Third Avenue Management’s Rewey Discusses His Value Approach

Robert “Chip” Rewey, who recently began to manage the Value and Small-Cap Value funds at Third Avenue Management, embraces an “intellectually honest investment style” by digging deep and avoiding the herd mentality. The Small-Cap fund is now beating 62% of its peers, up from 11%, and is doing slightly better than its benchmark Russell 2000 index.  Rewey says that “the market is narrowing on these high-priced internet and media companies that seem to be getting a valuation pass [that] has driven growth over value year-to-date.”  But, he says that over his funds’ three-to-four year horizon, those stocks “will at least […]

Whitman on What Wall Street Misses

Legendary value investor Martin Whitman says Wall Street has it all wrong when it comes to investing. Whitman tells WealthTrack’s Consuelo Mack that the Street overemphasizes earnings, short-term issues, macroeconomics, and the alleged efficiency of markets, while being oblivious to other key factors like creditworthiness. He says it’s a “dangerous game to invest in poorly capitalized firms. His “growth at dirt cheap prices” (GADCP) approach requires a firm to have a “super strong financial position”, he says. He also has three other key requirements: The security must be trading at “very, very steep discounts” to readily attainable asset value; must […]

For Whitman, Value Still Rules

Value investing legend Marty Whitman built his reputation by buying down-and-out stocks. And today, he says he still believes that’s the way to go. “You’re trying to figure out what the masses think are going to happen to the securities’ prices. Stock markets can be capricious,” Whitman tells Forbes. By investing in out-of-favor sectors of the market — and bargain-priced debt of companies going through bankruptcy restructuring — “you can buy things at 10 or 20 cents on the dollar,” he says. Whitman also talks about his criteria for picking stocks. He wants to see companies with strong financial positions […]

Cooperman, Gabelli, Whitman Talk Value

The latest issue of Columbia Business School’s Graham & Doddsville newsletter features interviews with three top investors, Leon Cooperman, Mario Gabelli, and Marty Whitman. (Tip of the cap to for highlighting the newsletter, which can be downloaded via this link.) In the wide-ranging interviews, Cooperman, Gabelli, and Whitman talk extensively about their own career paths, their broader investment strategies, and their take on the current market. Cooperman, for example, offers his take on why the traditional sense of “value” is too narrow. “What you want is some combination of financial statistics that yell, ‘Buy me,’” he says. “It could […]

Whitman Finding Lots of Bargains

Top value manager Marty Whitman says he’s finding a lot of U.S. stocks trading at attractive values right now, particularly in the high-tech arena. “We have a three-pronged approach to our investments in common stocks,” Whitman tells Barron’s in a recent interview. “One, we want the company to have a super strong financial position. Two, we buy at big discounts to readily ascertainable net asset value. And, three, we like to restrict investments to companies that we think, over the next three to seven years, will grow their net asset value at least 10%, compounded annually. An awful lot of […]