Third Avenue Small-Cap Value Fund: Q2 2025 Letter Highlights

Third Avenue Small-Cap Value Fund has initiated new positions in Cantaloupe Inc. and Visteon Corp. Cantaloupe is a payment processing business, while Visteon is a technology company. The Fund focuses on niche industries and aims to generate value for its investors.

The Third Avenue Small-Cap Value Fund, managed by Third Avenue Management in New York City, has recently initiated new positions in Cantaloupe Inc. and Visteon Corp. These additions reflect the fund's focus on niche industries and its strategy to generate value for its investors.

Cantaloupe Inc.

Cantaloupe Inc. (NASDAQ: CTLP) is a digital payments and software services company. The fund highlighted Cantaloupe in its second-quarter 2025 investor letter, noting that the company's stock gained 64.64% over the last 52 weeks. Cantaloupe's shares closed at $11.08 per share on August 7, 2025, with a market capitalization of $812.021 million [2].

The fund's investment in Cantaloupe is based on its growth potential. Cantaloupe's revenue increased by 11% year-over-year in the first quarter, reaching $75.4 million [2]. However, the fund acknowledges that certain AI stocks may offer greater upside potential and carry less downside risk [2].

Visteon Corp

Visteon Corp is a technology company, but specific details about its operations were not provided in the available source materials. The fund's interest in Visteon indicates its focus on the technology sector, which has shown significant growth in recent years.

Fund Performance

The Third Avenue Small-Cap Value Fund returned 6.53% during the second quarter of 2025, outperforming the MSCI USA Small-Cap Value Index (-4.74%) and the Russell 2000 Value Index (4.96%) [1, 2]. This strong performance underscores the fund's ability to identify promising investments in niche industries.

Conclusion

The Third Avenue Small-Cap Value Fund's initiation of new positions in Cantaloupe Inc. and Visteon Corp demonstrates its commitment to investing in promising niche industries. While the fund acknowledges the potential of Cantaloupe and Visteon, it also highlights the need to consider other opportunities with greater upside potential and less downside risk.

References

[1] https://seekingalpha.com/article/4812068-third-avenue-small-cap-value-fund-why-cantaloupe-and-visteon-made-the-cut

[2] https://finance.yahoo.com/news/third-avenue-small-cap-value-121823815.html