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Third Avenue Management Comments on Munich Re

During the quarter, the Fund also disposed of long?held Munich Re ( XTER:MUV2 ), which the Fund initially purchased prior to the Global Financial Crisis. As a well?capitalized historically prudent underwriter and manager of its enormous investment portfolio, the company survived the Global Financial Crisis as well as the subsequent European Sovereign Crisis relatively unscathed. With those experiences behind us, a long stretch of low levels of catastrophe?related losses in the industry has led to an oversupply of capital in the industry. Meanwhile capital continues to flood into the industry from financial investors and reinsurance pricing remains under pressure. Low pricing means low returns for the assumption of certain risks. In total we realized an IRR of 5.5% beginning in early 2008. We would like to return to quality companies in the insurance industry when some of the excess capital has been cleared out, premiums reflect a "harder" market and prices of equities are available at cheaper prices.

From Third Avenue Management ( Trades , Portfolio ) International Value Fund's Q3 2015 shareholder letter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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