Third Avenue Management, a disciplined, value-oriented asset manager and investment fund, published its ‘Small-Cap Value Fund’ third-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 11.41% was recorded by the fund for the 3rd Quarter of 2020, below its Russell 2000 Value benchmark that returned 18.91%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Third Avenue Management in their Small-Cap Value Fund’s Q3 2020 Investor Letter said that they eliminated their positions in Seacor Holdings Inc. (NYSE: CKH) because of unprecedented actions in the offshore markets. Seacor Holdings Inc is a marine services business company that currently has a $855 million market cap. For the past 3 months, CKH delivered a 34.36% return and settled at $42 per share at the closing of January 15th.
Here is what Third Avenue Management has to say about Seacor Holdings Inc. in their Investor Letter:
“The SEACOR Marine (“SEACOR”) sale was painful, resulting in a material realized loss, but we believe it was necessary as the thesis on SEACOR was no longer intact. SEACOR’s endmarkets (offshore oil services) have been hit hard not only by COVID-19, but also the oil price war between Saudi Arabia and
Russia. Impressively, in other down cycles, SEACOR preserved shareholder capital through creative financing and aggressive asset trading. However, as we assessed the current cycle, the probability of SEACOR surviving this crisis without raising expensive capital seems low. We are seeing unprecedented actions in the offshore markets and we feel SEACOR’s ability to preserve its balance sheet this time will be more difficult.”
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Video: Top 5 Stocks Among Hedge Funds
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