This fund invests primarily in micro- (22.45% of assets) and small-cap stocks (49.15%), giving you exposure to a market component that, while volatile, can greatly boost your portfolio returns.
The Third Avenue Small-Cap Value Investor Fund (TVSVX)
from Sound Advice
The Third Avenue Small-Cap Value Investor Fund (TVSVX) invests in companies with small capitalizations using a value-oriented approach. Small-cap stocks perform better than large-cap stocks over the longer term because they are pure plays on the early stages of new industries and inventions. They have more dynamic and entrepreneurial management, and they are much more likely to be the target of an acquisition or merger which is usually profitable. Not only do small caps perform better over the long run, they generally benefit strongly from a recovering economy.
In making decisions regarding a particular company, management evaluates the entire business enterprise, assesses the assets, and ascertains the NAV. From there, a credit profile is created to ensure that the company has the ability to meet its obligations, take advantage of investment opportunities, and survive financial storms.
Investment Digest Editor’s Note: As of the last published report, the fund’s top holdings are in the Industrial sector (22.21% of assets), Financial Services (19.11%), and Technology (18.07%).
Gray Cardiff, Sound Advice, www.soundadvice-newsletter.com, 800-825-7007, November 3, 2014