FPA Queens Road Small Cap Value Fund Increased Its Holdings in Scholastic (SCHL)

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 8.60% compared to a 4.97% return for the Russell 2000 Value Index. Moreover, the Fund returned 5.87% YTD, compared to -3.16% for the index. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as Scholastic Corporation (NASDAQ:SCHL). Scholastic Corporation (NASDAQ:SCHL) engages in the publishing and distribution of children’s books worldwide. The one-month return of Scholastic Corporation (NASDAQ:SCHL) was 18.55%, and its shares lost 15.31% of their value over the last 52 weeks. On August 18, 2025, Scholastic Corporation (NASDAQ:SCHL) stock closed at $25.88 per share, with a market capitalization of $649.598 million.

FPA Queens Road Small Cap Value Fund stated the following regarding Scholastic Corporation (NASDAQ:SCHL) in its second quarter 2025 investor letter:

“Scholastic Corporation (NASDAQ:SCHL) is an educational publishing company that runs eponymous book fairs in America’s K-12 schools. We first bought shares in 2008 and have added a little over time. Over 15 years, results have been volatile as Scholastic has never been able to translate its name brand, publishing assets, or forays into adjacent markets into consistent earnings. The company has always traded at a discount compared to its economic earnings potential. It also owns prime New York City real estate that we estimate to be worth $300 – $400 million. Poor performance at the company’s book fairs caused the stock to drop 20% following results on July 19, 2024 and another 20% following results reported on December 20, 2024. We’ve added to our position on this weakness.”

A diverse group of children gathered in a bookstore perusing through a variety of titles.

Scholastic Corporation (NASDAQ:SCHL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Scholastic Corporation (NASDAQ:SCHL) at the end of the first quarter, which was 14 in the previous quarter. Scholastic Corporation’s (NASDAQ:SCHL) revenue increased 7% to $508.3 million in the fiscal fourth quarter of 2025. While we acknowledge the risk and potential of Scholastic Corporation (NASDAQ:SCHL) 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 Scholastic Corporation (NASDAQ:SCHL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Scholastic Corporation (NASDAQ:SCHL) and shared FPA Queens Road Small Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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