Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund returned -0.36% in Q4 2025, compared to the Russell 2000 Value Index’s 3.26%. In 2025, the Fund has returned 13.36% compared to 12.59% gain for the Index. The Fund outperformed in the first half of 2025, when markets were weak and volatile. However, in the second half of 2025, markets favored speculative and low-quality stocks, leading to the Fund’s underperformance. The portfolio is designed to protect clients from market drawdowns by focusing on quality and value. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks like ServisFirst Bancshares, Inc. (NYSE:SFBS). ServisFirst Bancshares, Inc. (NYSE:SFBS). ServisFirst Bancshares, Inc. (NYSE:SFBS) is a bank holding company for ServisFirst Bank that offers various banking services. The one-month return of ServisFirst Bancshares, Inc. (NYSE:SFBS) was 10.03%, and its shares lost 2.72% of their value over the last 52 weeks. On February 12, 2026, ServisFirst Bancshares, Inc. (NYSE:SFBS) stock closed at $86.11 per share with a market capitalization of $4.704 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding ServisFirst Bancshares, Inc. (NYSE:SFBS) in its fourth quarter 2025 investor letter:
“ServisFirst Bancshares, Inc. (NYSE:SFBS) is a conservatively run lending franchise helmed by Tom Broughton. Tom hires local bankers but doesn’t build branches – this allows for best-in-class efficiency metrics while maintaining a strong and conservative lending culture. Return on equity (ROE) and average earnings per share growth were near 20% for the 10 years through 2024 – very attractive for a conservative, plain vanilla commercial lender. 26 We think that SFBS trailed the regional bank indices in 2025 because of its concentrated exposure to South-Eastern real estate, a large Q3 non-accrual for which the bank obtained additional collateral and disappointing Q3 loan growth. 27 We have followed the company for years and are extremely comfortable continuing to hold SFBS in our top 10 holdings.”
ServisFirst Bancshares, Inc. (NYSE:SFBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 17 hedge fund portfolios held ServisFirst Bancshares, Inc. (NYSE:SFBS) at the end of the third quarter, compared to 20 in the previous quarter.While we acknowledge the risk and potential of SERVISFIRST BANCSHARES, INC. (NYSE:SFBS) 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 SERVISFIRST BANCSHARES, INC. (NYSE:SFBS) 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 Q4 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.
