Third Avenue Funds

Value Fund
Objective
Long-term capital appreciation with limited investment risk

Investment Approach
The Fund seeks to achieve its objective by investing opportunistically, without  constraints on geography, market capitalization or industry.  Investments include:

• Equity securities, including common stock and convertible securities of well-financed companies.
• When compelling opportunities arise, senior securities, such as preferred stocks and debt instruments (including high yield and distressed securities). The senior securities in which the Fund may invest will be limited to those which provide (1) protection against the issuer taking certain actions which could reduce the value of the security, and (2) above-average current yields, yields-to-events (e.g., acquisitions and recapitalisations) or yields-to-maturity.

Small-Cap Value Fund
Objective
Long-term capital appreciation with limited investment risk

Investment Approach
The Fund seeks to achieve its objective by investing primarily in securities of companies whose market capitalisation is within the range of capitalisations, during the most recent 12-month period, of companies in the Russell 2000 Index, the S&P Small-Cap 600 Index or the Dow Jones Wilshire U.S. Small-Cap Index at the time of investment (based on month-end data).  Investments include:

• Equity securities, including common stock and convertible securities of well-financed companies.
• When compelling opportunities arise, senior securities, such as preferred stocks and debt instruments (including high yield and distressed securities). The senior securities in which the Fund may invest will be limited to those which provide (1) protection against the issuer taking certain actions which could reduce the value of the security, and (2) above- average current yields, yields-to-events (e.g., acquisitions and recapitalisations) or yields-to-maturity.

Real Estate Value Fund
Objective
Long-term capital appreciation with limited investment risk

Investment Approach

The Fund seeks to achieve its objective by investing primarily in global securities of real estate and real estate-related companies, such as Real Estate Operating Companies (REOCs), Real Estate Investment Trust (REITs), homebuilders and companies with significant real estate holdings such as supermarkets, restaurant chains and retail chains.  Investments include:

• Equity securities of well-financed real estate companies.
• When compelling opportunities arise, senior securities, such as preferred stocks and debt instruments (including high yield, distressed securities and mortgage back securities). The senior securities in which the Fund may invest will generally be limited to those which provide (1) protection against the issuer taking certain actions which could reduce the value of the security, and ( 2) above-average current yields, yields-to-events (e.g., acquisitions and recapitalisations) or yields-to-maturity.

International Value Fund
Objective
Long-term capital appreciation with limited investment risk

Investment Approach

The Fund seeks to achieve its objective by investing in global securities, without constraints on market capitalization or industry. Occasionally, the Fund may invest in companies located in emerging markets.  Investments include:

• Equity securities, including common stock and convertible securities of well-financed companies.
• When compelling opportunities arise, senior securities, such as preferred stocks and debt instruments (including corporate and sovereign debt). The senior securities in which the Fund may invest will be limited to those which provide (1) protection against the issuer taking certain actions which could reduce the value of the security, and (2) above-average current yields, yields-to-events (e.g., acquisitions and recapitalisations) or yields-to-maturity.