Group 1 - The Fund initiated new positions in Boise Cascade (BCC), a building materials distributor and manufacturer [2]

Performance Overview - The Third Avenue Small-Cap Value Fund returned 7.18% in Q3 2025, underperforming the MSCI USA Small Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [2] - The Fund's annualized returns for the trailing three-year and five-year periods were 15.11% and 16.09%, respectively [2] Positive Contributors - Supernus Pharmaceuticals (SUPN) was the largest positive contributor, benefiting from a strong financial position, profitability, an expanding neurology drug portfolio, and a successful acquisition [3] - Investors Title Company (ITIC) saw positive performance due to increased real estate refinancing activity [3] - UMB Financial Corporation (UMBF) successfully integrated its acquisition of Heartland Financial, showcasing operational competence [3] Negative Contributors - Atlanta Braves Holdings (BATRA) was a negative contributor, though it is perceived to have an attractive asset base and potential for favorable resource conversion [4] - UniFirst Corporation (UNF) faced pressure to demonstrate its value proposition after rejecting an acquisition offer from Cintas Corporation (CTAS) [4] - FRP Holdings (FRPH) was impacted by a lack of confidence in government spending affecting the D.C. metro area [4] Investment Strategy - The Fund focuses on acquiring companies in transitional states, aiming to capitalize on undervalued businesses with potential for future growth [5] - Investment activity emphasizes companies that are well-financed, trading at discounts to net asset value, and have identifiable levers for value creation [6] - The Fund's turnover rate is approximately 20%, indicating a long-term investment horizon of about five years, contrasting with the average turnover of 91.7% in the small-cap value fund universe [7] Types of Investment Opportunities - The Fund identifies three broad types of investment opportunities: 1. Companies facing industry-wide headwinds that can improve through restructuring [9] 2. Companies with current economic returns that have underappreciated self-help opportunities [9] 3. Event-driven situations that offer unique return profiles through transformational changes [9] Recent Transactions - Ambac Financial (AMBC) completed the sale of its legacy financial guarantee business, leading to a significant cash inflow and a transformation towards insurance distribution [11][12] - The Fund initiated new positions in Boise Cascade (BCC) and Rogers Corporation (ROG) during the quarter, while also adding to existing positions like UniFirst Corporation (UNF) [14] Company Profiles - Boise Cascade is a leading manufacturer and distributor of building materials, facing challenges due to slowing housing activity but retaining a strong financial position [15][16] - Rogers Corporation specializes in electronic and materials technology solutions, facing growth challenges but possessing valuable intellectual property and a strong balance sheet [18][19][20]

Core Viewpoint - DA Davidson has lowered the price target for Boise Cascade (BCC) to $95 from $100 while maintaining a Buy rating on the shares, indicating a cautious outlook on the company's performance in the engineered wood products sector [1] Company Summary - The price target for Boise Cascade (BCC) has been adjusted to $95 from $100, reflecting ongoing price pressure in the Engineered Wood Products (EWP) market [1] - Despite the lowered price target, the firm retains a Buy rating on Boise Cascade shares, suggesting confidence in the company's long-term prospects [1] Industry Summary - The Engineered Wood Products (EWP) sector is experiencing continued price pressure, with expectations of low to mid single-digit sequential declines persisting through Q1 [1] - If competition remains intense and prices continue to decline, a significant portion of the EWP industry may operate at or below cash production costs, potentially leading to a supply response [1]

Core Insights - The article emphasizes the significance of the housing market in the United States, highlighting its impact on every American [1]. Group 1 - The author expresses a strong belief in investing in the housing market, referring to it as America's most critical market [1]. - The article mentions a beneficial long position in several companies, including CSL, UNP, FIX, and HD, indicating a strategic investment approach [1].

