FPA Queens Road Small Cap Value Fund’s Comments on Treehouse Foods (THS)

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 TreeHouse Foods, Inc. (NYSE:THS). TreeHouse Foods, Inc. (NYSE:THS) is a manufacturer and distributor of private brand snacks and beverages. The one-month return of TreeHouse Foods, Inc. (NYSE:THS) was -12.37%, and its shares lost 53.82% of their value over the last 52 weeks. On August 18, 2025, TreeHouse Foods, Inc. (NYSE:THS) stock closed at $18.27 per share, with a market capitalization of $922.635 million.

FPA Queens Road Small Cap Value Fund stated the following regarding TreeHouse Foods, Inc. (NYSE:THS) in its second quarter 2025 investor letter:

“TreeHouse Foods, Inc. (NYSE:THS) manufactures private label packaged foods, mostly for grocery chains. The company makes everything from crackers to broths to pickles to cheese. THS never found its footing after levering up for the acquisition of ConAgra’s private label business in 2016, and growth and margins have been inconsistent ever since. Over the last year, continued supply chain and operational issues have weighed on the company’s profitability and stock price. THS was a relatively small position in the Fund and we have been reducing the position.”

A hand holding a bright red jar of mayonnaise against a white studio background, reflecting the company’s range of products.

TreeHouse Foods, Inc. (NYSE:THS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held TreeHouse Foods, Inc. (NYSE:THS) at the end of the first quarter, which was 15 in the previous quarter. While we acknowledge the risk and potential of TreeHouse Foods, Inc. (NYSE:THS) 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 TreeHouse Foods, Inc. (NYSE:THS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.