The top five holdings of this fund are Weyerhaeuser Co (WY, 6.23% of assets), Brookfield Asset Management Inc Class A (BAM.A.TO, 5.37%), Five Point Holdings LLC A (FPH, 5.16%),
Lennar Corp (LEN, 5.03%), and CK Asset Holdings Ltd (01113.HK, 4.88%).
Third Avenue Real Estate Value Fund Investor Class (TVRVX)
From Sound Advice
Commercial real estate prices remain historically high as low interest rates have pushed down real estate capitalization (cap) rates to historically low levels (like bond yields). The Sound Advice portfolio only includes real estate stocks offering an extraordinary value now.
Third Avenue Real Estate Value Investor Fund (TVRVX) is a global real estate fund which means it is not confined to US real estate with low cap rates. Management looks for growth more than current income by focusing on real estate operating companies which, unlike REITs, can reinvest profits back into the business.
Management also searches for opportunities in different aspects of a real estate company’s capital structure by investing in senior debt in addition to equity. Also, unlike the typical REIT, management will go to cash when asset prices are generally high. Cash is preserved for
scooping up opportunities.
This fund is loaded with good values substantially below their net asset values (NAV) with strong growth prospects. Management has a similar approach to ours because it is very price conscious, especially in relation to net asset value. Just as we do at Sound Advice, they
eat their own cooking—they invest a substantial amount of their personal assets into their funds.
Gray Cardiff, Sound Advice, www.soundadvice-newsletter.com, 800-825-7007, October 2019