The concluding months of 2025 marked a period of strong and predominantly favorable resource transformation initiatives. The fund's investment in Harbour, initiated in mid-2024, experienced a dynamic phase. Concurrently, Comerica, a long-held asset within the fund, faced demands from activist investors pushing for a sale to enhance shareholder returns.
Resource Conversion: A Year of Dynamic Shifts and Value Enhancement
In the final quarter and throughout the entirety of 2025, the landscape of resource conversion was exceptionally active, yielding largely positive results for Third Avenue Management. A notable highlight was the fund's involvement with Harbour. Acquired in the summer of 2024, Harbour experienced a particularly eventful holding period, characterized by significant operational and strategic developments. Simultaneously, Comerica, a venerable component of the fund's portfolio, became the focus of intense activist shareholder engagement during the quarter. These activists vigorously advocated for a sale of the institution, aiming to unlock and maximize inherent shareholder value. This period underscores a strategic approach to portfolio management, where proactive engagement and responsiveness to market dynamics are paramount.
The events of 2025 serve as a compelling reminder of the constant flux in investment landscapes and the critical role of agile, value-oriented management. The proactive stance towards resource conversion and the responsiveness to activist pressure illustrate a commitment to optimizing portfolio performance and shareholder returns. This dynamic approach ensures that investments are not merely held, but actively managed to navigate challenges and capitalize on opportunities, ultimately fostering long-term growth and stability.