FPA Queens Road Small Cap Value Fund’s New Q2 Addition: Ingles Markets (IMKTA)

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 Ingles Markets, Incorporated (NASDAQ:IMKTA). Ingles Markets, Incorporated (NASDAQ:IMKTA) is a supermarket chain in the Southeast United States. The one-month return of Ingles Markets, Incorporated (NASDAQ:IMKTA) was -2.78%, and its shares lost 7.88% of their value over the last 52 weeks. On August 18, 2025, Ingles Markets, Incorporated (NASDAQ:IMKTA) stock closed at $65.47 per share, with a market capitalization of $1.244 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding Ingles Markets, Incorporated (NASDAQ:IMKTA) in its second quarter 2025 investor letter:

“We added two new positions to the Fund during the second quarter. Ingles Markets, Incorporated (NASDAQ:IMKTA) is a Southeastern regional grocery chain with roughly 200 stores. The grocery operations are well run with a focus on community and customer loyalty in underserved rural markets. In addition, Ingles is asset-rich – they own most of their properties as well as almost five million sqft. of shopping centers leased to third parties. The company has little financial debt and trades at an attractive valuation.”

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An aisle lined with shelves of fresh and frozen foods in a supermarket store.

Ingles Markets, Incorporated (NASDAQ:IMKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Ingles Markets, Incorporated (NASDAQ:IMKTA) at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the risk and potential of Ingles Markets, Incorporated (NASDAQ:IMKTA) 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 Ingles Markets, Incorporated (NASDAQ:IMKTA) 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.