Funding administration firm First Pacific Advisors not too long ago launched its “FPA Queens Highway Small Cap Worth Fund” third-quarter 2025 investor letter. A duplicate of the letter will be downloaded right here. Within the third quarter, the fund returned 7.46% in comparison with a 12.60% return for the Russell 2000 Worth Index. Within the first three quarters of 2025, the Fund returned 13.77%, in comparison with 9.04% for the index. Because the agency’s focus is on a diligent, disciplined, and affected person course of, it expects the fund to outperform in down markets and path in speculative markets. Moreover, you possibly can verify the fund’s prime 5 holdings to find out its finest picks for 2025.
In its third-quarter 2025 investor letter, the FPA Queens Highway Small Cap Worth Fund highlighted shares reminiscent of IAC Inc. (NASDAQ:IAC). IAC Inc. (NASDAQ:IAC) is a number one media and web firm. The one-month return of IAC Inc. (NASDAQ:IAC) was -2.82%, and its shares misplaced 18.26% of their worth during the last 52 weeks. On November 21, 2025, IAC Inc. (NASDAQ:IAC) inventory closed at $32.70 per share, with a market capitalization of $2.621 billion.
FPA Queens Highway Small Cap Worth Fund said the next concerning IAC Inc. (NASDAQ:IAC) in its third quarter 2025 investor letter:
“IAC Inc. (NASDAQ:IAC) is a client expertise conglomerate based and helmed by Barry Diller. The corporate has a historical past of incubating client expertise manufacturers after which spinning them off to appreciate worth – previous spin offs embrace Expedia, Reside Nation, TripAdvisor, Match Group and Angi (which was spun off earlier this yr). Right this moment’s IAC is following the identical playbook and owns DotDash Meredith, a group of media web sites together with Folks, Allrecipes , and Higher Properties & Gardens; 24% of publicly traded MGM Resorts Worldwide, a on line casino operator; 32% of Turo, an auto sharing community; Care.com ; and Vivian, a job web site for healthcare employees. The market is reluctant to ascribe a full valuation to IAC on a “sum of the components” foundation whereas the corporate is suppressing money circulation to make investments, and there’s no present said plan to appreciate worth by spinning or promoting property. We imagine that the asset worth at IAC exceeds the share value and that the corporate has a historical past of worth realization over the long run. We proceed to carry IAC as a midsized place within the portfolio.”
IAC Inc. (NASDAQ:IAC) is just not on our listing of 30 Most Widespread Shares Amongst Hedge Funds. In accordance with our database, 46 hedge fund portfolios held IAC Inc. (NASDAQ:IAC) on the finish of the second quarter, up from 43 within the earlier quarter. Whereas we acknowledge the potential of IAC Inc. (NASDAQ:IAC) as an funding, we imagine sure AI shares provide better upside potential and carry much less draw back danger. For those who’re searching for an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
