Third Avenue Management, a New York City-based investment firm, published its fourth-quarter 2025 investor letter for the “Third Avenue Small-Cap Value Fund. ” A copy of the letter is available for download here. In the quarter, the Fund returned 4.62%, outperforming the MSCI USA Small-Cap Value Index (the “Index”), which gained 3.13%. For the year 2025, the Fund delivered a 14.04% return, surpassing the 10.80% return of the index. The Fund primarily invests in publicly traded companies with boards of directors, sometimes controlled by individuals or families, and management teams that operate independently from the Fund. Reviewing 2025, the firm is pleased with the Fund’s performance, operational success, and shareholder value creation, and is optimistic about 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted Flagstar Bank, National Association (NYSE:FLG). Headquartered in Hicksville, New York, Flagstar Bank, National Association (NYSE:FLG) is a financial services company. On March 09, 2026, Flagstar Bank, National Association (NYSE:FLG) stock closed at $12.53 per share. One-month return of Flagstar Bank, National Association (NYSE:FLG) was -11.20%, and its shares gained 11.58% over the past 52 weeks. Flagstar Bank, National Association (NYSE:FLG) has a market capitalization of $5.212 billion.
Third Avenue Small-Cap Value Fund stated the following regarding Flagstar Bank, National Association (NYSE:FLG) in its fourth quarter 2025 investor letter:
Flagstar Bank, National Association (NYSE:FLG) is a regional bank headquartered in New York and founded in 1859. Over the past few years, Flagstar has been undergoing a highly visible transformation featuring the legacy Flagstar Bank’s acquisition of New York Community Bank (2022) and the absorption of former Signature Bank assets purchased from the FDIC during the depths of the 2023 regional banking crisis. Fund management has been following the progress of Flagstar since 2023, with increased interest following a series of 2024 developments including a greater than $1 billion capital infusion led by former Treasury Secretary Steve Mnuchin, through Liberty Strategic Capital, the sale of $5 billion of warehouse loans, divestment of its Mortgage Servicing division to Mr. Cooper and the appointment of Joe Otting as CEO and Chairman.
