Third Avenue Value Fund Buys 6 Stocks in 3rd Quarter
- By Holly LaFon
The Third Avenue Value Fund (Trades, Portfolio), formerly run by the legendary Martin Whitman, established six positions in the third quarter, it announced Monday.
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The intrinsic value of HKSE:01114
Now managed by Matthew Fine and Michael Fineman, the Third Avenue Value Fund (Trades, Portfolio) buys deeply discounted, cash-rich companies, which keeps its correlation to the indexes low. At the end of the second quarter, 99.23% of its holdings were distinct from an index.
The market's fascination with high-priced indexes powered by an overweighting in soaring technology stocks has provided the fund with a number of undervalued securities. Other market forces have afforded attractive selections as well.
"If there is a thematic string running through our most recent investment activity it is that trade war rhetoric has created opportunities in a number of very good businesses with attractive long-term prospects," the managers wrote in a second-quarter letter.
At the end of the third quarter, Third Avenue Value Fund (Trades, Portfolio) listed 33 positions with a value of $970 million.
Its third-quarter new buys were: Brilliance China Automotive Holdings Ltd. (HKSE:01114), Deutsche Bank AG (XTER:DBK), Buzzi Unicem SpA (BZU.MI), Hawaiian Holdings Inc. (HA), Hutchison Port Holdings Trust (NS8U.SI) and Five Point Holdings LLC (FPH).
Brilliance China Automotive Holdings Ltd. (HKSE:01114)
The fund purchased 13,755,903 shares of the company in the third quarter when the price averaged HK$13.73 per share. The holding occupies 1.86% of the portfolio.
Brilliance China Automotive Holdings Ltd. has a market cap of HK$63.87 billion; its shares were traded around HK$12.66 with a price-earnings ratio of 9.45 and price-sales ratio of 10.16. The trailing 12-month dividend yield of Brilliance China Automotive Holdings Ltd. is 0.87%. The forward dividend yield of Brilliance China Automotive Holdings Ltd. is 1.74%. Brilliance China Automotive Holdings Ltd. had annual average earnings growth of 18.20% over the past 10 years.
Deutsche Bank AG (XTER:DBK)
The fund purchased 1,639,088 shares of the company, for a portfolio weight of 2.21%. The stock's third-quarter share price averaged 10 euros.
Deutsche Bank AG has a market cap of 20.01 billion euros; its shares were traded around 9.71 euros with a price-sales ratio of 0.80. The trailing 12-month dividend yield of Deutsche Bank AG is 1.13%. The forward dividend yield of Deutsche Bank AG is 1.13%.
Buzzi Unicem SpA (BZU.MI)
The fund purchased 1,276,478 shares of the company, for a portfolio weight of 2.89%. The stock's third quarter share price averaged 21 euros.
Buzzi Unicem SpA has a market cap of 3.49 billion euros; its shares were traded around 18.53 euros with a price-earnings ratio of 18.51. The trailing 12-month dividend yield of Buzzi Unicem SpA is 0.65%. The forward dividend yield of Buzzi Unicem SpA is 0.65%. Buzzi Unicem SpA had an annual average earnings growth of 5% over the past five years.
Hawaiian Holdings Inc. (HA)
The fund purchased 1,276,478 shares of the company, for a 1.9% portfolio weight. The stock's third quarter share price averaged $38.
Hawaiian Holdings Inc. has a market cap of $1.92 billion; its shares were traded around $37.86 with a price-earnings ratio of 5.61 and price-sales ratio of 0.72. The trailing 12-month dividend yield of Hawaiian Holdings Inc. is 1.27%. The forward dividend yield of Hawaiian Holdings Inc. is 1.26%. Hawaiian Holdings Inc. had annual average earnings growth of 18.40% over the past 10 years. GuruFocus rated Hawaiian Holdings Inc the business predictability rank of 3-star.
Hutchison Port Holdings Trust (NS8U.SI)
The fund purchased 89,278,927 shares of the company, for a 2.35% portfolio weight. The stock's third quarter share price averaged 30 cents.
Hutchison Port Holdings Trust has a market cap of $2.18 billion; its shares were traded around $0.26 with a price-earnings ratio of 25 and price-sales ratio of 1.48. The trailing 12-month dividend yield of Hutchison Port Holdings Trust is 9.94%. The forward dividend yield of Hutchison Port Holdings Trust is 8.6%.
Five Point Holdings LLC (FPH)
The fund purchased 190,610 shares of the company, for a 2.35% portfolio weight. The stock's third quarter share price averaged $12.
Five Point Holdings LLC has a market cap of $608.730 million; its shares were traded around $9.15 with a price-earnings ratio of 24.06 and price-sales ratio of 10.83.
See the fund's portfolio here.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 5 Warning Signs with HKSE:01114. Click here to check it out.
The intrinsic value of HKSE:01114