What Makes CRA International (CRAI) an Investment Bet?

Soumya Eswaran

Tue, September 22, 2026 at 8:16 AM PDT 3 min read

Third Avenue Management, an investment management company, released its second-quarter 2026 investor letter for the "Third Avenue Small-Cap Value Fund". You can download the letter here. The Third Avenue Small-Cap Value Fund returned 12.85% in Q2 2026, outperforming the MSCI USA Small Cap Value Index (12.61%) but underperforming the Russell 2000 Value Index (17.19%). Year-to-date, the Fund has returned 21.72%, compared to 15.91% for the MSCI and 22.99% for the Russell index. Over three and five years, the Fund's annualized returns are 17.76% and 12.37%, respectively. The second quarter's performance benefited from diversified sources, despite challenges in certain sectors, such as offshore energy services. The management's high-conviction approach balances concentration and diversification, focusing on undervaluation and quality for downside protection. Although the Fund's absolute return was strong, it lagged behind indices like the Russell 2000, which saw significant momentum in sectors like technology, particularly semiconductors. U.S. small-cap stocks have recently outperformed large caps, signaling a shift in market dynamics. The Fund is positioned to capitalize on ongoing opportunities from recent volatility and potential consolidation in the small-cap space. Please review the Fund's top five holdings to learn more about its key selections for 2026.

In its second-quarter 2026 investor letter, Third Avenue Small-Cap Value Fund highlighted CRA International, Inc. (NASDAQ:CRAI) as a newly added position. CRA International, Inc. (NASDAQ:CRAI) is a consulting company that provides economic, financial, and management consulting services. On September 21, 2026, CRA International, Inc. (NASDAQ:CRAI) closed at $161.97 per share. Over the past month, CRA International, Inc. (NASDAQ:CRAI) declined 5.77%, but its shares are down 22.08% over the past year. CRA International, Inc. (NASDAQ:CRAI) has a market capitalization of aboiut $1.02 billion, and its stock has traded within a 52-week range of $132.17 to $227.29.

Third Avenue Small-Cap Value Fund stated the following regarding CRA International, Inc. (NASDAQ:CRAI) in its Q2 2026 investor letter:

"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…" (Click here to read the full text)