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 stocks like Concentrix Corporation (NASDAQ:CNXC). Concentrix Corporation (NASDAQ:CNXC) is a leading customer experience solutions provider offering optimization, technology innovation and design engineering, front- and back-office automation, analytics, and business transformation services to clients in various industry verticals. On May 11, 2026, Concentrix Corporation (NASDAQ:CNXC) closed at $23.24 per share. One-month return of Concentrix Corporation (NASDAQ:CNXC) was -17.82%, and its shares lost 57.88% over the past 52 weeks. Concentrix Corporation (NASDAQ:CNXC) has a market capitalization of $1.42 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding Concentrix Corporation (NASDAQ:CNXC) in its Q1 2026 investor letter:
“Concentrix Corporation (NASDAQ:CNXC) is one of two top customer experience (CX) vendors globally. The company began by managing call centers but has since evolved into a high-tech business process outsourcer (BPO) that also designs and runs customer-facing websites and apps, integrates the data, and optimizes a client’s customer interactions. The March, 2023 acquisition of WebHelp helped consolidate the industry but left the company with roughly three turns of debt. Over the past two years, growth and margins have declined, and the market is concerned that Concentrix’s core businesses are being disrupted by AI. The company trades at very low valuation multiples, but we share the market’s concern and currently hold less than 50 bps of CNXC.”
Concentrix Corporation (NASDAQ:CNXC) 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 Concentrix Corporation (NASDAQ:CNXC) at the end of the fourth quarter, up from 23 in the previous quarter. In Q1 2026, Concentrix Corporation (NASDAQ:CNXC) reported revenue of approximately $2.5 billion, an increase of 1.9% on a constant currency basis and over 5% on a reported basis. While we acknowledge the risk and potential of Concentrix Corporation (NASDAQ:CNXC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Concentrix Corporation (NASDAQ:CNXC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Concentrix Corporation (NASDAQ:CNXC) and shared the list of best all-time low stocks to buy in 2026. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
