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 - Rosen Law Firm has announced a class action lawsuit against James Hardie Industries plc, alleging that the company misled investors regarding the strength of its North America Fiber Cement segment during the specified class period from May 20, 2025, to August 18, 2025 [1][3]. Group 1: Allegations and Misleading Information - The lawsuit claims that James Hardie Industries misrepresented the demand for its products, stating that stock levels were "normal" despite knowledge of distributors destocking inventory [3]. - Investors are alleged to have suffered damages when the true state of the company's operations became known [3]. Group 2: Legal Proceedings and Participation - Shareholders wishing to serve as lead plaintiffs must file motions with the court by December 23, 2025 [4]. - Participation in the class action is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4]. Group 3: Rosen Law Firm's Background - Rosen Law Firm is recognized for its commitment to shareholder rights litigation, having recovered over $1 billion for shareholders since its inception [6].

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]

Company Overview - Eagle Materials Inc. (EXP) is a Dallas-based producer of cement and gypsum wallboard, with operations also in concrete, aggregates, and recycled paperboard [2] - The company's operations are evenly split between heavy materials (cement-centric) and light materials (wallboard-centric), with strategically located plants in import-insulated U.S. markets [2] Market Demand and Supply Dynamics - Cement demand is driven by aging infrastructure and a structural housing shortage, primarily used in public infrastructure, residential, and commercial construction [2] - Wallboard benefits from long-term supply advantages through natural gypsum mines and a 60-year supply agreement with Santee Cooper, protecting EXP from declines in U.S. synthetic gypsum output [3] - Both segments exhibit "rock pit" characteristics, which means local supply constraints and high transportation costs enhance EXP's pricing power and profitability [3] Competitive Advantages - The company operates in a defensible industry with limited domestic supply growth due to regulatory constraints on new cement plants, creating a natural moat for existing producers [4] - EXP is the lowest-cost producer in the industry, which supports high and stable margins, while disciplined capital allocation has led to strong returns on equity and long-term earnings growth [5] - Historical performance indicates mid-single-digit volume growth, double-digit pricing gains, and EPS compounding above revenue growth, reflecting operational efficiency and shareholder-aligned management [5] Growth Catalysts and Long-term Outlook - Key catalysts for growth include ongoing infrastructure spending, constrained domestic supply, and continued secular growth in U.S. housing [6] - Despite appearing cyclical, EXP's local monopolistic advantages, stable cost structure, and long-term growth prospects position it as a compelling compounder capable of mid-teen returns over the next 5–10 years [6] Historical Context - Previous bullish theses on EXP highlighted its localized concrete business, vertical integration, low-cost production, and disciplined capital allocation, with the stock depreciating approximately 2.4% since the last coverage [7] - The current thesis emphasizes long-term gypsum supply and structural demand drivers, aligning with previous positive assessments of the company's regional monopolies and robust margins [7]

Core Insights - Northstar Enterprise + Defense is advancing its AI-optimized modular data center platform through collaborations with Owens Corning and other distributed computing companies, positioning itself in the growing edge AI and modular infrastructure market projected to reach $269.8 billion by 2032 [2][3] Collaboration and Innovation - The partnership with Owens Corning focuses on integrating advanced composite and insulation technologies into Northstar's Modular Data Center (MDC) product line, enhancing durability, insulation efficiency, and sustainability [2][3] - This collaboration aims to accelerate the transition to low-carbon, high-resilience infrastructure tailored for AI and defense applications [3] Deployment and Performance - Northstar has successfully deployed a modular disaster recovery network node for a major U.S. telecom provider and a full-scale modular data center for a Fortune 50 enterprise, demonstrating its capability to meet urgent demands with rapid deployment [4][5] - The AI-ready MDCs support compute densities up to 150kW per rack, facilitating high-throughput reinforcement learning and decentralized AI processing [5][6] Manufacturing and Sustainability - Northstar's MDCs are constructed using proprietary Fiber Reinforced Polymer (FRP) composites, making them up to 30% lighter than aluminum and deployable without heavy equipment [6][8] - Each MDC is designed for net-zero carbon manufacturing, contributing to reduced embedded emissions compared to traditional materials like steel or concrete [8][12] Security and Compliance - The next-generation mobile SCIF modular units are engineered to meet stringent security standards, ensuring protection against electronic, EMP, and cyber threats [8][9] - These modules are designed for easy transport and rapid deployment, enhancing operational efficiency in mission-critical environments [9][10] Strategic Vision - Northstar Technologies Group aims to integrate advanced materials and intelligent manufacturing across its business units, redefining the construction of mission-critical infrastructure [9][10] - The company emphasizes sustainability and American manufacturing leadership through its innovative approaches [10][12]

