What Supported the Third Avenue Value Fund’s Harley-Davidson (HOG) Addition?

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Soumya Eswaran

Mon, June 22, 2026 astatine 7:14 AM CDT 4 min read

Third Avenue Management, an concern absorption institution based successful New York City, released its "Third Avenue Value Fund" first-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The money returned 7.28% successful the archetypal 4th compared to the MSCI World Index (Net) astatine -3.57%, and the MSCI World Value Index (Net) astatine 1.18%. It had a beardown three- and five-year annualized instrumentality of 16.26% and 15.38%. The missive noted that earlier the U.S. and Israeli subject run successful Iran, non-U.S. equities outperformed U.S. equities, worth strategies performed well, and the U.S. dollar weakened. The Fund excelled then, but the consequent outbreak of warfare led to a important driblet successful equities. While the Fund performed amended successful the erstwhile environment. The steadfast aims to physique a portfolio of undervalued, well-capitalized businesses susceptible of gathering shareholder wealthiness implicit time. The value-oriented attack has invested mostly extracurricular the U.S. and successful smaller companies successful caller years. During the quarter, planetary markets deteriorated, creating opportunities for the Fund to adhd to existing holdings and initiate caller positions. In addition, delight cheque the Strategy's apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Third Avenue Value Fund highlighted Harley-Davidson, Inc. (NYSE:HOG). Harley-Davidson, Inc. (NYSE:HOG) is simply a starring motorcycle shaper that operates done Harley-Davidson Motor Company, LiveWire, and Harley-Davidson Financial Services segments. On June 18, 2026, Harley-Davidson, Inc. (NYSE:HOG) closed astatine $25.67 per share. One-month instrumentality of Harley-Davidson, Inc. (NYSE:HOG) was 8.18%, and its shares gained 9.79% implicit the past 52 weeks. Harley-Davidson, Inc. (NYSE:HOG) has a marketplace capitalization of $2.70 billion.

Third Avenue Value Fund stated the pursuing regarding Harley-Davidson, Inc. (NYSE:HOG) successful its Q1 2026 capitalist letter:

"During the 4th ending March 31, 2026, the Fund initiated caller positions successful OSAKA Titanium Technologies Co., Ltd, Harley-Davidson, Inc. (NYSE:HOG) and Robert Half Inc.

Harley-Davidson manufactures motorcycles and accessories, sells fiscal services and earns marque licensing revenue. While its marque remains iconic, its halfway motorcycle marketplace successful the U.S., and the heavyweight bikes successful which Harley-Davidson specializes, person suffered respective years of income declines. Some caller declines are attributable to the aftermath of the request pull-forward that occurred during COVID, though request for caller heavyweight bikes has been stagnant-to declining for years. For Harley-Davidson specifically, the past respective years person besides been marked by aggregate activistic campaigns, committee turnover, absorption changes and a drawstring of strategical missteps.

One cardinal strategical misstep, which represented a precedence for erstwhile management, included a virtual exit from little priced entry-level bikes successful favour of much costly and higher nett borderline bikes. While conceptually appealing, that strategy ignored the request to pull caller entry-level customers and that entry-level motorcycle purchases besides pb to incremental request for precocious borderline customizations, branded accessories and fiscal work declaration originations. Possibly astir important, however, was a deficiency of designation that stuffing dealerships with acold much large costly bikes than are successful request is atrocious for trader economics, creates trader vexation and discontent and yet results successful important terms discounting to wide stale excess inventory. Our consciousness is that elements of the strategy changes being implemented by caller absorption make the accidental for acold amended operating show from the halfway motorcycle concern and it is evident that important advancement has already been made successful clearing older inventory from dealership floors..." (Click present to work the afloat text)

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