Marty Whitman’s value philosophy prevails at Third Avenue’s Small-Cap Value Fund Investor Class (MUTF:TVSVX). The three pillars of which are creditworthiness (strong balance sheet), potential to compound book value and growth and opportunity to purchase at a significant discount to net asset value.
Although it may seem contradictory for a value fund to be active at a time when it continues to trade at near all-time highs or set new highs, Third Value has been “finding plenty to do.”
The fund has been operating as the truffle-hunting pigs of small-cap value companies and adding to its portfolio accordingly. The managers admit that while there are “pockets of high expectations in the broader market” their philosophy — rooted in Whitman’s and idea origination process — has led them to discover and execute new positions.
Below are the fund’s best small-cap stocks to pick from.