Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.48% compared to a 10.15% return for the Russell 2000 Value Index. Year-to-date, the fund returned 8.1% compared to a 9.22% return for the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
FPA Queens Road Small Cap Value Fund highlighted stocks like InterDigital, Inc. (NASDAQ:IDCC) in the third quarter 2024 investor letter. InterDigital, Inc. (NASDAQ:IDCC) is a global research and development company that focuses on wireless, visual, artificial intelligence (AI), and related technologies. The one-month return of InterDigital, Inc. (NASDAQ:IDCC) was 17.46%, and its shares gained 102.29% of their value over the last 52 weeks. On November 8, 2024, InterDigital, Inc. (NASDAQ:IDCC) stock closed at $183.07 per share with a market capitalization of $4.64 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding InterDigital, Inc. (NASDAQ:IDCC) in its Q3 2024 investor letter:
“InterDigital, Inc. (NASDAQ:IDCC) is a research and development organization that develops and acquires wireless and video patents. The company has a history of strong financial performance, opportunistically buys back shares, and pays a modest dividend. IDCC has been successfully renewing its wireless licensing agreements (Apple in 2022, Samsung in 2023) and has a growing stream of recurring licensing revenues across consumer electronics, internet of things (IoT) and automotive customers. CEO Liren Chen joined in 2021 from Qualcom and has been hiring other former Qualcom managers. Shares have been strong all year on growing revenue, profitability, and buybacks but jumped when the company released particularly strong Q2 results on August 1, 2024.”
A technician installing advanced cellular equipment at a 5G cell tower.
InterDigital, Inc. (NASDAQ:IDCC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held InterDigital, Inc. (NASDAQ:IDCC) at the end of the second quarter which was 32 in the previous quarter. InterDigital, Inc.’s (NASDAQ:IDCC) third-quarter total revenue of $129 million was well above the expectations. While we acknowledge the potential of InterDigital, Inc. (NASDAQ:IDCC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed InterDigital, Inc. (NASDAQ:IDCC) and shared the list of worst 52-week high stocks to buy according to short sellers. In addition, please check out our hedge fund investor letters Q3 2024 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.