The top five holdings of this small cap fund are: Aspen Insurance Holdings Ltd (AHL, 5.92% of assets); Tidewater Inc (TDW, 4.31%); FTI Consulting Inc (FCN, 3.79%); MYR Group Inc (MYRG, 3.75%); and Five Point Holdings LLC A (FPH, 3.44%).
Third Avenue Small Cap Value Investor Fund (TVSVX)
From Sound Advice
Numerous studies show that small caps perform better over the long run than the market as a whole. Small Caps 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 quite profitable.
Third Avenue Small Cap Value Investor Fund (TVSVX) invests in companies with small capitalizations using the same value-oriented approach as it does with its real estate value fund, Third Avenue Real Estate Value Investor (TVRVX). Management scours the investment universe for companies that combine the three main features: creditworthiness, a meaningful discount to a conservatively estimated net asset value, and the ability to consistently grow NAV, with an initial targeted holding period of three to five years.
A patient and price conscious acquisition is a critical first step in both protecting capital and in realizing an attractive investment return.
Gray Cardiff, Sound Advice, www.soundadvice-newsletter.com, 800-825-7007, October 31, 2018