What Makes CRA International (CRAI) an Investment Bet?

Third Avenue Management's Q2 2026 investor letter for the Third Avenue Small-Cap Value Fund reveals the fund's strong performance, outpacing key indices but trailing in certain sectors. The fund's diversified approach, emphasizing undervaluation and quality, has proven effective. Among the fund's holdings, CRA International (CRAI) stands out as a newly added position.

This consulting firm, specializing in economic, financial, and management consulting, boasts a market capitalization of approximately $1.02 billion. The fund acknowledges CRA International's expertise, particularly in large-scale merger and acquisition consulting, anti-trust actions, and complex strategic issues. Despite a recent decline in stock price, the company remains a notable addition to the fund's portfolio, potentially offering significant upside with manageable downside risk.