Here’s Why Third Avenue Management Sold its CatchMark Timber Trust (CTT) Stake

Third Avenue Management, an investment management company, released its “Real Estate Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund returned a -15.39% (after tax) in the second quarter compared to -17.22% for its benchmark index, the FTSE EPRA NAREIT Developed Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Third Avenue Management discussed stocks like CatchMark Timber Trust, Inc. (NYSE:CTT) in the second quarter investor letter. Headquartered in Atlanta, CatchMark Timber Trust, Inc. (NYSE:CTT) owns and operates timberlands located in the United States. On September 6, 2022, CatchMark Timber Trust, Inc. (NYSE:CTT) stock closed at $10.58 per share. One-month return of CatchMark Timber Trust, Inc. (NYSE:CTT) was -3.64% and its shares lost 8.16% of their value over the last 52 weeks. CatchMark Timber Trust, Inc. (NYSE:CTT) has a market capitalization of $521.578 million.

Here is what Third Avenue Management specifically said about CatchMark Timber Trust, Inc. (NYSE:CTT):

“The primary contributors to performance during the period included the Fund’s investments in CatchMark Timber Trust, Inc. (NYSE:CTT) and certain Hong Kong-based real estate operating companies (CK Asset and Wharf Holdings). Notwithstanding, the Fund was more generally impacted by broad-based market volatility in the quarter with some of the most significant detractors to performance attributable to the Fund’s investments in US-based real estate operating companies with extensive development activities (Five Point and Trinity Place) and those with meaningful exposure to industrial real estate (Prologis, Segro, and First Industrial). Further details on these positions, as well as additions to D.R. Horton and CBRE Group and the historically-wide price-to-value gap for the Fund’s holdings are included herein.

Along these lines, the Fund exited its position in the common stock of Catchmark Timber Trust during the quarter as the US-based Real Estate Investment Trust (“REIT”) agreed to merge with PotlatchDeltic at prices that were more reflective of the private market value of its timberland holdings, and a reasonable premium to the Fund’s cost basis. The proceeds were largely used to establish a meaningful position in the common stock of D.R. Horton, which is now a core position in the Fund at 4.0% of assets.”


CatchMark Timber Trust, Inc. (NYSE:CTT) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, CatchMark Timber Trust, Inc. (NYSE:CTT) was held by 20 hedge fund portfolios at the end of the second quarter, which was 14 in the previous quarter.

We discussed CatchMark Timber Trust, Inc. (NYSE:CTT) in another article and shared Greenwood Investors LLC’s views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.