Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Third Avenue Real Estate Value Fund posted a return of +11.61% (after fees) in the calendar year, compared to the MSCI ACWI IMI Core Real Estate Index’s +9.86% (before fees) return. Since its inception in 1998, the Fund has generated an annualized return of +8.96% (after fees). This year marks the 40th anniversary of Third Avenue Management, highlighting its commitment to its core principles and its adaptability in seeking long-term wealth creation for its clients. The Fund had 40.3% of its capital invested in U.S.-based companies, 27.5% in North American-based companies, 27.6% in International Real Estate companies, and the remaining 4.6% in Cash, Debt & Options. The Fund anticipates that the next five years may resemble the early 2000s, a time characterized by attractive valuations in U.S.-listed real estate. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks like Lennar Corporation (NYSE:LEN). Lennar Corporation (NYSE:LEN) is a leading home builder in America operates primarily under the Lennar brand. On March 06, 2026, Lennar Corporation (NYSE:LEN) stock closed at $101.17 per share. One-month return of Lennar Corporation (NYSE:LEN) was -11.32%, and its shares lost 19.21% over the past 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $24.988 billion.
Third Avenue Small-Cap Value Fund stated the following regarding Lennar Corporation (NYSE:LEN) in its fourth quarter 2025 investor letter:
“Coincidentally, the recent quarter was one of the most active periods of resource conversion for the Real Estate Value Fund holdings in many years. As a matter of fact, more than one-third of the underlying portfolio engaged in (or announced) such initiatives during the period, with some of the most notable including: Lennar Corporation (NYSE:LEN), the second largest homebuilder in the U.S. completed an exchange offer for its remaining 20% stake in Millrose Properties, a “land banking” company that Lennar spun-out earlier in the year. The transaction effectively acted as an accelerated share repurchase, with Lennar exchanging the Millrose shares for 5% of its outstanding A shares. Not only does this deal move Lennar closer to a “land light” model, but it also seems to enhance the company’s long-term earnings potential on a per-share basis.”
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Lennar Corporation (NYSE:LEN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 68 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of the fourth quarter, up from 63 in the previous quarter. While we acknowledge the risk and potential of Lennar Corporation (NYSE:LEN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Lennar Corporation (NYSE:LEN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
