Third Avenue Management's Strategic Moves: Harley-Davidson Inc. Takes Center Stage

This article first appeared on GuruFocus.

Exploring the Latest 13F Filing and Key Investment Adjustments

Introduction to Third Avenue Management (Trades, Portfolio)

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Third Avenue Management (Trades, Portfolio) recently submitted its 13F filing for the first quarter of 2026, offering a glimpse into its strategic investment decisions. Founded by the legendary value investor Martin Whitman, Third Avenue Management (Trades, Portfolio) is renowned for its deep value and distressed investing approach. The firm manages mutual funds, separate accounts, and hedge funds, and has been in partnership with Affiliated Managers Group since 2002. This collaboration has enabled Third Avenue to extend ownership rights to senior professionals, ensuring a transparent succession plan. The firm operates across four core strategies: Value, Small-Cap, Real Estate, and International Real Estate, available through various investment vehicles. For over 25 years, Third Avenue has maintained a fundamental, bottom-up approach, focusing on high-conviction ideas and maximizing risk-adjusted returns across diverse market capitalizations and geographies.Third Avenue Management's Strategic Moves: Harley-Davidson Inc. Takes Center Stage

Summary of New Buy

Third Avenue Management (Trades, Portfolio) added a total of six stocks to its portfolio, with the most significant addition being Harley-Davidson Inc. (NYSE:HOG). The firm acquired 1,462,670 shares, which now account for 4.8% of the portfolio, with a total value of $29.58 million. The second-largest addition was Robert Half Inc. (NYSE:RHI), consisting of 903,905 shares, representing approximately 3.73% of the portfolio, with a total value of $22.96 million. The third-largest addition was Brookdale Senior Living Inc. (NYSE:BKD), with 463,664 shares, accounting for 1.03% of the portfolio and a total value of $6.34 million.

Key Position Increases

Third Avenue Management (Trades, Portfolio) also increased its stakes in a total of ten stocks. The most notable increase was in Boise Cascade Co. (NYSE:BCC), with an additional 132,022 shares, bringing the total to 562,021 shares. This adjustment represents a significant 30.7% increase in share count, impacting the portfolio by 1.63%, with a total value of $42.63 million. The second-largest increase was in FirstService Corp. (NASDAQ:FSV), with an additional 31,738 shares, bringing the total to 50,452. This adjustment represents a significant 169.59% increase in share count, with a total value of $7.01 million.

Summary of Sold Out

Third Avenue Management (Trades, Portfolio) completely exited four holdings in the first quarter of 2026. The firm sold all 337,193 shares of Deutsche Bank AG (NYSE:DB), resulting in a -2.36% impact on the portfolio. Additionally, it liquidated all 188,340 shares of Rayonier Inc. (NYSE:RYN), causing a -0.74% impact on the portfolio.

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Key Position Reduces

Third Avenue Management (Trades, Portfolio) also reduced its position in 26 stocks. The most significant changes include a reduction in Warrior Met Coal Inc. (NYSE:HCC) by 219,318 shares, resulting in a -37.6% decrease in shares and a -3.52% impact on the portfolio. The stock traded at an average price of $90.06 during the quarter and has returned -1.21% over the past three months and -3.33% year-to-date. Additionally, the firm reduced its position in Kaiser Aluminum Corp. (NASDAQ:KALU) by 55,482 shares, resulting in a -65% reduction in shares and a -1.16% impact on the portfolio. The stock traded at an average price of $126.61 during the quarter and has returned 28.38% over the past three months and 57.87% year-to-date.

Portfolio Overview

As of the first quarter of 2026, Third Avenue Management (Trades, Portfolio)'s portfolio included 53 stocks. The top holdings were 12.49% in Tidewater Inc. (NYSE:TDW), 8.09% in Valaris Ltd. (NYSE:VAL), 6.92% in Boise Cascade Co. (NYSE:BCC), 5.5% in Warrior Met Coal Inc. (NYSE:HCC), and 4.8% in Harley-Davidson Inc. (NYSE:HOG).Third Avenue Management's Strategic Moves: Harley-Davidson Inc. Takes Center Stage

The holdings are mainly concentrated in nine of the eleven industries: Energy, Real Estate, Financial Services, Basic Materials, Consumer Cyclical, Industrials, Healthcare, Technology, and Communication Services.Third Avenue Management's Strategic Moves: Harley-Davidson Inc. Takes Center Stage

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