Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -2.25% compared to a -2.96% return for the Russell 2000 Value Index. The Fund returned 2.57% YTD compared to -0.53% 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 highlighted stocks like Fabrinet (NYSE:FN) in the third 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 November 17, 2023, Fabrinet (NYSE:FN) stock closed at $171.23 per share. One-month return of Fabrinet (NYSE:FN) was 5.09%, and its shares gained 33.58% of their value over the last 52 weeks. Fabrinet (NYSE:FN) has a market capitalization of $6.221 billion.
FPA Queens Road Small Cap Value Fund made the following comment about Fabrinet (NYSE:FN) in its Q3 2023 investor letter:
“Fabrinet (NYSE:FN) is a contract manufacturer of optical communications sensors and equipment. The company has dominant scale in hard-to-replicate precision-manufacturing technologies and an enviable track record of execution. The majority of sales are to optical communications equipment manufacturers, but Fabrinet has been successfully diversifying into the data center, industrial, auto, and medical end -markets. The stock jumped after reporting June 2023 earnings – data center 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 a top-five holding in the Fund before their latest earnings announcement and, although we have trimmed our position, is currently the largest holding. While we continue to evaluate what we believe is a positive step change in the company’s earnings power, we are seeking to take some profits in keeping with our risk management policies.”
A technician wearing protective glasses installing optical fibers and cables.
Fabrinet (NYSE:FN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Fabrinet (NYSE:FN) at the end of second quarter which was 24 in the previous quarter.
We discussed Fabrinet (NYSE:FN) in another article and shared FPA Queens Road Small Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
