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– By Holly LaFon

In September Ocean Rig UDW (NASDAQ:ORIG), one of our two adopted conduct rig aggregation investments, agreed to be acquired by beyond industry associate Transocean Ltd at an almost 30% exceptional to Ocean Rig’s pre-announcement trading price. Although we accept the amount paid was ultimately on the cheaper side, abundant of the amount paid is in the anatomy of Transocean accepted stock, which could accommodate added upside should one appetite to abide to authority shares of Transocean. This development led to Ocean Rig actuality the Fund’s added better absolute contributor to achievement during the quarter. Ocean Rig is one of two oil account companies we purchased afterward their reemergence as about traded equities afterward their corresponding defalcation processes. The added such advance is Tidewater. The defalcation action accustomed both companies to accommodate with aboriginal antithesis sheets, about all of their debt accepting been adapted into equity. They additionally initially traded with actual acute valuations and sported aerial affection basal assets. As the adopted oil casework industry continues its accretion from alternate depths, the industry alliance aspect of our advance apriorism has absolutely best up steam.

From Third Avenue Management (Trades, Portfolio)’s third-quarter 2018 actor letter. This commodity aboriginal appeared on GuruFocus.

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