Palm Valley Capital Management, an investment management company, has published the letter for investors of the third quarter of 2025 of the “Palm Valley Capital Fund”. You can download a copy of the letter here. In the third quarter, Palm Valley Capital Fund showed 2.35% compared to a 9.11% gain of S&P Smallcap 600 and a 7.99% increase in the Morningstar Small Cap Total Return index. At the beginning of the quarter, the fund invested 73.5% in cash equivalents, increasing slightly to 74.1% at the end of the quarter. Small capitalization actions obtained better results than large capitalization during the period, in advance of FED flexibility and a reduction in concerns about the impact of tariffs on corporate gains. In addition, see the five main participations of the Fund to learn about your best options in 2025.
In his letter to the investors of the third quarter of 2025, Palm Valley Capital Fund highlighted actions such as LKQ Corporation (Nasdaq: LKQ). LKQ Corporation (Nasdaq: LKQ) is a leading product and spare parts distributor for vehicles to repair, maintain and customize cars. The monthly profitability of LKQ Corporation (Nasdaq: LKQ) was -7.711% and its shares lost 21.97% of its value in the last 52 weeks. On October 7, 2025, the shares of LKQ Corporation (Nasdaq: LKQ) closed at $ 29.97 per share, with a market capitalization of 7,711 million dollars.
Palm Valley Capital Fund declared the following with respect to LKQ Corporation (Nasdaq: LKQ) in its letter to investors of the third quarter of 2025:
“LKQ Corporation (Nasdaq: LKQ) is the largest spare parts distributor for recycled and after -sales cars in the United States and Europe. It is a accumulated success story. In the US, the company focuses on collision products (for example, headlights, fenders, bumpers, paintings). In Europe, the offer of spare parts of LKQ is mainly mechanical (for example, engines, brakes, suspension). Unlike other important auto parts distributors, LKQ obtains a significant percentage of its pieces recycling old vehicles bought in auctions and stored in the company’s scrap deposits. The sale of auto parts for damaged vehicles has generally been a recession resistant business. The demand is promoted by several factors, including the number of reparable car insurance claims, inflation and complexity of the parts, aging and size of the car park, the will of insurers to use parts that are not OEM and structural trends such as technology to avoid accidents and change to electronic vehicles.
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