Core Insights - Builders FirstSource, Inc. (BLDR) is the largest U.S. supplier of building materials with a market cap of $13.5 billion, providing an integrated home-building solution through a nationwide network of facilities [1] Financial Performance - The company is expected to release its fiscal Q3 2025 results on October 30, with analysts projecting an adjusted EPS of $1.69, a nearly 45% decrease from $3.07 in the same quarter last year [2] - For fiscal 2025, adjusted EPS is forecasted to be $6.72, down 41.9% from $11.56 in fiscal 2024, but projected to rise 6.6% year-over-year to $7.16 in fiscal 2026 [3] Stock Performance - BLDR stock has declined 34.4% over the past 52 weeks, underperforming the S&P 500 Index's 14.8% return and the Industrial Select Sector SPDR Fund's nearly 11% gain during the same period [4] - Despite weaker-than-expected Q2 2025 revenue of $4.23 billion, shares recovered slightly due to an adjusted EPS of $2.38 beating analyst expectations, indicating strong cost control and operational efficiency [5] Analyst Ratings - Analysts maintain a cautiously optimistic view on BLDR stock, with a consensus "Moderate Buy" rating; among 21 analysts, 10 suggest a "Strong Buy," one a "Moderate Buy," eight a "Hold," and two a "Strong Sell" [6] - The average analyst price target for Builders FirstSource is $142.40, suggesting a potential upside of 17.4% from current levels [6]

Core Insights - Gibraltar Industries, Inc. (ROCK) is experiencing growth due to a strong backlog, disciplined portfolio simplification, strategic acquisitions, and a healthy balance sheet with solid cash flow generation [1][4][5] - The Agtech and Infrastructure segments are driving robust project-based activity, contributing positively to the company's performance [1][6][7] Company Performance - The total backlog for Gibraltar Industries increased by 43% year over year to $278 million, with Agtech backlog surging 71% [6][9] - The company reported an adjusted operating margin of 14.5% in Q2 2025, with a 300-basis-point margin expansion in the Infrastructure segment [9][10] - The company is focused on core markets after divesting its Renewables business, which is expected to enhance margin and cash flow performance [4][9] Strategic Initiatives - Gibraltar Industries is simplifying its portfolio by divesting non-core businesses and focusing on Building Products and Structures markets [4][5] - The company invested $208 million in targeted M&A to strengthen its presence in core markets, resulting in a 14% adjusted sales growth [5][6] - The implementation of 80/20 productivity initiatives and enterprise-wide business system conversions is expected to enhance operational efficiency and profitability [8][11] Industry Context - Other industry players like Armstrong World Industries, Owens Corning, and Masco Corporation are also benefiting from strategic acquisitions and strong liquidity positions [2][13][14][15] - Increased government funding and optimism regarding potential rate cuts by the Fed are fostering growth trends across the industry [2] Challenges - Gibraltar Industries faces challenges from housing softness, tariffs, margin strain, and funding risks, which may hinder growth prospects [3][11][12] - The company experienced margin pressure due to shifts in product and segment mix, with consolidated gross margin declining to 28.4% in Q2 2025 [11][12]

Core Viewpoint - Swiss building-materials supplier Holcim plans to acquire Xella for more than $2 billion to expand its building solutions business [1] Company Summary - Holcim is focused on enhancing its building solutions segment through strategic acquisitions [1] - The acquisition of Xella is expected to strengthen Holcim's market position and product offerings in the building materials industry [1] Industry Summary - The acquisition reflects ongoing consolidation trends within the building materials sector as companies seek to enhance their capabilities and market reach [1] - Holcim's move is indicative of a broader strategy among industry players to diversify and innovate in building solutions [1]

Holcim agreed to buy Xella, a European walling systems company, in a €1.85 billion ($2.2 billion) deal, as it expands its building solutions business following the spin off of its North American unit https://t.co/ICh6sXAwdr ...

Core Viewpoint - Holcim has announced a significant acquisition of Xella, a German walling systems manufacturer, for a total of 1.85 billion euros, equivalent to approximately 2.16 billion dollars [1] Group 1: Acquisition Details - The acquisition deal is valued at 1.85 billion euros [1] - The transaction amount translates to about 2.16 billion dollars [1]