Third Avenue Management Portfolio Analysis (December 31, 2021)

Famous superinvestor, Third Avenue Management, revealed in a recent regulatory filing his newest positions.  In Third Avenue Management portfolio 2021 analysis, we will go into more detail about top 5 stocks this superinvestor had as of December 31, 2021.

Avenue manages his investments via his fund, Third Avenue Management, which holds about $0.8 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Third Avenue Management’s Q4 portfolio include Five Point Holdings Llc – Cl A, Warrior Met Coal Inc., Lennar Corp – Class B, Brookfield Asset Mgmt. Cl A and Prologis Inc.. In addition to others mentioned in detail below.

We used the Q4 portfolio of Third Avenue Management’s Third Avenue Management to select his top 5 value stocks. We ranked the securities according to Avenue’s stake value in each holding.

Summary

• Third Avenue Management’s top 5 securities make up 31.1% of the entire portfolio.
• Third Avenue Management owns position in 59 holdings, managing approximately $0.8 billion.
• Five Point Holdings Llc – Cl A, Avenue’s largest holding, makes up 7.5% of the total portfolio.

Five Point Holdings Llc – Cl A (FPH)

Third Avenue Management’s stake value: $57.1 Million

Percentage of Third Avenue Management’s 13F Portfolio: 7.5%

Five Point Holdings LLC does business in Commercial and Institutional Building Construction industry and has 160 employees.

As of February 13, 2022 Five Point Holdings Llc – Cl A had a market cap of $927.557M Million. Analysts predicted 1 year target price of $12.0 that exceeds the current price of $6.28 for 91.1%. If we look at revenue, Five Point Holdings Llc – Cl A generated low $153 million revenue in 2020, falling by -16.8% in comparison to 2019 when it was $184 million. Net income dropped according to the latest fillings, sinking in 2020 by around -104.7% totalling $-0.428 million.

Five Point, headquartered in Irvine, California, designs and develops large mixed-use, master-planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space.

Warrior Met Coal Inc. (HCC)

Third Avenue Management’s stake value: $48.0 Million

Percentage of Third Avenue Management’s 13F Portfolio: 6.3%

Warrior Met Coal Inc does business in Bituminous Coal Underground Mining industry, which is Mining, Quarrying, and Oil and Gas Extraction sector and has 1401 employees. Current CEO is Walter Scheller.

As of February 13, 2022 Warrior Met Coal Inc. had a market cap of $1.577 Million. Analysts predicted 1 year target price of $30.6 that exceeds the current price of $29.74 for 2.9%. Warrior Met Coal Inc. generated scarce amount compared to previous financial period, $782 million in 2020 sinking by -38.3% in contrast to 2019 when it was $1268 million. Net income dropped according to the latest fillings, sinking in 2020 by around -111.9% totalling $-35.761 million. Lastly, the profit margin, according to the last 10-F stands at -4.6%, has significantly deteriorated in comparison to the company’s previous years of operation.

Warrior is a U.S.-based, environmentally and socially minded supplier to the global steel industry. It is dedicated entirely to mining non-thermal metallurgical (met) coal used as a critical component of steel production by metal manufacturers in Europe, South America and Asia.

Lennar Corp – Class B (LEN)

Third Avenue Management’s stake value: $45.7 Million

Percentage of Third Avenue Management’s 13F Portfolio: 6.0%

Lennar Corp. does business in Construction sector and has 9495 employees. Current CEO is Richard Beckwitt.

As of February 13, 2022 Lennar Corp – Class B had a market cap of $26.803 Million. Analysts predicted 1 year target price of $128.59 that exceeds the current price of $92.85 for 38.5%. Trailing twelve months P/E ratio is currently 6.42 making it much cheaper stock than the rest of the S&P500 index. If we look at revenue, Lennar Corp – Class B generated high $27130 million revenue in 2021 which is a considerable increase of 20.6% compared to 2020 when it was $22488 million. Net income surged according to the latest fillings, jumping in 2021 by around 79.7% adding up to total of $4430.111 million. Further, in 2021, the net profit margin, was at 16.3%, shows an improvement compared the company’s previous years of operation.

Lennar Corporation, founded in 1954, is one of the nation’s leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name.

Brookfield Asset Mgmt. Cl A (BAM)

Third Avenue Management’s stake value: $43.0 Million

Percentage of Third Avenue Management’s 13F Portfolio: 5.7%

Brookfield Asset Management Inc. does business in Finance and Insurance sector and has None employees. Current CEO is J. Bruce Flatt.

As of February 13, 2022 Brookfield Asset Mgmt. Cl A had a market cap of $91.19 Million. Analysts predicted 1 year target price of $63.38 that exceeds the current price of $59.99 for 5.7%. Trailing twelve months P/E ratio is currently 24.29 making it a slightly cheaper stock than the rest of the S&P500 index. If we look at revenue, Brookfield Asset Mgmt. Cl A generated high $78182 million revenue in 2021 which is a considerable increase of 24.7% compared to 2020 when it was $62673 million. Net income dropped according to the latest fillings, sinking in 2021 by around -3059.7% totalling $3966.0 million. Further, in 2021, the net profit margin, was at 5.1%, shows an improvement compared the company’s previous years of operation.

Brookfield Asset Management Inc. is a leading global alternative asset manager with approximately US$600 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit.

Prologis Inc. (PLD)

Third Avenue Management’s stake value: $42.4 Million

Percentage of Third Avenue Management’s 13F Portfolio: 5.6%

Prologis Inc does business in Finance and Insurance sector and has 1945 employees. Current CEO is Hamid Moghadam.

As of February 13, 2022 Prologis Inc. had a market cap of $108.269 Million. Analysts predicted 1 year target price of $174.94 that exceeds the current price of $149.35 for 17.1%. Trailing twelve months P/E ratio is currently 37.11 making it a slightly more expensive stock than the rest of the S&P500 index. Regarding revenue, Prologis Inc. generated $5163 million revenue in 2021, mildly increasing of 9.0% in contrast to 2020 when it was $4736 million. Net income surged according to the latest fillings, jumping in 2021 by around 98.4% adding up to total of $2939.723 million. Further, in 2021, the net profit margin, was at 56.9%, shows an improvement compared the company’s previous years of operation.

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 13, 2022.

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Five Point Holdings Llc – Cl A (FPH)	7.5%	927.557M	nan	0	-104.7%	-0.3%
Warrior Met Coal Inc. (HCC)	6.3%	1.577B	nan	-35	-111.9%	-4.6%
Lennar Corp – Class B (LEN)	6.0%	26.803B	6.4	4430	79.7%	16.3%
Brookfield Asset Mgmt. Cl A (BAM)	5.7%	91.19B	24.3	3966	-3059.7%	5.1%
Prologis Inc. (PLD)	5.6%	108.269B	37.1	2939	98.4%	56.9%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

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