Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Small-Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 7.18% compared to 8.97% for the MSCI USA Small-Cap Value Index (the “Index”) and 12.60% return for the Russell 2000 Value Index. Positive contributions from a wide range of businesses led the fund’s performance in the quarter. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its third-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks such as Boise Cascade Company (NYSE:BCC). Boise Cascade Company (NYSE:BCC) engages in the distribution and manufacturing of building materials and engineered wood products. The one-month return of Boise Cascade Company (NYSE:BCC) was -3.40%, and its shares lost 49.32% of their value over the last 52 weeks. On November 5, 2025, Boise Cascade Company (NYSE:BCC) stock closed at $71.38 per share, with a market capitalization of $2.644 billion.
Third Avenue Small-Cap Value Fund stated the following regarding Boise Cascade Company (NYSE:BCC) in its third quarter 2025 investor letter:
“During the quarter, the Fund initiated new positions in building materials distributor and manufacturer, Boise Cascade Company (NYSE:BCC).
Boise Cascade (“Boise”) is a leading manufacturer and distributor of building materials in the United States. The company operates through two segments, building materials distribution and wood products. On the distribution side, Boise distributes various products through the wholesale channel, including wood products, siding, composite decking, insulation, and roofing. On the wood products side, Boise primarily manufactures engineered wood products, such as laminated lumber veneer (LVL), I-joists, and plywood.
After a decade of respectable results, Boise’s profitability began to soften in 2024 while facing headwinds from slowing housing-related activity. While the near-term outlook remains challenged, Boise retains a strong financial position, which should provide the company with staying-power to participate in an eventual recovery in housing-related demand. Furthermore, the building material distribution industry has seen a substantial amount of consolidation activity in recent years, which could provide a backstop to valuation, as well as offer additional options for management to surface value transactionally.
In summary, we perceive Boise to be inexpensive on a “what is” basis with a good probability that, in the future, less depressed markets for U.S. homebuilding and renovation & remodeling could return the company to much higher levels of profitability. Meanwhile, a net cash balance sheet and a relative absence of liabilities offer the company a considerable amount of staying power. Finally, in our view, the attractiveness of Boise’s portfolios of distribution and manufacturing assets raises the probability that high levels of consolidation activity could one day involve Boise.”
Boise Cascade Company (NYSE:BCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held Boise Cascade Company (NYSE:BCC) at the end of the second quarter, compared to 36 in the previous quarter. In the third quarter of 2025, Boise Cascade Company (NYSE:BCC) reported consolidated sales of $1.7 billion, which reflects a 3% decrease compared to the third quarter of 2024. While we acknowledge the risk and potential of Boise Cascade Company (NYSE:BCC) 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 Boise Cascade Company (NYSE:BCC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Boise Cascade Company (NYSE:BCC) and shared the list of best lumber stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 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.
