Should You Hold IAC Inc (IAC)?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.46% compared to a 12.60% return for the Russell 2000 Value Index. In the first three quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s focus is on a diligent, disciplined, and patient process, it expects the fund to outperform in down markets and trail in speculative markets. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, the FPA Queens Road Small Cap Value Fund highlighted stocks such as IAC Inc. (NASDAQ:IAC). IAC Inc. (NASDAQ:IAC) is a leading media and internet company. The one-month return of IAC Inc. (NASDAQ:IAC) was -2.82%, and its shares lost 18.26% of their value over the last 52 weeks. On November 21, 2025, IAC Inc. (NASDAQ:IAC) stock closed at $32.70 per share, with a market capitalization of $2.621 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding IAC Inc. (NASDAQ:IAC) in its third quarter 2025 investor letter:

“IAC Inc. (NASDAQ:IAC) is a consumer technology conglomerate founded and helmed by Barry Diller. The company has a history of incubating consumer technology brands and then spinning them off to realize value – past spin offs include Expedia, Live Nation, TripAdvisor, Match Group and Angi (which was spun off earlier this year). Today’s IAC is following the same playbook and owns DotDash Meredith, a collection of media websites including People, Allrecipes , and Better Homes & Gardens; 24% of publicly traded MGM Resorts International, a casino operator; 32% of Turo, an auto sharing network; Care.com ; and Vivian, a job website for healthcare workers. The market is reluctant to ascribe a full valuation to IAC on a “sum of the parts” basis while the company is suppressing cash flow to make investments, and there is no current stated plan to realize value by spinning or selling assets. We believe that the asset value at IAC exceeds the share price and that the company has a history of value realization over the long term. We continue to hold IAC as a midsized position in the portfolio.”

IAC Inc. (IAC): Among Billionaire Glenn Russell Dubin’s Stock Picks with Huge Upside Potential

IAC Inc. (NASDAQ:IAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held IAC Inc. (NASDAQ:IAC) at the end of the second quarter, up from 43 in the previous quarter.  While we acknowledge the risk and potential of IAC Inc. (NASDAQ:IAC) 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 IAC Inc. (NASDAQ:IAC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered IAC Inc. (NASDAQ:IAC) and shared the list of stocks posted hefty double-digit losses. In addition, please check out our hedge fund investor letters Q3 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.