Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Value Fund” first quarter 2024 investor letter. A copy of the Third Avenue Value Fund can be downloaded here. The fund returned 8.58% in the first quarter, compared to the MSCI World Index, which returned 8.97%, and the MSCI World Value Index’s 7.65% return. Over the trailing three and five-year periods, the Fund has returned 16.03% and 15.16% annualized, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Third Avenue Value Fund highlighted stocks like Deutsche Bank Aktiengesellschaft (NYSE:DB), in the first quarter 2024 investor letter. Deutsche Bank Aktiengesellschaft (NYSE:DB) is a stock corporation that provides corporate and investment banking, and asset management products and services. The one-month return of Deutsche Bank Aktiengesellschaft (NYSE:DB) was -5.34%, and its shares gained 49.95% of their value over the last 52 weeks. On June 27, 2024, Deutsche Bank Aktiengesellschaft (NYSE:DB) stock closed at $15.79 per share with a market capitalization of $31.177 billion.
Third Avenue Value Fund stated the following regarding Deutsche Bank Aktiengesellschaft (NYSE:DB) in its first quarter 2024 investor letter:
“Idiosyncratic as the details of Bank of Ireland’s progress may be, many of the underlying principles are surprisingly common today. Deutsche Bank Aktiengesellschaft (NYSE:DB) (“Deutsche”) shares many similarities. Its capital base and balance sheet have improved dramatically in recent years. Management changes in 2018 precipitated sweeping changes in the way the bank is run, which, when combined with an improved interest rate environment, have led to Deutsche Bank’s greatly improved operating results. During 2023, Deutsche produced a return on tangible equity of roughly 7%, and it presently trades at roughly 51% of tangible book value, which marries with a price-to-earnings3 multiple of roughly 7x. Similar to Bank of Ireland, there is little incentive for Deutsche Bank to retain much of its earnings and continue to grow its capital base, unless compelled by regulators to do so, as long as each Euro of retained capital is being valued at roughly 50 cents. Deutsche recently announced that it will increase its dividend 5 materially in 2024, and plans to make additional, successive, 50% dividend increases in each of the next two years. The company also implemented a substantial share buyback, which is highly attractive from our long-term shareholder perspective, given that the shares are presently valued at roughly 50% of tangible book value and offer an earnings yield nearly twice the bank’s return on equity.”
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Deutsche Bank Aktiengesellschaft (NYSE:DB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Deutsche Bank Aktiengesellschaft (NYSE:DB) at the end of the first quarter which was 16 in the previous quarter. Deutsche Bank Aktiengesellschaft (NYSE:DB) reported a compound annual growth rate of 6% since 2021 (see the details here.). While we acknowledge the potential of Deutsche Bank Aktiengesellschaft (NYSE:DB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We discussed Deutsche Bank Aktiengesellschaft (NYSE:DB) in another article and shared the list of best German dividend stocks. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
