Looks like it. Tim McElvaine reported looking at distressed debt in his latest shareholder letter. Today Bloomberg reports Marty Whitman is more than just looking:
Whitman said he’s finding “huge, huge opportunities,” in
distressed debt and may launch a new fund for those investments.
“We’re very heavily in,” he said.
Whitman said he increased the limit on distressed debt that the Value Fund can hold to 35 percent of its assets and that his firm hopes to launch a new fund focused on those investments.
“In the last six months it’s practically all the investing
Third Avenue Value Fund has done,” he said. “I got so spooked by
the stock market and the terrible performance in 2008. If I buy
a performing loan with 30 percent yield to maturity, I don’t
have to worry about the stock market.”
Further down the article Whitman says his fund has 40% of assets in Hong Kong stocks. Why? Because he believes those companies have the best combination of financial strength, discounted prices relative to net asset value and potential for growth.
Among the stocks he owns is Cheung Kong Holdings (CHEUY), which I bought earlier this year.
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