Funtap/iStock via Getty Images Dear Fellow Shareholders, The Third Avenue Small-Cap Value Fund (the “Fund”) returned 7.85% during the first quarter of 2026, as compared to a return of 2.93% for the MSCI USA Small Cap Value Index (the “Index”) ¹ . For the trailing three-year and five-year periods, the Fund produced annualized returns of 14.22% and 10.11%, respectively, as compared to 12.97% and 7.28% for the MSCI USA Small Cap Value Index. Performance Detail During the quarter, Fund performance was aided by strong contributions from fertilizer producer LSB Industries ( LXU ), offshore energy services company Tidewater ( TDW ), consumer debt collection business Encore Capital Group ( ECPG ), refinery operator PBF Energy ( PBF ) and homebuilder Tri Pointe Homes ( TPH ), among others.…