Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund returned 2.38% compared to a -1.06 % return for the Russell 2000 Value Index. For the full year, the fund returned 10.76% compared to an 8.05% return for the index. The firm’s focus is on long-term performance, aiming to outperform the Russell 2000 Value Index with less risk throughout the entire market cycle. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, FPA Queens Road Small Cap Value Fund emphasized stocks such as InterDigital, Inc. (NASDAQ:IDCC). 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 12.37%, and its shares gained 91.11% of their value over the last 52 weeks. On March 4, 2025, InterDigital, Inc. (NASDAQ:IDCC) stock closed at $205.08 per share with a market capitalization of $5.267 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding InterDigital, Inc. (NASDAQ:IDCC) in its Q4 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 IDCC from Qualcom in 2021 and has been hiring other former Qualcom managers. The share price has been strong all year following increased revenue, profitability, and buybacks, but it jumped when the company released particularly strong Q2 results on August 1, 2024 and Q3 results on October 31, 2024.”
A technician installing advanced cellular equipment at a 5G cell tower.
InterDigital, Inc. (NASDAQ:IDCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held InterDigital, Inc. (NASDAQ:IDCC) at the end of the fourth quarter which was 23 in the previous quarter. InterDigital, Inc. (NASDAQ:IDCC) reported revenue of $253 million in the fourth quarter of 2024, an increase of 140% year-over-year, which was above the guidance range. 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 top trending AI news on Wall Street’s radar. In addition, please check out our hedge fund investor letters Q4 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.