FPA Queens Road Small Cap Value Fund Started to Trim InterDigital (IDCC)

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 InterDigital, Inc. (NASDAQ:IDCC). InterDigital, Inc. (NASDAQ:IDCC) is a global research and development company that focuses on wireless, visual, artificial intelligence (AI), and related technologies. The one-month return of InterDigital, Inc. (NASDAQ:IDCC) was 18.67%, and its shares gained 99.02% of their value over the last 52 weeks. On August 15, 2025, InterDigital, Inc. (NASDAQ:IDCC) stock closed at $268.74 per share, with a market capitalization of $6.934 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding InterDigital, Inc. (NASDAQ:IDCC) in its second quarter 2025 investor letter:

“InterDigital, Inc. (NASDAQ:IDCC) is a research and development organization that develops and acquires wireless communication and video patents. The company has a history of strong financial performance, opportunistically buys back shares, and pays a modest dividend. IDCC has been successfully renewing its wireless licensing agreements (Apple in 2022, Samsung in 2023) and has a growing stream of recurring licensing revenues across consumer electronics, internet of things (IoT), and automotive customers. CEO Liren Chen joined in 2021 from Qualcom and has been hiring other former Qualcom managers. The company’s share price has increased over the past year on growing revenue, profitability, and buybacks. We began trimming the Fund’s position this year.”

Is InterDigital, Inc. (IDCC) Among The Aggressive Stocks Picked by Hedge Funds?

A technician installing advanced cellular equipment at a 5G cell tower.

InterDigital, Inc. (NASDAQ:IDCC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held InterDigital, Inc. (NASDAQ:IDCC) at the end of the first quarter, which was 34 in the previous quarter. In the second quarter of 2025, InterDigital, Inc. (NASDAQ:IDCC) reported revenue of $300 million, which far exceeded the top end of guidance driven by the Samsung arbitration award and HP license agreement. While we acknowledge the risk and potential of InterDigital, Inc. (NASDAQ:IDCC) 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 InterDigital, Inc. (NASDAQ:IDCC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered InterDigital, Inc. (NASDAQ:IDCC) 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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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