Third Avenue Management: “BrightSphere (BSIG) Has Been a Fruitful Special-Situation Investment Experience”

Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Third Avenue Small-Cap Value Fund (the “Fund”) declined 0.44% during the first quarter of 2022 versus a decline of 2.40% for the Fund’s most relevant benchmark, the Russell 2000 Value Index1 (the “Index”). Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Third Avenue Management Small-Cap Value Fund mentioned BrightSphere Investment Group Inc. (NYSE:BSIG) and explained its insights for the company. Founded in 1980, BrightSphere Investment Group Inc. (NYSE:BSIG) is a Boston, Massachusetts-based global, diversified asset management company with a $752.2 million market capitalization. BrightSphere Investment Group Inc. (NYSE:BSIG) delivered a -29.06% return since the beginning of the year, while its 12-month returns are down by -20.73%. The stock closed at $18.16 per share on June 16, 2022.

Here is what Third Avenue Management Small-Cap Value Fund has to say about BrightSphere Investment Group Inc. (NYSE:BSIG) in its Q1 2022 investor letter:

BrightSphere has been a fruitful special-situation investment experience for Fund shareholders. The position was initiated in early 2021 prior to a series of asset sales which significantly boosted the cash position of the company. A good portion of the cash was used to finance a partial tender offer for 40% of the shares outstanding at a significant premium to the Fund’s cost basis. The Fund fully participated in the tender offer which closed in December 2021. Post the tender-offer, BrightSphere’s share price declined irrationally. After reviewing the financials post tender-offer, the company was trading at a significant discount to our updated NAV estimate providing us an opportunity to scale back up the position. BrightSphere management remains open-minded to future resource conversion opportunities which provided added incentive to increase the position size.”

10 best cheap stocks to invest in February 2021

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Our calculations show that BrightSphere Investment Group Inc. (NYSE:BSIG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. BrightSphere Investment Group Inc. (NYSE:BSIG) was in 29 hedge fund portfolios at the end of the first quarter of 2022, compared to 32 funds in the previous quarter. BrightSphere Investment Group Inc. (NYSE:BSIG) delivered a -30.15% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on BrightSphere Investment Group Inc. (NYSE:BSIG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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