Third Avenue Management, an investment management company, released its third-quarter 2026 investor letter for the “Third Avenue Small-Cap Value Fund”. The letter can be downloaded here. The Third Avenue Small-Cap Value Fund returned -3.31% in Q3 2026, outperforming its benchmark’s -4.25%, while remaining strongly ahead year-to-date (17.69% vs. 10.98%). Contributors included PBF Energy, Qualys, Tidewater, ICF International, and Robert Half; detractors included Collegium Pharmaceutical, Octave Specialty Group, MYR Group, Kaiser Aluminum, and Flagstar Bank. The managers remain optimistic about small-cap valuations relative to large caps but emphasize balance-sheet strength, especially as borrowing costs and credit stress rise. They also see financially strong companies as better positioned to pursue acquisitions, buybacks, and other “resource conversion” opportunities. During the quarter, the Fund added Champion Homes and Versigent and continued focusing on undervalued businesses with recovery potential and durable competitive advantages. Also, check the Fund’s top five holdings to see its best picks for 2026.
In its Q3 2026 investor letter, Third Avenue Small-Cap Value Fund highlighted Champion Homes, Inc. (NYSE:SKY). Champion Homes, Inc. (NYSE:SKY) is a leading producer of factory-built housing, offering manufactured and modular homes, park models, and commercial modular buildings. As of October 29, 2026, Champion Homes, Inc. (NYSE:SKY) held a $4.40 billion market capitalization at $81.05 per share. Champion Homes, Inc. (NYSE:SKY) stock fell 4.14% over the past month while maintaining a 23.77% 52-week gain.
Third Avenue Small-Cap Value Fund stated the following regarding Champion Homes, Inc. (NYSE:SKY) in its Q3 2026 investor letter:
“Champion Homes, Inc. (NYSE:SKY) a leading producer of manufactured and modular homes in North America. While the company operates under several brands, such as Titan, Champion and Skyline, manufacturing “affordable housing” is the common thread across its nationwide footprint. The average sales price for Champion’s deliveries has been less than $100,000 per unit in recent periods. Champion also operates with significant scale after merging with industry peer Skyline in 2018, a tie-up that created the industry’s second largest company in terms of market share, trailing Berkshire Hathaway subsidiary Clayton Homes…” (Click here to read the full text)
Champion Homes, Inc. (NYSE:SKY) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Champion Homes, Inc. (NYSE:SKY) at the end of the second quarter, which was 36 in the previous quarter. While we acknowledge the potential of Champion Homes, Inc. (NYSE:SKY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.