SFM - FPA Queens Road Small Cap Value Fund Q1 2024 Commentary

2024-05-22 11:10:00 ET

Summary

• First Pacific Advisors (FPA) is a Los Angeles-based institutional money management firm practicing a disciplined approach to value investing, prudently seeking superior long-term returns while maintaining a focus on capital preservation.
• The FPA Queens Road Small Cap Value Fund returned 3.36% in Q1 2024, outperforming the Russell 2000 Value Index.
• The fund has a preference for high-quality compounders and remains disciplined on valuation and risk management.
• The portfolio underwent some adjustments, trimming high-quality compounders and adding potentially better opportunities.

Dear Shareholder

The FPA Queens Road Small Cap Value Fund (“Fund”) returned 3.36% in the first quarter of 2024 vs. 2.90% for the Russell 2000 Value Index (“Index”). As a reminder, we expect to outperform in down markets and trail somewhat in speculative markets as a result of our diligent, disciplined, and patient process....

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