, Portfolio) with 2.89% of outstanding shares, followed by the fund with 2.67%.

Third Avenue exited its position in Shire PLC (SHPG). The trade had an impact of -1.64% on the portfolio.

9aa5c50a2d9f2f9f3136fecd356151cd.png

The Irish biotechnology company has a market cap of $47.86 billion and an enterprise value of $66.55 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The ROE of 5.35% and ROA of 2.41% are outperforming 79% of companies in the Global Biotechnology industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.01 is below the industry median of 51.38.

Robbins is the company"s largest guru shareholder with 1.94% of outstanding shares, followed by Paulson with 1.04% and Lee Ainslie (Trades, Portfolio) with 0.65%.

The LivaNova PLC (LIVN) holding was trimmed 58.86%, impacting the portfolio by -1.45%.

1ff376c90ce06a823bf5435a2c7d4f44.png

The medical technology company has a market cap of $3.93 billion and an enterprise value of $3.97 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The ROE of 3.15% and ROA of 2.30% are outperforming 50% of companies in the Global Medical Devices industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 0.53 is below the industry median of 2.87.

The largest shareholder of the company among the gurus is Columbia Wanger (Trades, Portfolio) with 3.1% of outstanding shares, followed by Cohen with 1.26%, Simons with 1.15% and NWQ Managers (Trades, Portfolio) with 1.04%.

The fund purchased 408,422 shares of Warrior Met Coal Inc. (HCC), giving it 1.1% portfolio space.

The metallurgical coal miner has a market cap of $1.47 billion and an enterprise value of $1.22 billion.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. The ROE of 62.56% and ROA of 49.68% are outperforming 94% of companies in the Global Coal industry. Financial strength has a rating of 9 out of 10. The cash-debt ratio of 56.55 is above the industry median on 0.52.

Simons is the company"s largest guru shareholder with 0.95% of outstanding shares, followed by the fund with 0.76% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

Disclosure: I do not own any stocks mentioned in this article.

This article first appeared on GuruFocus.