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Third Avenue Value Fund Exits Several Positions in 1st Quarter

- By Tiziano Frateschi

The Third Avenue Value Fund (Trades, Portfolio) sold shares of the following stocks during the first quarter.


The fund sold out of Total SA (FP.PA). The trade had an impact of -3.14% on the portfolio.

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Third Avenue's Ocean Rig UDW Inc. (ORIG) position was dissolved following its merger with Transocean Ltd. (RIG). The trade had an impact of -3% on the portfolio.

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The offshore drilling contractor has a market cap of $2.54 billion and an enterprise value of $2.22 billion.


GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 3.79% and return on assets of 3.05% are outperforming 64% of companies in the Global Oil and Gas Drilling industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.93 is above the industry median of 0.40.

The fund closed its Bank of New York Mellon Corp. (BK) holding. The trade had an impact of -2.78% on the portfolio.

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The investment bank has a market cap of $48.97 billion.


GuruFocus gives the company a profitability and growth rating of 3 out of 10. While the return on equity of 9.85% is outperforming the sector, the return on assets of 1.18% is underperforming 55% of companies in the Global Asset Management industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 2.85 is far below the industry median of 480.

The company's largest guru shareholder is Warren Buffett (Trades, Portfolio) with 8.48% of outstanding shares, followed by Dodge & Cox with 5.26%, First Eagle Investment (Trades, Portfolio) with 2.03% and Chris Davis (Trades, Portfolio) with 1.83%.

The fund divested of its White Mountains Insurance Group Ltd. (WTM) holding, impacting the portfolio by -2.69%.

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The specialty property and casualty insurance provider has a market cap of $2.9 billion and an enterprise value of $2.64 billion.


GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on equity of -4.52% and return on assets of -4.06% are outperforming 89% of companies in the Global Insurance - Property and Casualty industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.57 is below the industry median of 2.82.


The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.48% of outstanding shares, followed by the Hotchkis & Wiley with 0.07% and Chuck Royce (Trades, Portfolio) with 0.07%.


The Value Fund trimmed 53.65% off Brookfield Asset Management Inc. (BAM.A) holding, impacting the portfolio by -2.62%.

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Third Avenue reduced its CK Hutchison Holdings Ltd. (HKSE:00001) stake by 26.43%, impacting the portfolio by -1.51%.

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The fund reduced its position in Lennar Corp. (LEN) by 44.02%, impacting the portfolio by -1.26%.

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The homebuilder has a market cap of $16.04 billion and an enterprise value of $25.49 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 12.74% and return on assets of 6.34% are outperforming 66% of companies in the Global Residential Construction industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.10 is below the industry median of 0.35.

The company's largest guru shareholder is Glenn Greenberg (Trades, Portfolio) with 1.06% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.80%, Ken Fisher (Trades, Portfolio) with 0.52%, Simons' firm with 0.50% and the Smead Value Fund (Trades, Portfolio) with 0.28%.

Third Avenue curbed its Bayerische Motoren Werke AG (BMW) holding by 5.12% . The trade had an impact of -0.25% on the portfolio.

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Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.