Core Insights - James Hardie Building Products Inc. has announced an expansion of its product offerings through a new multi-year agreement with Boise Cascade Company, enhancing distribution capabilities in key markets [1][2][3] Company Overview - James Hardie is recognized as the North American leader in fiber cement home siding and exterior design solutions, offering a range of high-performance, low-maintenance products [5] - The company operates with a commitment to quality and safety, employing over 3,700 individuals in North America [5] Partnership Details - The agreement allows Boise Cascade to distribute AZEK® Exteriors and TimberTech® Decking and Railing products in the Pittsburgh, Baltimore, and Washington, D.C. markets, alongside James Hardie's full suite of products [2][3] - This partnership aims to leverage Boise Cascade's extensive distribution network of 39 locations across North America, enhancing access to James Hardie's product portfolio [2][3] Product Portfolio - James Hardie's expanded portfolio now includes TimberTech®, AZEK® Exteriors, Versatex®, and StruXure®, providing a variety of options for homeowners in siding, decking, trim, railing, and pergolas [3] - The introduction of TimberTech® is particularly significant as it marks the first time this leading composite decking brand will be available in the specified markets [3] Strategic Goals - Both companies express a commitment to mutual growth, with James Hardie emphasizing the importance of expanding access to its high-quality products through this partnership [3]

Core Insights - Medicus Pharma Ltd. has initiated the enrollment of the first patient in the SKNJCT-004 phase 2 clinical study in the UAE, aimed at non-invasively treating basal cell carcinoma (BCC) of the skin [1] Company Summary - Medicus Pharma Ltd. is a biotech/life sciences company focused on advancing clinical development programs for novel and potentially disruptive therapeutic assets [1] Industry Context - The study is being conducted in collaboration with Cleveland Clinic Abu Dhabi, which serves as the principal investigator [1]

Group 1 - Boise Cascade Company (BCC) is experiencing significant activity in the options market, particularly with the Oct 17, 2025 $175.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts currently rate Boise Cascade as a Zacks Rank 5 (Strong Sell) in the Building Products - Wood industry, placing it in the bottom 6% of the Zacks Industry Rank, with a downward revision in earnings estimates from $1.86 to $1.06 per share over the last 60 days [3] Group 2 - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive specializes in medium and small-cap markets while also keeping the community updated on blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Core Insights - Medicus Pharma Ltd. has initiated patient recruitment for the SKNJCT-004 phase 2 clinical study aimed at non-invasively treating basal cell carcinoma (BCC) of the skin [1] Company Summary - Medicus Pharma Ltd. is a biotech/life sciences company focused on advancing clinical development programs for novel and potentially disruptive therapeutic assets [1] Industry Context - The study is being conducted at Cleveland Clinic Abu Dhabi (CCAD), indicating a collaboration between the company and a prominent healthcare institution [1]

Core Insights - Medicus Pharma Ltd. is advancing its clinical development program for a novel microneedle array (D-MNA) aimed at treating basal cell carcinoma (BCC) of the skin, with significant progress in its Phase 2 study [1][3][8] - The company has received FDA acceptance for a Type C meeting to discuss the D-MNA product development and seek fast-track approval for its clinical program [1][2] - Financial highlights for Q2 2025 indicate a net loss of $6.2 million, an increase in cash reserves to $9.7 million, and total operating expenses of $6.0 million, reflecting the company's investment in clinical development [12][13][15] Clinical Development - The SKNJCT-003 Phase 2 study has randomized over 75% of the 90 participants, focusing on the efficacy of D-MNA compared to a placebo [3][8] - The study is designed as a randomized, double-blind, placebo-controlled trial, evaluating two dose levels of D-MNA (100μg and 200μg) against a placebo [4][5] - An interim analysis in March 2025 showed over 60% clinical clearance among participants, with the study currently ongoing at nine clinical sites in the U.S. [8] Financial Performance - The company reported $11.5 million in net proceeds from financing and warrant exercises, enhancing its balance sheet [13] - Cash and cash equivalents increased from $4.0 million at the end of Q1 2025 to $9.7 million at the end of Q2 2025 [13] - Operating expenses rose to $6.0 million in Q2 2025 from $3.6 million in the same period in 2024, with R&D expenses slightly increasing to $1.4 million [13] Strategic Initiatives - Medicus Pharma is pursuing strategic transactions, including the acquisition of Antev Ltd., a UK-based biotech company focused on a GnRH antagonist for prostate cancer [10][18] - A non-binding memorandum of understanding has been established with Helix Nanotechnologies Inc. to explore the development of mRNA vaccines [11] - The company is also conducting a clinical study (SKNJCT-004) in the UAE, aiming to randomize 36 patients across four sites [9]