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Portfolio Management

At Third Avenue, we believe that diversification is a poor surrogate for knowledge, price consciousness and control. Our funds are fairly concentrated. No attempt is made to mirror a benchmark, either by composition or weighting. In order to minimize portfolio risk, industry and individual security allocation will not exceed 25% by prospectus. In practice, however, allocations to individual securities will not exceed 10% (at cost) and 15% (at market). A 10% cash position will typically indicate a fully invested fund. This allocation will allow us to take advantage of opportunities as they may present themselves in the future.

Portfolio construction decisions are the responsibility of the portfolio manager. Portfolio monitoring is ongoing.