With Rewey at the helm, it has lost 11 percent compared with a gain of 7 percent for the S&P 500 index. The value fund is down 9.8 percent this year and assets have plunged to $1.7 billion by Nov. 30.

The other funds aren’t doing much better. The $179 million Third Avenue International Value Fundis down 16 percent this year and has trailed 98 percent of peers over five years, according to data compiled by Bloomberg. The $395 million Small- Cap Value Fund lost 7 percent this year and is trailing 61 percent of peers over five years.

Third Avenue’s biggest fund, the $3.4 billion Real Estate Value Fund, is up 8.7 percent annually in the last five years, though it’s down 5.4 percent for 2015.

Leadership Concern

“The old school style of value investing Third Avenue is known for has been out of favor,” said Steven Roge, a portfolio manager at R.W. Roge & Co., which oversees more than $200 million for clients. “It hasn’t worked very well for most of the past decade.”

In 2014, managers on the Third Avenue International Value Fund and the Third Avenue Small-Cap Value Fund left the firm, said Leo Acheson, an analyst at Morningstar Inc. Third Avenue has lost 15 members of its investment team since early 2013, he said in an interview.

Third Avenue’s “poor risk management and oversight, leadership changes and continued turnover,” explain why all of the firm’s funds are being placed under review for a possible downgrade of their ratings, Acheson said in a note on Monday.

Whitman, who in 2002 sold a majority stake in his firm to Affiliated Managers Group Inc., remains the chairman of Third Avenue. A management committee now runs the firm after Barse’s exit.

“There’s a concern that Third Avenue was all about Marty Whitman and that they haven’t been able to make the transition to new leadership,” said Glazer of Mayflower Advisors.±±

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