Third Avenue Management, the investment adviser to the Third Avenue Funds, has launched the Third Avenue Focused Credit Fund.
Third Avenue Management, the investment adviser to the Third Avenue Funds, has launched the Third Avenue Focused Credit Fund.
The new fund seeks long-term total return from capital appreciation and interest income by investing in the team’s highest-conviction ideas across the credit spectrum, including high-yield bonds, bank loans and distressed securities.
David Barse (pictured), chief executive officer of Third Avenue Management, says: "The current market environment provides attractive opportunities for experienced credit pickers like Third Avenue Management to generate meaningful returns. Third Avenue Focused Credit Fund is a natural extension of our investment heritage and a complement to our existing product offerings. On June 1, we announced the hiring of portfolio manager Jeff Gary, and senior research analyst Thomas Lapointe, who will lead the effort of managing the new fund."
Gary will be responsible for portfolio construction and for identifying credit opportunities. He has more than 20 years of investment experience in high-yield, bank loan and distressed investment strategies, including the last 12 years as a senior portfolio manager. Prior to joining Third Avenue, Gary was at BlackRock Financial, which he joined in 2003 as the portfolio manager and head of the high-yield and distressed investment team.
Lapointe will focus on identifying and researching opportunities in high-yield and bank loan investments. Lapointe has over 17 years of investment experience and was previously co-head of high yield Investments for Columbia Management.
Gary says: "Third Avenue’s style emphasizes credit selection, total return and a deep value approach. Our opportunistic mandate allows us to invest in a wide range of credit securities – including bank loans, high-yield and convertible securities – that have the best risk-adjusted return potential which distinguishes the fund from typical high-yield funds. Very few funds have the flexibility and expertise necessary to capitalize on opportunities, including distressed investments, throughout many different periods of economic uncertainty and high levels of default."
The fund will offer two classes of shares: Third Avenue Focused Credit Fund Investor Class and Third Avenue Focused Credit Fund Institutional Class. It will be available through the major no transaction fee programmes and certain broker-dealers, as well as directly through Third Avenue Funds.
