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To: Ram Seetharaman who wrote (2813)	5/24/2000 2:51:00 PM
From: Ram Seetharaman	Respond to of 2946

Wednesday May 24, 2:18 pm Eastern Time Fund buys semi-conductor stocks amid sell-off NEW YORK, May 24 (Reuters) - Fund manager Martin Whitman, whose Third Avenue Value Fund was up smartly last year and earlier this year based on a big bet in some semiconductor equipment stocks, said on Wednesday he has been buying the stocks this week amid a wave of ``panic selling.'' Addressing his funds group's annual shareholder meeting, Whitman said, ``We have been heavy buyers in the panic selling of the last two days.'' He referred specifically to AVX Corp. (NYSE:AVX - news) and Silicon Valley Group Inc. (NasdaqNM:SVGI - news), the two biggest holdings in the $1.7 billion fund as of April 30. At one point, semiconductor equipment stocks accounted for about 40 percent of the portfolio, but lately the position has been closer to 30 percent. Whitman told shareholders he likes both companies because of their strong finances and also because of good earnings prospects. In an interview after the meeting he declined to speculate on what might have caused the sell-off. AVX was off 7-1/4 to 51-1/8 in early afternoon trading while Silicon Valley Group was off 1-7/8 to 22-1/4. The Third Avenue Value Fund is up about 12 percent so far this year. Until recently it was up about 17 percent. Whitman told the meeting he has been trimming some positions, a move that is likely to produce a long-term capital gain of about $6.00 per share for the fund shareholders. He said fund directors will soon be asked to approve a distribution of $4.00 per share. He noted that in the past, the fund's shareholders have not been hit with big tax bills and he said that under the circumstances the tax bill was ``minimal.'' Whitman said one investment that has not worked out well for the fund is Innovative Clinical Solutions Ltd. (OTC BB:ICSL.OB - news). He said the fund's holding of subordinated debentures is being converted into a substantial equity stake in a reorganization. Innovative Clinical Solutions, which provides services for the pharmaceutical industry, said earlier this week that the restructuring would be accomplished through a ``prepackaged'' reorganization under the bankruptcy laws. Separately, shareholders of the Third Avenue Value Fund, the Third Avenue Small-Cap Value Fund and the Third Avenue Real Estate Value Fund approved a new advisory agreement between the funds and the Whitman family business, EQSF Advisers Inc. The agreement allows Whitman's three children, who own 74 percent of the company, to vote their stock directly. Whitman, who is 75 years old and says he is in good health, has signed a 5-year contract to continue in his role as chairman, chief executive and fund manager.