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Third Avenue Value and small cap

ET91
in Fund Discussions
So it looks like Ian Lapey is out as lead portfolio manager of third avenue value fund. Chip Rewey III is now lead portfolio manager of third avenue value fund. Mr. Rewey is also co-lead portfolio manager of third avenue small cap fund. Mr. Rewey comes from Cramer Rosenthal McGlynn. Performance of MFs from Cramer Rosenthal McGlynn (CRISX, CRIEX, CRIGX, CRIAX and CRIMX) is not great. Performance of Third Avenue Value and Third Avenue small cap have not been good (even going back 10 years). I own both TAVFX and TAREX.

Comments

  • David_Snowball
    Curious. I hear rumblings of dark doings at Third Avenue from one of my senior colleagues. The insider buzz seems to be a struggle for the soul of the company and control of its next generation. I have no independent information to confirm that speculation, but this sort of move seems consistent with it.

    David
  • rjb112
    http://www.thirdave.com/top-news/robert-chip-rewey-iii-joins-third-avenue-investment-team/

    http://www.thirdave.com/wp-content/uploads/2014/06/06-10-14-TAM-Press-Release.pdf

  • CrashCrash
    edited June 2014
    I unloaded TAVIX in early '09. Amit Wadhwaney was still alone at the helm. It had already stalled, and stayed stalled. I let it go before the '09 Market recovery began. I moved all my shares to MAPIX at the time. Yes, the ticker is correct. They added a share class. Now, that particular ticker takes $100,000.00 to get in. They had done the right thing by existing shareholders and grandfathered us into the lower-fee class. When Matthews did that, they did NOT do what 3rd Ave. did for shareholders. That fact truly sucked. But Matthews has been good to me.
    http://quotes.morningstar.com/fund/tavix/f?pgid=hetopquote&t=TAVIX
    http://quotes.morningstar.com/fund/f?t=MAPIX&region=USA
  • jeffop
    from their site:

    Robert "Chip" Rewey, III, CFA
    Lead Portfolio Manager
    Years with Third Avenue: 1

    Well, I gave him a whole year... I'm out!!
  • rjb112
    jeffop said:

    from their site:

    Robert "Chip" Rewey, III, CFA
    Lead Portfolio Manager
    Years with Third Avenue: 1

    Well, I gave him a whole year... I'm out!!

    ++++++++++++
    The press release makes it seem like he just joined Third Avenue today.

    http://www.thirdave.com/top-news/robert-chip-rewey-iii-joins-third-avenue-investment-team/
  • CrashCrash
    I hear you, jeffop.
    http://online.wsj.com/public/quotes/fund_snapshot.html?symbol=TAVIX
  • Ace
    Third Avenue does seem to be having their struggles lately. I know a senior level product salesperson that recently left there. Havent had a chance to talk to him why he left, but always a red flag for me when a top salesperson leaves a firm.
  • billyc
    I can only speak to the Third Avenue offerings that I own, but they have done exceptionally well. Check out TFCVX (high-yield bond fund) and TVRVX (real estate fund) -- very solid performance
  • CrashCrash
    billyc: Just looked at TFCVX. Way too much risk for me. I see that the risk has produced high RETURNS for you, too. Just too rich for my blood. I own no specific HY bond fund. But if I were inclined, I'd have to consider that one. But no, not for me.
  • billyc
    Crash -- You've got TFCVX pegged correctly! As a small part of a diversified portfolio, it gives the return for my non-stock holdings some zing!
  • billyc
    I'll say one more thing in Third Avenue's favor -- their shareholder reporting is top-notch. Their fund manager's don't just go through the motions; they actually explain their investment philosophies and views of the market quite well.
  • dryflower
    So it looks like Ian Lapey is out as lead portfolio manager of third avenue value fund.
    Something is wrong here. I own TAVFX, and my kneejerk reaction is simply to sell it. It's in an IRA so there are no tax considerations. This is a big, big deal. I'm surprised there is so little discussion here or so little information on the web.

    On the other hand, nothing drastic is likely to happen soon absent something drastic in the market itself. And based on what Marty Whitman has said, if I sell now I will be selling a basket of stocks stocks

    1. At yooge discounts to their readily ascertainable net asset value

    2. that have a super strong financial position

    3. That Third Avenue management believes can grow at at least 10% per annum compounded.

    (Seems as though the buyer would be getting the better end of that deal.)

    On the 3rd hand:) there are certainly lots and lots of funds with an equally bright-looking future.

    I feel like there is a dearth of information here, and I am really not liking the situation. As there are no tax consequences I am likely to say adios and start afresh.





  • InformalEconomist
    @dryflower: Many have gone through the questioning expressed in your post. After furrowing my brow for about 5 years, I said good-bye to TAVFX. My deeper fear was that Marty Whitman and crew had gone into Asia without the knowledge base of, say, a Matthews fund family.
    I am basically relieved to be done with TAVFX and TAVIX. They were both great for a while. But things change.
    Good luck with your decision making.
  • [Deleted User]
    The user and all related content has been deleted.
  • dryflower
    I really don't like the way the announcement has been handled. It's all happy-happy....joy-joy. And no mention of Ian Lapey.


    Will they be photo-shopping him out of the old pictures next?

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