As Brookdale Senior Living, Inc. (NYSE:BKD)‘s stock dropped by over 29% during the fourth quarter, it was the top detractor in Third Avenue’s equity portfolio. The fund held 2.02 million shares worth $25.14 million at the end of December, down by 15% over the quarter. Its stock plunged mainly on the back of the company posting weaker-than-expected third-quarter results and cutting guidance. However, Third Avenue remains bullish on the company as it sees the real estate value of the company higher than its enterprise value. Earlier this year there have been reports that first Blackstone and later Ventas were interested in acquiring Brookdale Senior Living, Inc. (NYSE:BKD). At the end of 2016, 32 funds tracked by us held around 35% of Brookdale Senior Living, Inc. (NYSE:BKD)’s outstanding stock, down by three funds over the quarter.
Cerner Corporation (NASDAQ:CERN) represented a new position in Third Avenue’s equity portfolio, as the fund disclosed ownership of 408,707 shares worth $19.36 million in its latest 13F filing. The fund acquired shares as it expects the healthcare technology industry to expand following an increase of spending by hospitals that are in need of IT solutions. As more hospitals require electronic systems to hold records and monitor outcomes, Cerner Corporation (NASDAQ:CERN) should benefit from its leading position in the market, as well as from industry consolidation.
“While uncertainty remains regarding the ultimate resolution of the ACA, we believe the benefit of increased efficiencies that enhanced IT systems provide, along with increasing use cases, e.g., population health, will continue to bode well for Cerner’s business, enabling the company to grow and compound value over the longer-term,” Third Avenue said.
A total of 24 funds from our database amassed around $1.03 billion worth of Cerner Corporation (NASDAQ:CERN)’s stock heading into 2017.
In Lennar Corporation (NYSE:LEN), the fund held 2.95 million shares at the end of December, up by 1.97 million shares over the quarter; the value of the position was worth $126.73 million. The fund praised the company’s strong balance sheet and its efforts to develop its land bank into saleable housing units, among other things.
“Perhaps Lennar’s most exciting aspect is the strength of the investment case and current undervaluation taken without the likely strong tailwind of an improving housing cycle,” the fund added.
Though the number of investors tracked by us long Lennar Corporation (NYSE:LEN) remained unchanged at 48 during the fourth quarter, the total value of their holdings surged to $1.56 billion from $1.13 billion and represented around 16% of the company’s stock.
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