Third Avenue Management Reduces Stake in Deutsche Bank AG by 33.8%

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Wed, May 14, 2025, 9:05 AM 3 min read

Exploring the Strategic Moves of Third Avenue Management (Trades, Portfolio) in Q1 2025

Third Avenue Management (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2025, providing insights into its investment moves during this period. Founded by legendary value investor Martin Whitman, Third Avenue Management (Trades, Portfolio) manages mutual funds, separate accounts, and hedge funds. Since 2002, Third Avenue Management (Trades, Portfolio) has partnered with Affiliated Managers Group, a publicly traded asset manager that has invested in a diverse stable of boutique asset management firms. This partnership allowed Third Avenue to extend ownership rights to its senior professionals, including key members of the investment team, providing a clear and transparent succession plan for the Firm and all of its principals. Third Avenue Management (Trades, Portfolio) manages assets across four core strategies Value, Small-Cap, Real Estate, and International Real Estate which are available to investors through 40Act mutual funds, institutional separately managed accounts, and a Real Estate Value Fund UCITS for non-U.S. investors. For over 25 years, Third Avenue Management (Trades, Portfolio) has consistently pursued a fundamental, bottom-up approach to deep value and distressed investing. Third Avenue takes an unconstrained investment approach and pursues opportunities across market capitalizations and geographies. The firm's core real estate, value, and small-cap strategies focus on high-conviction ideas, pursuing maximum allocation to the best risk-adjusted return prospects across our universe.

Summary of New Buy

Third Avenue Management (Trades, Portfolio) added a total of 2 stocks, among them:

The most significant addition was PulteGroup Inc (NYSE:PHM), with 63,800 shares, accounting for 1.32% of the portfolio and a total value of $6,558,640.
The second largest addition to the portfolio was BlueLinx Holdings Inc (NYSE:BXC), consisting of 29,869 shares, representing approximately 0.45% of the portfolio, with a total value of $2,239,580.

Key Position Increases

Third Avenue Management (Trades, Portfolio) also increased stakes in a total of 10 stocks, among them:

The most notable increase was Tidewater Inc (NYSE:TDW), with an additional 221,079 shares, bringing the total to 809,258 shares. This adjustment represents a significant 37.59% increase in share count, a 1.87% impact on the current portfolio, with a total value of $34,207,340.
The second largest increase was Valaris Ltd (NYSE:VAL), with an additional 143,231 shares, bringing the total to 569,839. This adjustment represents a significant 33.57% increase in share count, with a total value of $22,371,880.

Summary of Sold Out

Third Avenue Management (Trades, Portfolio) completely exited 1 holding in the first quarter of 2025, as detailed below:

Retail Opportunity Investments Corp (ROIC): Third Avenue Management (Trades, Portfolio) sold all 90,000 shares, resulting in a -0.3% impact on the portfolio.

Key Position Reduces

Third Avenue Management (Trades, Portfolio) also reduced positions in 13 stocks. The most significant changes include:

Reduced Deutsche Bank AG (NYSE:DB) by 738,934 shares, resulting in a -33.8% decrease in shares and a -2.46% impact on the portfolio. The stock traded at an average price of $20.98 during the quarter and has returned 36.93% over the past 3 months and 62.23% year-to-date.
Reduced American Homes 4 Rent (NYSE:AMH) by 128,661 shares, resulting in a -40.05% reduction in shares and a -0.93% impact on the portfolio. The stock traded at an average price of $35.72 during the quarter and has returned 6.58% over the past 3 months and 0.37% year-to-date.

Portfolio Overview

At the first quarter of 2025, Third Avenue Management (Trades, Portfolio)'s portfolio included 61 stocks, with top holdings including 6.86% in Tidewater Inc (NYSE:TDW), 6.84% in Deutsche Bank AG (NYSE:DB), 5.87% in Warrior Met Coal Inc (NYSE:HCC), 4.49% in Valaris Ltd (NYSE:VAL), and 4.42% in Five Point Holdings LLC (NYSE:FPH).

The holdings are mainly concentrated in 8 of the 11 industries: Financial Services, Real Estate, Energy, Industrials, Consumer Cyclical, Basic Materials, Healthcare, and Communication Services.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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