Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Small-Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 6.53% compared to -4.74% for the MSCI USA Small-Cap Value Index (the “Index”) and 4.96% return for the Russell 2000 Value Index. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its second-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks such as Visteon Corporation (NASDAQ:VC). Headquartered in Van Buren, Michigan, Visteon Corporation (NASDAQ:VC) is an automotive technology company. On August 7, 2025, Visteon Corporation (NASDAQ:VC) stock closed at $113.70 per share. One-month return of Visteon Corporation (NASDAQ:VC) was 2.68%, and its shares gained 15.73% of their value over the last 52 weeks. Visteon Corporation (NASDAQ:VC) has a market capitalization of $3.101 billion.
Third Avenue Small-Cap Value Fund stated the following regarding Visteon Corporation (NASDAQ:VC) in its second quarter 2025 investor letter:
“During the second quarter, the Fund initiated two new positions in niche technology-related industries. Cantaloupe Inc. is a payment processing business and Visteon Corporation (NASDAQ:VC) is an automotive technology company.
Visteon Corporation (“Visteon”), is an automotive technology company that designs and manufactures automobile cockpit electronics, including instrument clusters, displays and onboard artificial intelligence-based voice assistants. The company has been a standout for growth in the auto supply industry as it benefits from increasing uptake of technology enabled functionality embedded within digital clusters, cockpit domain controllers, and advanced displays, which appear to still have strong sectoral tailwinds.
At the time of purchase, heavily influenced by acute tariff related fears surrounding the automotive supply chain, Visteon’s valuation assumed little or no growth for the company and appeared to factor in a substantial slowdown in the automotive industry. While tariff implications continue to be evaluated, Visteon’s history of cash flow generation, net cash balance sheet, and available liquidity should provide significant staying power and financial flexibility if a difficult environment for the auto sector does develop.
An attraction to Visteon, in addition to the company’s balance sheet strength and low valuation, is our perception that Visteon can continue to grow incremental volumes, enhancing scale, supporting positive operating leverage benefits, and increasing margins. Further, the company has refined its capital allocation policy over decades of operation and shown discipline in redeploying free cash flow, including towards substantial share buybacks and consolidating acquisitions.”
A technician connecting an automotive display in a modern car.
Visteon Corporation (NASDAQ:VC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Visteon Corporation (NASDAQ:VC) at the end of the first quarter, which was 27 in the previous quarter. In the second quarter of 2025, Visteon Corporation (NASDAQ:VC) reported sales of $969 million, marking a 4% increase from the first quarter of 2025. While we acknowledge the risk and potential of Visteon Corporation (NASDAQ:VC) 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 Visteon Corporation (NASDAQ:VC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In addition, please check out our hedge fund investor letters Q2 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.
