Third Avenue Management Expects Positive Performance from Vornado Realty (VNO)

Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 10.94% was recorded by the fund for the 3rd Quarter of 2020, ahead of its FTSE EPRA NAREIT Developed benchmark that returned 10.32%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.

Third Avenue Management in their Q3 2020 Investor Letter said that they were able to distinguish a value in  Vornado Realty Trust (NYSE: VNO) and initiated a position in the company. Vornado Realty Trust is a real estate investment trust that currently has a $7 billion market cap. For the past 3 months, VNO delivered a 13.38% return and settled at $38.56 per share at the closing of January 15th.

Here is what Third Avenue Management has to say about Vornado Realty Trust in their Investor Letter:

“Third Avenue has long championed enterprises with sound business practices run by aligned control groups that exhibit strong stewardship. Within Third Avenue’s real estate strategy, this oftentimes leads the Fund to “pass” on investments in companies with uncertain environmental liabilities, business models that could be deemed predatory, and corporate governance structures that are stacked against key
stakeholders. Consequently, the select-set of real estate and real estate-related business that make it into the Third Avenue Real Estate Value Fund represent some of the true industry leaders in respect to their ESG practices, including Vornado Realty Trust (a New York City-centric owner of office properties) that has more than 26 million square feet of LEED-certified properties (Leadership in Energy and Environmental Design) and is a 10-time recipient of NAREIT’s ‘Leader in the Light Award'”.

REIT Stocks Northstar Realty Finance NRF

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Last December 2020, we published an article telling that Vornado Realty Trust (NYSE: VNO) was in 20 hedge funds’ portfolio. Its all time high statistics is 37. Vornado Realty Trust delivered a 3.27% return YTD.

As of September 2020, Third Avenue Management had a 954K share position in VNO that amounted to $32 million. This made Third Avenue Management a part of the top 2 hedge funds that holds most of VNO’s stake, just behind Redwood Capital Management with $47 million worth of VNO shares. However, our calculations showed that Vornado Realty Trust (NYSE: VNO) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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