Third Avenue Small-Cap Value Fund adds Maximus to its portfolio, betting on AI-led margin improvements and strong federal revenue growth to offset recent share price volatility.
Third Avenue initiated a position in Maximus, citing attractive valuation, strong federal revenue growth, and AI-driven margin expansion potential.
Third Avenue Small-Cap Value Fund reported a 12.85% return for Q2 2026, trailing the Russell 2000 Value Index. The fund initiated a new position in government services firm Maximus (MMS), citing attractive valuations and AI-driven margin expansion potential despite broader market pessimism regarding government contracting.
The fund cited Maximus's strong federal revenue growth, attractive valuation, and the potential for margin expansion through the internal application of artificial intelligence.