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 TD SYNNEX Corporation (NYSE:SNX). TD SYNNEX Corporation (NYSE:SNX) is a leading distributor and solutions aggregator for the information technology (IT) ecosystem. On May 8, 2026, TD SYNNEX Corporation (NYSE:SNX) closed at $239.07 per share. One-month return of TD SYNNEX Corporation (NYSE:SNX) was 19.51%, and its shares gained 96.51% over the past 52 weeks. TD SYNNEX Corporation (NYSE:SNX) has a market capitalization of $19.52 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding TD SYNNEX Corporation (NYSE:SNX) in its Q1 2026 investor letter:
“TD SYNNEX Corporation (NYSE:SNX) is the largest IT distributor globally. The company has done a good job diversifying away from its historical position in hardware (PCs, peripherals, servers, networking equipment, etc.) and into software, security and services. TD Synnex is modestly levered and uses its cash flow to repurchase shares and pay dividends. The company reported blow-out earnings on Mar 31, which caused the stock price to jump.10 We think that TD Synnex is exceptionally well run, has scale and scope advantages against smaller competitors and that profits will continue to grow with IT spending at a GDP+ rate. SNX trades at roughly 11x forward earnings and continues to be a top 5 holding for the Fund.”
TD SYNNEX Corporation (NYSE:SNX) 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 TD SYNNEX Corporation (NYSE:SNX) at the end of the fourth quarter, up from 35 in the previous quarter. While we acknowledge the risk and potential of TD SYNNEX Corporation (NYSE:SNX) 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 TD SYNNEX Corporation (NYSE:SNX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered TD SYNNEX Corporation (NYSE:SNX) and shared the list of under-the-radar picks from David Einhorn that are quietly dominating 2026. FPA Queens Road Small Cap Value Fund initiated a position in TD SYNNEX Corporation (NYSE:SNX) in Q4 2025. 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.
