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Third Avenue Value Fund Exits Cavco Industries, Toyota

- By Tiziano Frateschi

Third Avenue Value Fund (Trades, Portfolio), which provides multiple investment solutions with unique exposures and return profiles, sold shares in the following stocks during the third quarter.


The fund exited its Cavco Industries Inc. (CVCO) holding. The trade had an impact of -3.93% on the portfolio.

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The company, which designs and produces factory-built homes, has a market cap of $2.27 billion and an enterprise value of $2.14 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 15.88% and return on assets of 10.61% are outperforming 80% of companies in the Global Residential Construction industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 3.24 is above the industry median of 0.35.

The company's largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 3.45% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 3.39% and Columbia Wanger (Trades, Portfolio) with 2%.

The fund closed its position in Toyota Industries Corp. (TSE:6201). The trade had an impact of -2.62% on the portfolio.

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The fund sold out of its Henderson Land Development Co. Ltd. (HKSE:00012) stake. The trade had an impact of -2.52% on the portfolio.

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The fund reduced its Total SA (FP.PA) stake by 37.98%, impacting the portfolio by -1.96%.

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The Tejon Ranch Co. (TRC) holding was trimmed 58.71%. The transaction had an impact of -1.94% on the portfolio.

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The diversified real estate developer and agribusiness company has a market cap of $549.06 million and an enterprise value of $564.84 million.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 0.22% and return on assets of 0.16% are underperforming 80% of companies in the Global Real Estate - General industry. Its financial strength is rated of 6 out of 10. The cash-debt ratio of 1.19 is above the industry median of 0.33.

Another notable guru shareholder of the company is Chuck Royce (Trades, Portfolio) with 6.48% of outstanding shares, followed by Gabelli with 2.39% and Third Avenue with 2.15%.

The fund curbed its Bank of New York Mellon Corp. (BK) position by 40.19%. The trade had an impact of -1.91% on the portfolio.

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The bank and financial services company has a market cap of $52.18 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 10.49% is outperforming the sector, the return on assets of 1.24% is underperforming 66% of companies in the Global Asset Management industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 3.14 is below the industry median of 85.28.

Warren Buffett (Trades, Portfolio) is the largest guru shareholder of the company with 6.48% of outstanding shares, followed by Dodge & Cox with 4.41% and First Eagle Investment (Trades, Portfolio) with 1.91%.

The fund sold out of KeyCorp. (KEY). This trade impacted the portfolio by -1.49%.

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The company operates in the financial service domain. It has a market cap of $21.19 billion and an enterprise value of $33.28 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The return on equity of 9.27% and return on assets of 1.07% are outperforming 54% of companies in the Global Banks - Regional - U.S. industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.05 is below the industry median of 1.22.

The largest guru shareholder of the company is Barrow, Hanley, Mewhinney & Strauss with 1.52% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.87% and Richard Pzena (Trades, Portfolio) with 0.67%.

The Pargesa Holding SA (PARG.SW) stake was reduced by 43.87%, impacting the portfolio by -1.14%.

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The Arcos Dorados Holdings Inc. (ARCO) position was closed, impacting the portfolio by -0.89%.

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The McDonald's franchisee has a market cap of $1.4 billion and an enterprise value of $1.81 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 21.40% and return on assets of 5.75% are outperforming 62% of companies in the Global Restaurants industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.35 is below the industry median of 0.68.

Bill Gates (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.46% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.09% and Jeff Auxier (Trades, Portfolio) with 0.07%.

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

This article first appeared on GuruFocus.