Investment management firm First Pacific Advisors recently released its Q3 2025 investor letter “FPA Queens Road Small Cap Value Fund.” A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.46%, compared to 12.60% for the Russell 2000 Value Index. In the first three quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the company focuses on a diligent, disciplined and patient process, it expects the fund to outperform in bear markets and underperform in speculative markets. Additionally, you can check out the fund’s top five holdings to determine your best picks for 2025.
In its Q3 2025 investor letter, the FPA Queens Road Small Cap Value Fund highlighted stocks like IAC Inc. (NASDAQ:IAC). IAC Inc. (NASDAQ:IAC) is a leading media and Internet company. IAC Inc. (NASDAQ:IAC)’s monthly performance was -2.82% and its shares lost 18.26% of its value in the last 52 weeks. On November 21, 2025, IAC Inc. (NASDAQ:IAC) stock closed at $32.70 per share, with a market capitalization of $2.621 million.
FPA Queens Road Small Cap Value Fund stated the following regarding IAC Inc. (NASDAQ:IAC) in its Q3 2025 investor letter:
“IAC Inc. (NASDAQ:IAC) is a consumer technology conglomerate founded and led by Barry Diller. The company has a history of incubating consumer technology brands and then spinning them off to generate value; Previous spinoffs include Expedia, Live Nation, TripAdvisor, Match Group and Angi (which was spun off earlier this year). The current IAC follows the same playbook and owns DotDash Meredith, a collection of media websites including People, Allrecipes and Better Homes & Gardens; 24% of MGM Resorts International, a publicly traded casino operator; 32% of Turo, a car-sharing network; Care.com; and Vivian, an employment website for healthcare workers. The market is reluctant to attribute a full valuation to IAC on a “sum of the parts” basis while the company is suppressing cash flow to make investments, and there is no currently stated plan to realize value through asset turnover or sales. We believe that the value of the assets in IAC exceeds the share price and that the company has a track record of realizing value over the long term. “We continue to hold IAC as a mid-sized position in the portfolio.”
IAC Inc. (NASDAQ:IAC) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 46 hedge fund portfolios held IAC Inc. (NASDAQ:IAC) at the end of the second quarter, up from 43 in the previous quarter. While we recognize the potential of IAC Inc. (NASDAQ:IAC) as an investment, we believe certain IA stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.