Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned -2.51% compared to a -7.74% return for the Russell 2000 Value Index. President Trump announced his tariffs on April 2nd, causing equity markets to decline sharply and increasing volatility. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as Oshkosh Corporation (NYSE:OSK). Oshkosh Corporation (NYSE:OSK) is an industrial company, engages in the development and manufacture of purpose-built vehicles and equipment. The one-month return of Oshkosh Corporation (NYSE:OSK) was -11.01%, and its shares lost 14.85% of their value over the last 52 weeks. On May 21, 2025, Oshkosh Corporation (NYSE:OSK) stock closed at $98.48 per share with a market capitalization of $6.339 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding Oshkosh Corporation (NYSE:OSK) in its Q1 2025 investor letter:
“Oshkosh Corporation (NYSE:OSK) is a specialty vehicle manufacturer that operates across three segments – Access Equipment (JLG lifts and telehandlers), Vocational (fire trucks, airport equipment, dump trucks, etc.), and Defense (which includes the new US Postal Service trucks). The Fund has owned shares of OSK since its inception in 2002 but has added and trimmed since then. OshKosh has a long history of earnings growth and strong returns on capital. In 2024, OSK shares declined because of lowered expectations for JLG earnings. The company’s leverage is low, it has a long and successful operating history, and its shares trade at roughly eight times our estimate of normal earnings. We have incrementally added to our position.”
A worker welding an intricate frame in a factory for heavy construction machinery.
Oshkosh Corporation (NYSE:OSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Oshkosh Corporation (NYSE:OSK) at the end of the fourth quarter, compared to 33 in the third quarter. Oshkosh Corporation (NYSE:OSK) announced Q1 2025 revenue of $2.31 billion, indicating a 9% year-over-year decrease, principally attributed to reduced sales in the Access segment. While we acknowledge the potential of Oshkosh Corporation (NYSE:OSK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Oshkosh Corporation (NYSE:OSK) and shared the list of undervalued stocks to invest in according to Goldman Sachs. In addition, please check out our hedge fund investor letters Q1 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.
