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Betting on a Value Turnaround

Zoe Van Schyndel, CFA
May 30, 2008

Value funds have gotten beaten up lately, with investments in badly beaten-up sectors like real estate and financials dominating their portfolios. But over time, it's likely that those who lose their faith in value investing will watch from the sidelines as value funds recover.

One value fund worth a second look is the Champion Funds-recommended Third Avenue Value Fund (FUND: TAVFX  ) . While it's gotten hammered over the past year, its long-term track record suggests that any losses are likely to be temporary.

Fund facts

Inception date: Nov. 1, 1990

Expense ratio: 1.08%

Net assets: $10.2 billion

Minimum Investment: $10,000

About the fund
Third Avenue Value espouses the typical value philosophy by looking for long-term capital appreciation from companies it believes are priced below their intrinsic values. In addition to common stocks, the fund also acquires senior securities, such as preferred stocks and debt instruments, which have strong covenant protection and above-average yields.

Top holdings include Henderson Land (Nasdaq: HLDCY  ) , a Hong Kong holding company; Toyota (NYSE: