Matthew Fine, Portfolio Manager of the Third Avenue Value Fund featured in CNBC: This Fund is trouncing the S&P 500 by focusing on international stocks
Date: March 2023 Read the full article here
Key takeaways Include:
- Recent significant outperformance when compared to benchmark and broader market
- “Go where the opportunities are”: Matthew is finding value overseas in places such as the United Kingdom where the Fund had no exposure a year prior and now sits around 10%. Matthew also points to industries such as copper noting the demand has increased while the raw material has grown more scarce. The Fund’s U.S. exposure is under 25% as of 12/31/2022
- The Fund’s cash position rose during late 2022 as a result of trimming outperforming assets, those proceeds will likely be redeployed in the near future into equities fitting the fund’s mandate
- “There has been a huge swath of global public equity markets left uncovered, left to people like us, and it hasn’t been in recent years particularly competitive, which is why we’ve been able to succeed from a returns perspective the way that we have,” says Third Avenue Value Fund’s PM, Matthew Fine
The information in this article represents the opinions of the portfolio manager and is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed are those of the portfolio manager and may differ from those of other portfolio managers, or of the firm as a whole. The portfolio manager’s views are as of March 5, 2023 (except as otherwise stated), and are subject to change without notice. Prices of the securities in the fund may increase or decrease. Negative performance contributors during the quarter-ended December 31, 2022 included: Interfor Corp and Five Point Holdings, both sensitive to U.S. new home construction volumes, as well as Comerica Inc, Hawaiian Holdings and Jardine Cycle & Carriage.
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Past performance is no guarantee of future results. Mutual Fund returns include reinvestment of all distributions. Returns are annualized for periods longer than one year. The returns represent past performance and current performance may be lower or higher than performance quoted above. Investment return and principal value fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. For the most recent month-end performance, please visit the Fund’s website at thirdave.com.
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Distributor of Third Avenue Funds: Foreside Fund Services, LLC.
FUND RISKS: Risks that could negatively impact returns include: fluctuations in currencies versus the US dollar, political/social/economic instability in foreign countries where the Fund invests, lack of diversification, and adverse general market conditions. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.