Group 1: Market Performance - US tech stocks experienced a rally, with the NASDAQ posting its best session in six months, up 2.7% [3][4] - Alphabet shares surged, moving the company closer to a $4 trillion valuation [2] - Semiconductor stocks, particularly Nvidia and Broadcom, saw significant gains, with Nvidia leading the charge [5][4] Group 2: EasyJet Financial Performance - EasyJet reported a 9% increase in earnings for the fiscal year ending September 30, 2025, achieving a profit of £665 million [11][10] - The company also noted a 20% growth in passenger numbers last year and a 15% forecasted increase in EasyJet Holidays customers for the next year [14][13] - EasyJet Holidays achieved a profit of £250 million, surpassing its medium-term targets ahead of schedule [13][10] Group 3: EasyJet Operational Insights - EasyJet's operational performance improved, with a £106 million increase in earnings before interest and tax, reflecting strong operational measures [17] - The airline's punctuality and customer satisfaction reached a decade-high score of 80% [11] - EasyJet is optimistic about future growth, citing a 46% increase in earnings since setting targets in fiscal year 2023 [13][12] Group 4: Industry Context and Future Outlook - The UK budget announcement is anticipated to impact low-cost carriers positively, with hopes for a freeze or reduction in air passenger duty [24][22] - EasyJet's CEO expressed confidence in the airline's growth strategy, despite competitive pressures in the short-haul flight market [16][17] - The airline industry is witnessing increased M&A activity, particularly among smaller flag carriers being acquired by larger groups [31][30]

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]