FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” first-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned -3.3% in the first quarter of 2022. This compares to a -2.2% return for the Russell 2000 Value Index in the same period. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, FPA Queens Road mentioned Synaptics Incorporated (NASDAQ:SYNA) and explained its insights for the company. Founded in 1986, Synaptics Incorporated (NASDAQ:SYNA) is a San Jose, California-based hardware company with a $5.7 billion market capitalization. Synaptics Incorporated (NASDAQ:SYNA) delivered a -49.85% return since the beginning of the year, while its 12-month returns are up by 12.32%. The stock closed at $145.19 per share on June 01, 2022.
Here is what FPA Queens Road has to say about Synaptics Incorporated (NASDAQ:SYNA) in its Q1 2022 investor letter:
“In technology, Synaptics (NASDAQ:SYNA), one of the Fund’s best-performing holdings last year, fell precipitously during the quarter. We sold part of the position during the 4th quarter of last year and additionally trimmed shares in January. While we feel great about Synaptics’s long-term prospects, we were concerned with the company’s valuation even though operating performance has improved considerably over the last two years. At the current reduced valuation, the company appears attractive.
Synaptics has continued its strategic shift to higher-margin business, primarily Internet of Things (IOT) products. While the strategic plan has been well executed, we have trimmed the Fund’s position over the last several months due to valuation. During the first quarter, Synaptics’s stock price fell 31%. While increased uncertainty on global growth has tempered our near-term expectations, we believe the current valuation is attractive and remain confident in the company’s long-term prospects.”
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Our calculations show that Synaptics Incorporated (NASDAQ:SYNA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Synaptics Incorporated (NASDAQ:SYNA) was in 31 hedge fund portfolios at the end of the first quarter of 2022, compared to 23 funds in the previous quarter. Synaptics Incorporated (NASDAQ:SYNA) delivered a -34.58% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
