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Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. In a volatile but positive quarter, the FPA Queens Road Small Cap Value Fund (“Fund”) returned 6.07%, beating the Russell 2000 Value Index’s 4.96%. The Fund expects better performance in down markets and underperformance in speculative ones due to its disciplined approach. Amid ongoing global commodity shocks, political issues, and economic fallout from the Iran conflict, the letter discusses small-caps and the firm's long-term investment strategy. In Q1, the fund continued to rebalance the portfolio towards higher-quality holdings, focusing on balance sheet strength, earnings consistency, and returns on capital. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, FPA Queens Road Small Cap Value Fund highlighted Littelfuse, Inc. (NASDAQ:LFUS) as a material contributor. Littelfuse, Inc. (NASDAQ:LFUS) is a leading industrial technology company that designs, manufactures, and sells electronic components, modules, and subassemblies. On May 8, 2026, Littelfuse, Inc. (NASDAQ:LFUS) closed at $457.03 per share. One-month return of Littelfuse, Inc. (NASDAQ:LFUS) was 18.08%, and its shares gained 109.92% over the past 52 weeks. Littelfuse, Inc. (NASDAQ:LFUS) has a market capitalization of $11.56 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding Littelfuse, Inc. (NASDAQ:LFUS) in its Q1 2026 investor letter:
"Littelfuse, Inc. (NASDAQ:LFUS) manufactures niche electrical components including fuses, sensors, passives and semiconductors that are sold into a broad array of end markets. Mid-single digit growth is supplemented by tuck in applications and the company has high teens operating margins and strong returns on capital. We significantly added to our position in April 2025 when the stock sold off on tariff fears. Since then, the LFUS share price has more than doubled as the company demonstrated it could navigate tariffs, sales and orders accelerated out of their post-Covid trough, and the company recorded incremental sales into data centers."
Littelfuse, Inc. (NASDAQ:LFUS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 32 hedge fund portfolios held Littelfuse, Inc. (NASDAQ:LFUS) at the end of the fourth quarter, compared to 46 in the previous quarter. In the first quarter of 2026, Littelfuse, Inc.'s (NASDAQ:LFUS) net sales were $657 million, up 19% year over year, 9% organically.While we acknowledge the potential of Littelfuse, Inc. (NASDAQ:LFUS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Littelfuse, Inc. (NASDAQ:LFUS) and shared Ariel Investments' views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.