Third Avenue Small-Cap Value Fund’s Updates on Ambac Financial Group (AMBC)

Core Insights - Third Avenue Management's "Third Avenue Small-Cap Value Fund" reported a return of 7.18% in Q3 2025, underperforming compared to the MSCI USA Small-Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [1] - The fund's performance was positively influenced by contributions from a diverse range of businesses [1] Company Specifics - Ambac Financial Group, Inc. (NYSE:AMBC) was highlighted in the fund's investor letter, with a one-month return of 3.11% and a 52-week loss of 26.73% [2] - As of November 5, 2025, Ambac's stock closed at $8.28 per share, with a market capitalization of $384.206 million [2] - Ambac is undergoing a significant transition, having received regulatory approval to sell its legacy financial guarantee business to Oaktree Capital Management, resulting in a substantial cash inflow [3] - Following the sale, Ambac announced plans to acquire ArmadaCare for $250 million, primarily funded by the proceeds from the aforementioned sale [3]