, Columnist
Third Avenue Freeze-Out
Mutual fund locks in investors as the high-yield market goes on a bumpy ride.
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Third Avenue Management just couldn’t take the pain anymore.
Instead of continuing to sell distressed-debt holdings at incredibly low prices, the asset manager decided to make a drastic move that will inevitably kill some of its future business. It chose to prevent investors from leaving its Third Avenue Focused Credit Fund, a $788 million mutual fund that it has decided to liquidate.