Soumya Eswaran
3 min read
In This Article:
Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned -2.51% compared to a -7.74% return for the Russell 2000 Value Index. President Trump announced his tariffs on April 2nd, causing equity markets to decline sharply and increasing volatility. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted 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 11.91%, and its shares gained 95.19% of their value over the last 52 weeks. On May 21, 2025, InterDigital, Inc. (NASDAQ:IDCC) stock closed at $214.48 per share with a market capitalization of $5.563 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding InterDigital, Inc. (NASDAQ:IDCC) in its Q1 2025 investor letter:
"InterDigital, Inc. (NASDAQ:IDCC) is a research and development organization that develops and acquires wireless communication 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. The company’s share price was strong in 2024 on growing revenue, profitability, and buybacks. We began trimming our IDCC position this year."
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. 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 undervalued AI stock set for massive gains.
