Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. In a volatile but positive quarter, the FPA Queens Road Small Cap Value Fund (“Fund”) returned 6.07%, beating the Russell 2000 Value Index’s 4.96%. The Fund expects better performance in down markets and underperformance in speculative ones due to its disciplined approach. Amid ongoing global commodity shocks, political issues, and economic fallout from the Iran conflict, the letter discusses small-caps and the firm’s long-term investment strategy. In Q1, the fund continued to rebalance the portfolio towards higher-quality holdings, focusing on balance sheet strength, earnings consistency, and returns on capital. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks like Graphic Packaging Holding Company (NYSE:GPK). Graphic Packaging Holding Company (NYSE:GPK) is a leading consumer packaging company that serves brands in food, beverage, foodservice, household, and other consumer products. On May 11, 2026, Graphic Packaging Holding Company (NYSE:GPK) closed at $10.22 per share. One-month return of Graphic Packaging Holding Company (NYSE:GPK) was 5.14%, and its shares lost 56.04% over the past 52 weeks. Graphic Packaging Holding Company (NYSE:GPK) has a market capitalization of $3.02 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding Graphic Packaging Holding Company (NYSE:GPK) in its Q1 2026 investor letter:
“Graphic Packaging Holding Company (NYSE:GPK) is a vertically integrated paper packaging manufacturer with plants in the U.S. and Europe. The company is suffering from a combination of weak industry fundamentals, massive cost overruns at its new Waco, TX recycled paperboard plant, and too much debt. In October, CFO Stephen Scherger left to join Amcor and then in December, long-time CEO Mike Doss left under acrimonious circumstances.12 We are not enthused about the current situation and currently hold a less than 50 bp position in GPK.”
Graphic Packaging Holding Company (NYSE:GPK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held Graphic Packaging Holding Company (NYSE:GPK) at the end of the fourth quarter, up from 48 in the previous quarter. In Q1 2026, Graphic Packaging Holding Company’s (NYSE:GPK) net sales increased 2% year-over-year to $2.2 billion. While we acknowledge the risk and potential of Graphic Packaging Holding Company (NYSE:GPK) 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 Graphic Packaging Holding Company (NYSE:GPK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Graphic Packaging Holding Company (NYSE:GPK) and shared the list of most undervalued stocks under $10 to buy. In addition, please check out our hedge fund investor letters Q1 2026 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.
