Third Avenue Management, an investment management company based in New York City, released its “Small-Cap Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023 the fund returned 21.88% compared to a 14.65% return for the Russell 2000 Value Index. In Q4 the fund returned 9.38% versus 15.26% for the index. The returns, both absolute and relative, for the entire year were satisfactory. The past two years have seen rapid changes in equity prices due to varying interest rate outlooks. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Third Avenue Management Small-Cap Value Fund featured stocks such as ProAssurance Corporation (NYSE:PRA) in the fourth quarter 2023 investor letter. Headquartered in Birmingham, Alabama, ProAssurance Corporation (NYSE:PRA) is a US-based insurance and reinsurance provider. On January 30, 2024, ProAssurance Corporation (NYSE:PRA) stock closed at $13.75 per share. One-month return of ProAssurance Corporation (NYSE:PRA) was 2.61%, and its shares lost 29.67% of their value over the last 52 weeks. ProAssurance Corporation (NYSE:PRA) has a market capitalization of $700.828 million.
Third Avenue Management Small-Cap Value Fund stated the following regarding ProAssurance Corporation (NYSE:PRA) in its fourth quarter 2023 investor letter:
“Fund performance was diluted by a handful of company-specific issues. ProAssurance Corporation (NYSE:PRA) was once again a material performer. This time to the downside. Earnings in 2023 have been inconsistent, creating extreme volatility in the shares. The third quarter results were dismal as a minor segment, Workers’ Compensation, required a reserve boost. In addition, book value remains under pressure given rising interest rates, leading to mark-to-market losses on the bond portfolio. Fund Management re-underwrote the security during the quarter and concluded PRA is well-capitalized and overly pessimistic assumptions are currently embedded in its share price. It remains a material position in the Fund and similar to HBB last year, it does not need much operational improvement for the narrative to shift. Incidentally, PRA should also benefit from lower interest rates, reversing mark-to-market losses in the bond portfolio.”
A suburban home with people walking in front, representing the protection provided by the Property & Casualty Insurance.
ProAssurance Corporation (NYSE:PRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. s per our database, 14 hedge fund portfolios held ProAssurance Corporation (NYSE:PRA)at the end of third quarter which was 13 in the previous quarter.
We discussed ProAssurance Corporation (NYSE:PRA) in another article and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.
