FPA Queens Road on Concentrix (CNXC): “We like the Investment Opportunity the Company Offers”

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned 23.2% in 2021. This compares to a 28.3% return for the Russell 2000 Value Index during the year. During the fourth quarter, the Russell 2000 Value Index rallied sharply early, fell off sharply from early November through mid-December, and then rallied during the last two weeks of the year to finish up 4.4%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

FPA Queens Road Small Cap Value Fund, in its Q4 2021 investor letter, mentioned Concentrix Corporation (NASDAQ: CNXC) and discussed its stance on the firm. Concentrix Corporation is a Fremont, California-based business services company with a $10.4 billion market capitalization. CNXC delivered a 12.23% return since the beginning of the year, while its 12-month returns are up by 63.13%. The stock closed at $200.46 per share on March 03, 2022.

Here is what FPA Queens Road Small Cap Value Fund has to say about Concentrix Corporation in its Q4 2021 investor letter:

“Concentrix, a customer experience solutions provider, spun off from one of our other portfolio holdings (Synnex) in December of 2020, continued to validate its value proposition by adding over 24 new clients in the fourth quarter, continuing a trend. The company, which expects to achieve above-average market growth and improved margins, initiated a dividend during the year. Given the company’s growth expectations and what we believe to be a very reasonable valuation, we like the investment opportunity the company offers.”

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Our calculations show that Concentrix Corporation (NASDAQ: CNXC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CNXC was in 23 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 21 funds in the previous quarter. Concentrix Corporation (NASDAQ: CNXC) delivered a 17.86% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on CNXC in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.