Third Avenue Funds aims for extra credit

Third Avenue Management LLC of New York today launched a mutual fund that is able to invest in a mix of credits, including bank loans, and high-yield and distressed debt.
AUG 31, 2009
Third Avenue Management LLC of New York today launched a mutual fund that is able to invest in a mix of credits, including bank loans, and high-yield and distressed debt. The Third Avenue Focused Credit Fund (TFCVX) is also able to invest in debtor-in-possession financing, whereby financing is provided to companies exiting bankruptcy protection. There aren't many funds that give investors access to such a mix of credits, said J. Michael Martin, president of Financial Advantage Inc., a Columbia, Md.-based investment advisory firm with $250 million in assets under management. That and the fact that it comes from Third Avenue Management — founded by legendary value investor Marty Whitman — also makes it attractive, Mr. Martin said. But ultimately, the fund has appeal because it can invest in distressed debt, Mr. Martin added. “I'm very interested in this because of the environment we're in,” he said. Economic circumstances, he added, have created a plethora of opportunities in distressed debt. Jeff Gary, manager of the new Third Avenue Fund, concurs that the current market conditions present an attractive environment for investing in distressed debt. But he added that it would be a mistake to assume that's where the only opportunities can be found. For example, right now, the fund is invested more in bank-loan- and capital-infusion-financing deals, plus “select” distressed securities and high-yield bonds, Mr. Martin said. The junk bond market has become particularly tricky because the dramatic run-up in bond prices has made finding value in that market more difficult, he said. “But even with the run-up that has occurred since March, the market is still trading … at a pretty decent discount,” said David Barse, chief executive of Third Avenue Management.

Latest News

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

Aspen Standard Wealth buys $1B Louisiana RIA Cullen Investment Group
Aspen Standard Wealth buys $1B Louisiana RIA Cullen Investment Group

Cullen marks the fourth firm the New York-based RIA aggregator has bought in 2026 as deal volume heads for a record year.

Strategy before technology: Establishing the foundation for measurable AI value
Strategy before technology: Establishing the foundation for measurable AI value

The quality of AI ROI measurement depends on pre-deployment decisions around business outcomes, leadership alignment, and establishing trusted information, among other factors.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor