Oil Market - Oil prices have increased over 1% for two consecutive days, driven by supply risks and optimism regarding US-China trade negotiations [3][5] - Supply concerns are heightened due to the postponement of a summit between US President Donald Trump and Russian President Vladimir Putin, along with rising tensions with Venezuela [4][5] Precious Metals Market - Gold and silver prices are fluctuating after experiencing their most significant selloffs in years, with spot gold trading near $4,140 an ounce after a 6.3% drop [6][7] - The recent decline in precious metals halted a rally that had been ongoing since mid-August, which was fueled by expectations of Federal Reserve rate cuts and concerns over budget deficits [7] Japan's Export Performance - Japan's exports rose by 4.2% in September, surpassing analyst expectations, primarily due to a 9.2% increase in shipments to other Asian countries [8] - This growth offset a 13.3% decline in exports to the United States, which were adversely affected by tariffs imposed by the Trump administration, particularly a 24.2% drop in auto shipments [8] Ukraine's Diplomatic Efforts - Ukrainian President Volodymyr Zelenskyy is visiting Sweden for defense talks with Prime Minister Ulf Kristersson, focusing on defense exports and cooperation amid ongoing tensions with Russia [10][11] - This visit is part of Zelenskyy's broader efforts to secure Western support for Ukraine's military initiatives [11]

Performance Overview - The Third Avenue Value Fund achieved a return of 11.85% for the quarter ending September 30, 2025, outperforming the MSCI World Index (7.36%) and the MSCI World Value Index (5.98%) [2] - Year-to-date, the Fund returned 26.04%, compared to 17.83% for the MSCI World Index and 17.54% for the MSCI World Value Index [2] - Annualized performance for the trailing three-year and five-year periods was 23.24% and 23.66%, respectively [2] Key Contributors to Performance - Capstone Copper was the largest contributor, benefiting from the expansion of its Mantoverde mine and rising copper prices due to tight global supplies and operational disruptions in major mining regions [3] - Lundin Mining also contributed positively, aided by rising copper and gold prices, with its Brazilian copper mine being a significant asset [3] - Warrior Met Coal's Blue Creek project began production ahead of schedule, expected to significantly increase production volumes and reduce costs [4] - Close Brothers benefited from a favorable U.K. Supreme Court ruling, improving the outlook for U.K. lenders involved in motor finance [5] Negative Contributors to Performance - Negative contributions were limited, with easyJet, Ayala Corp., S4 Capital, Interfor, and Boise Cascade noted as underperformers [7] - Boise Cascade and Interfor are exposed to the cyclical downturn in U.S. housing starts and repair activity, presenting potential opportunities for undervalued investments [7] Investment Themes - European companies were significant contributors to performance, with Deutsche Bank and Bank of Ireland showing improved health and operating performance [8][9] - The Fund reduced its position in Deutsche Bank despite its strong performance, indicating a strategic shift in investment focus [9] New Investments - The Fund initiated positions in Boise Cascade, Rogers Corp., and Ayala Corp. during the quarter [32] - Boise Cascade is viewed as inexpensive with potential for recovery in housing-related demand, supported by a strong financial position [34] - Rogers Corporation has valuable intellectual property but has struggled to grow; recent management changes may enhance its competitive position [38] - Ayala Corp. is trading at multi-decade low valuations, with potential catalysts for value creation through asset monetizations and share repurchases [40][41]

Market Overview - U.S. stocks experienced a decline, with the S&P 500 falling 0.6%, the Dow Jones Industrial Average dropping 301 points (0.7%), and the Nasdaq composite losing 0.5% [1][9]. Banking Sector - Zions Bancorp's stock plummeted 13.1% due to a $50 million charge-off related to loans, citing "apparent misrepresentations and contractual defaults" by borrowers [2]. - Western Alliance Bancorp's shares fell 10.8% after the bank announced a lawsuit against a borrower for fraud, although it maintained its financial forecasts for 2025 [2]. - Concerns are rising regarding the quality of loans made by banks following the Chapter 11 bankruptcy filing of First Brands Group, raising questions about potential broader industry risks [3]. Technology Sector - Taiwan Semiconductor Manufacturing Co. (TSMC) reported a profit increase that exceeded analyst expectations, with strong demand anticipated for its advanced process technologies [5]. - TSMC's role is critical in the AI sector, supplying chips to companies like Nvidia, which have significantly contributed to the stock market's performance this year [6]. Corporate Performance - U.S. companies are under pressure to deliver stronger profits after a 35% surge in the S&P 500 since April, necessitating substantial profit growth to justify current stock prices [7]. - Travelers' stock fell 2.9% despite reporting stronger-than-expected profits, as its revenue did not meet forecasts [7]. - Hewlett Packard Enterprise's shares dropped 10.1% after presenting long-term financial targets that analysts found disappointing [8]. - J.B. Hunt Transport Services saw a significant increase of 22.1% after surpassing Wall Street's profit expectations [8]. Oil Market - Crude oil prices declined, with U.S. crude dropping 1.4% to $57.46 per barrel and Brent crude also falling 1.4% to $61.06 per barrel [9][10]. Bond Market - Treasury yields decreased as investors sought safer investments, with the yield on the 10-year Treasury falling to 3.97% from 4.05% [11]. Economic Indicators - Manufacturing activity in the mid-Atlantic region unexpectedly shrank, providing limited insights into the economy as the Federal Reserve assesses inflation and job market conditions [12]. - The U.S. government shutdown is causing delays in important economic updates, including unemployment claims and inflation reports [13].