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By Jason Stipp | 06-28-2010 05:14 PM

Third Avenue Real Estate Value Puts Money to Work

Third Avenue's Jason Wolf says recent market disruptions have allowed the fund to take startup positions in Continental Europe for the first time and have made U.S. homebuilders more attractive.

Jason Stipp: I'm Jason Stipp for Morningstar. We're reporting from the 2010 Morningstar Investment Conference. I'm here with Jason Wolf from Third Avenue Real Estate Value. He is going to tell us a little bit about the fund's positioning today, and where they are finding some opportunity. Thanks for joining me, Jason.

Jason Wolf: Thanks, Jason. It's good to be here.

Stipp: First question for you. Our analyst wrote about your fund in February and said that you folks have taken some chips off the table at that time. Obviously the market since February has been a bit volatile, and I'm just wondering how you'd characterize the positioning of the portfolio today?

Wolf: Well, March 2009 to essentially April 2010 equity markets, specifically the real estate securities have been sort of on an upward trajectory. And what we decided to do is start taking chips of the table and raise the cash, and we've got all the way up to about 25% of cash and cash equivalents through the end of April.

And the May disruption starting with the European problem and Chinese tightening measures and mixed economic data in the United States, it has allowed us to put together a basket of stocks and take advantage of some of the market volatility in the sector.

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