Third Avenue Builds New Stake in CRA International

Third Avenue Management has added CRA International, Inc. (NASDAQ:CRAI) to its Small-Cap Value Fund, betting on a Boston consulting firm whose stock has fallen 22.08% over the past year. The new position was disclosed in the fund's second-quarter 2026 investor letter.

CRA International, which operates under the brand Charles River Associates, closed at $161.97 per share on September 21, 2026, according to the letter's accompanying data. The stock has declined 5.77% over the past month. The company carries a market capitalization of about $1.02 billion and has traded within a 52-week range of $132.17 to $227.29.

Third Avenue's case for the stock rests on CRA's position at the intersection of high-stakes corporate work and expert-driven consulting. In its letter, the fund described the firm in detail:

"CRA International, Inc. (NASDAQ:CRAI), which operates under the brand Charles River Associates, is a global consulting firm specializing in economic, financial, and management consulting. Founded in 1965 and headquartered in Boston, many of CRA's senior staff are globally recognized experts in their fields, which focus on large-scale merger and acquisition consulting, anti-trust actions, major regulatory and litigation matters and complex strategic issues. CRA is a 'go-to' industry leader in the legal consulting arena and has worked on engagements with 98 of the top 100 global law firms over the past two years…"

That client reach — 98 of the top 100 global law firms over two years — anchors the fund's thesis that CRA holds a durable franchise in legal and litigation consulting, a business less tied to discretionary corporate spending cycles.

The new position sits inside a portfolio that delivered a strong but not market-beating quarter. The Third Avenue Small-Cap Value Fund returned 12.85% in Q2 2026, edging past the MSCI USA Small Cap Value Index at 12.61% but trailing the Russell 2000 Value Index at 17.19%. Year-to-date, the fund is up 21.72%, against 15.91% for the MSCI benchmark and 22.99% for the Russell index. Over three and five years, the fund has annualized at 17.76% and 12.37%, respectively.

Third Avenue attributed the second-quarter gap to index composition rather than stock selection. The Russell 2000 surged on momentum in technology, particularly semiconductors — sectors where the fund's high-conviction, value-oriented book is underweight. Q2 gains came from diversified sources despite challenges in certain holdings, including offshore energy services.

The fund's management frames its approach as a balance between concentration and diversification, targeting undervaluation and quality to protect on the downside. That discipline explains the attraction to CRA: a profitable, expert-led franchise bought after a double-digit drawdown from its 52-week high.

Broader market dynamics may also work in the fund's favor. U.S. small-cap stocks have recently outperformed large caps, a shift Third Avenue reads as an opening. The firm says the fund is positioned to capitalize on opportunities created by recent volatility and potential consolidation in the small-cap space.

For CRA International, the endorsement from a disciplined value shop arrives as the stock sits roughly 29% below its 52-week peak of $227.29. If Third Avenue's thesis holds, the firm's deep ties to top-tier law firms and its role in major antitrust and M&A disputes provide the earnings resilience that value investors prize in an uncertain small-cap market.