Third Avenue Funds
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Third Avenue Real Estate Value Fund
Third Avenue Real Estate Value Fund seeks long-term capital appreciation by investing in the securities of well-financed, well-managed companies in the real estate or related industries believed to be priced below their intrinsic values. Under normal conditions, the Fund intends to invest at least 80% of its assets in equity and debt securities of companies in the real estate industry or related industries or in companies which own significant real estate assets at the time of investment.
Examples of such companies include, but are not limited to:
- Real estate development companies (including commercial/industrial developers and homebuilders);
- Real estate investment trusts (REITs);
- Hotel and hotel management companies;
- Real estate brokerage companies and/or management companies;
- Financial institutions that make or service mortgage loans;
- Title insurance companies;
- Lumber, paper, forest product, timber, mining and oil companies;
- Companies with significant real estate holdings such as hotel companies, supermarkets, restaurant chains and retail chains; and manufacturers or distributors of construction materials and/or building supplies.
The Fund tends to be substantially different from most real estate mutual funds that concentrate their investments in REITs. Many REIT funds have diversified portfolios that are based on top-down allocations using economic trends, capital market fundamentals and property type fundamentals. The Third Avenue Real Estate Value Fund will focus on undervalued realty stocks using bottom-up, fundamental analysis and will invest primarily in those companies that are expected to generate long-term capital appreciation (as opposed to current income). The Fund expects that its portfolio will be concentrated in fewer stocks and in companies with high quality assets, strong financial positions and highly motivated and skilled management.
Third Avenue Real Estate Value Fund recognizes that the real estate industry is subject to boom and bust cycles. By selecting undervalued stocks, The Fund believes its investments will be less susceptible to the inevitable downturns in the industry. Additionally, by focusing its efforts on bottom-up analysis, Third Avenue Real Estate Value Fund believes it will be in a position to make excellent long-term value investments in both up and down industry cycles.
Portfolio Composition
| Top 10 Holdings - By Issuer (as of August 31, 2008) | |
| Issuer | % of Net Assets |
| Forest City Enterprises, Inc. | 9.79% |
| The St. Joe Company | 7.69% |
| Brookfield Asset Management, Inc. | 7.60% |
| British Land Co. PLC | 5.13% |
| Henderson Land Development Co., Ltd. | 4.09% |
| Hammerson PLC | 4.04% |
| Vornado Realty Trust | 3.91% |
| Wheelock & Co., Ltd. | 3.84% |
| Prologis | 3.82% |
| Derwent London PLC | 3.52% |
| Top 5 Industry Categories (as of August 31, 2008) | |
| Non-U.S. Real Estate Operating Companies | 32.15% |
| U.S. Real Estate Operating Companies | 21.41% |
| U.S. Real Estate Investment Trust | 14.78% |
| Non-U.S. Real Estate Investment Trust | 12.69% |
| Homebuilders | 0.65% |
| Cash & Equivalent | 17.52% |
Performance
| Third Avenue Real Estate Value Fund Average Annual Returns* |
|
| As of 9/30/08 | Since Inception** | 13.29% |
| Ten Year | 13.35% |
| Five Year | 9.48% |
| Three Year | -0.49% |
| Third Avenue Real Estate Value Fund Total Returns* |
|
| As of 9/30/08 | |
| Since Inception** | 249.89% |
| Ten Year | 250.24% |
| Five Year | 57.25% |
| Three Year | -1.45% |
| One Year | -25.73% |
| Year-To-Date | -20.09% |
| One Month | -5.76% |
If you should have any questions, please call 1-800-443-1021. Past performance is no guarantee of future results. Current performance may be lower or higher than performance quoted.
*Includes reinvestment of dividends, interest and capital gains.
**Inception date for Third Avenue Real Estate Value Fund is 9/17/98.
Real estate investments may be subject to special risks, including risks related to general and local economic conditions, and changes in real estate values that may have negative effects on issuers related to the real estate industry. The fund's investments in small and medium capitalization stocks may experience more volatility than larger capitalization stocks. These and other risks are described more fully in the fund's prospectus.
The Third Avenue Real Estate Fund is offered by prospectus only. Prospectuses contain more complete information on advisory fees, distribution charges, and other expenses and should be read carefully before investing or sending money. Please read the prospectus carefully before you send money. Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. M.J. Whitman LLC Distributor.
This material is intended for United States residents, and not for use in any jurisdiction where the sales of these securities are not permitted.
| FUND INFORMATION | |
| Portfolio Manager: | Michael Winer |
| Ticker: | TAREX |
| CUSIP: | 884116401 |
| Inception Date: | September 17, 1998 |
| Blue Sky: | All States |
| Sales Charge: | No load |
| Expense Ratio: | 1.13% (as of April 30, 2008) |
| Early Redemption Fee: | 1.00% * |
| Minimum Initial Investment: | $10,000 ($2,500 for IRAs) |
| Subsequent Investments: | $1,000 ($200 Automatic Monthly Investment Plan, $200 IRAs) |
| Total Net Assets: | $2.0 billion (as of August 31, 2008) |
| NAV/share: | $23.60 (as of August 31, 2008) |
| Number of Equity Holdings: | 32 (as of August 31, 2008) |
| Median Market Cap: | $1.1 billion (as of August 31, 2008) |
| Portfolio Turnover: | 12.2% (as of October 31, 2007) |
*This fee is charged only on redemptions or exchanges of shares held less than one year.
Click here for Third Avenue Funds Prospectus.
Click here for Third Avenue Real Estate Value Fund's most recent Shareholder Letter.
Click here for Third Avenue Real Estate Fund's most recent Proxy Vote Record.
Click Here for Third Avenue Funds Privacy & Selective Disclosure Policy.
Distributor of Third Avenue Funds: M.J. WHITMAN LLC, member FINRA/SIPC.