Third Avenue Small-Cap Value Fund returned 12.85% in Q2, beating the MSCI Small Cap Value Index by 24 basis points but lagging the Russell 2000 Value by 434 bps.
Third Avenue Management's Small-Cap Value Fund (TASCX) returned 12.85% in the second quarter, slightly ahead of the MSCI USA Small Cap Value Index's 12.61% gain but trailing the Russell 2000 Value Index's 17.19% surge, the fund's commentary showed.
Portfolio managers Matthew Fine and Jason Wolf, who have 26 and 22 years of investment experience respectively, lead the fund. The commentary did not disclose specific portfolio changes or top holdings for the period.
The fund's modest outperformance relative to its primary benchmark suggests sector or stock selection added marginal value, though the wide gap versus the Russell 2000 Value Index highlights the impact of index composition differences. The Russell index includes smaller names and a higher weight to more cyclical sectors, which benefited from the quarter's risk-on rotation.
Third Avenue's small-cap value strategy focuses on businesses with strong balance sheets and measurable catalysts, according to the firm's stated approach. The Q2 results reflect a period of broad small-cap gains driven by optimism around lower interest rates and resilient economic data.
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