Forget Junk, Many 3rd Ave Holdings are Trash – The Street
December 17, 2015 \
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Just how bad are the assets in Third Avenue Management’s Focused Credit Fund? They are bad enough that one has to wonder if it is even fair to call them assets. FULL ARTICLE
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5 Comments on "Forget Junk, Many 3rd Ave Holdings are Trash – The Street"
To be fair, the fund’s prospectus states the fund might look to make investments in bankrupt companies and that those holdings could be difficult to sell. Also, the fund is a high-yield and distressed fund, so by definition the holdings are not going to be pristine. Even so, this fund took “slumming it” to new levels.
This is really a non-story as it is merely the risk-reward pay-off demonstrating high risk means that you can lose money
If there is a story, and I’m sure there is, it would be around the marketing of the fund and the transparency used to explain its portfolio construction and management. Certainly from a regulatory perspective its disclosure appears fine.
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