Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 13.09% compared to a 15.26% return for the Russell 2000 Value Index. The Fund returned 16.00% in 2023 vs. 14.65% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
FPA Queens Road Small Cap Value Fund featured stocks like Fabrinet (NYSE:FN) in the fourth quarter 2023 investor letter. Based in Grand Cayman, the Cayman Islands, Fabrinet (NYSE:FN) is a manufacturing company that provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services. On February 29, 2024, Fabrinet (NYSE:FN) stock closed at $215.57 per share. One-month return of Fabrinet (NYSE:FN) was -3.61%, and its shares gained 76.49% of their value over the last 52 weeks. Fabrinet (NYSE:FN) has a market capitalization of $7.827 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding Fabrinet (NYSE:FN) in its fourth quarter 2023 investor letter:
“Fabrinet (NYSE:FN) is a contract manufacturer of optical communications modules and components. The company has a dominant position in hard-to-replicate precision-manufacturing technologies and an enviable track record of execution. The majority of Fabrinet’s sales are to optical communications equipment manufacturers, but it has been successfully diversifying into the data center, industrial, auto, and medical end-markets. FN’s stock jumped after reporting June 2023 earnings – datacenter sales increased 50% sequentially and more than 100% over the previous year, driven by their 800-gigabyte transceivers for Artificial Intelligence applications. The company also announced that Nvidia is a 10%+ customer.
Fabrinet was, notably, a top-five holding in the Fund before its June earnings announcement and, although we have trimmed our position, was our largest holding at the end of 2023. While we continue to evaluate what we believe is a positive incremental change in the company’s earnings power, we are seeking to take some profits in keeping with our risk management policies.”
An automated machine assembling a product, representing the efficiency of the manufacturing process.
Fabrinet (NYSE:FN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Fabrinet (NYSE:FN) was held by 24 hedge fund portfolios, down from 30 in the previous quarter, according to our database.
We discussed Fabrinet (NYSE:FN) in another article and shared the list of best electronic stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 13 Best EV Stocks To Buy in 2024
- 13 Biggest 401(k) Mistakes to Avoid
- Jim Cramer’s 10 New Stock Picks for March 2024
Disclosure: None. This article is originally published at Insider Monkey.
