FPA Queens Road on Fabrinet (FN): “We are Impressed by the Company’s Execution”

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 Fabrinet (NYSE: FN) and discussed its stance on the firm. Fabrinet is a Cayman Islands-based telecommunications company with a $3.6 billion market capitalization. FN delivered a -16.60% return since the beginning of the year, while its 12-month returns are up by 16.06%. The stock closed at $98.80 per share on March 03, 2022.

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

Fabrinet, a manufacturer of optical communications sensors and equipment, announced better-thanexpected results on increased demand for its telecom and datacom products, despite continuing supply chain disruptions. While supply chain issues had a significant impact on the company’s automotive business, it was less than expected (automotive is a small but growing market for the company). We are impressed by the company’s execution and held a 3.4% position at quarter end.”

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Our calculations show that Fabrinet (NYSE: FN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FN was in 24 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 18 funds in the previous quarter. Fabrinet (NYSE: FN) delivered a -16.04% return in the past 3 months.

In August 2021, we published an article that includes FN in the 10 Stocks that Crushed Earnings Expectations. You can find more than 100 investor 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.