Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” Q3 2026 investor letter. A copy of the letter can be downloaded here. The Fund returned -7.62% in the third quarter of 2026, underperforming the Russell 2000 Value Index, which fell 4.91%. However, the Fund’s year-to-date return of 17.35% exceeded the benchmark’s 16.96%. Portfolio managers attributed the quarterly underperformance primarily to the Fund’s lack of exposure to Energy and Healthcare, and weakness in consumer discretionary holdings. They noted that recent small-cap gains had been driven largely by speculative stocks, including loss-making companies and biotechnology businesses, while profitable small-cap companies continued to trade at attractive valuations relative to larger peers. During the quarter, the fund reduced its exposure to appreciated technology stocks and invested in established businesses with sound fundamentals and reasonable valuations. Looking ahead, the managers acknowledged continued market volatility but remained confident in the Fund’s long-term prospects, emphasizing that discipline, patience, and a focus on business fundamentals would help the portfolio navigate speculative market conditions. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its third-quarter 2026 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks like Terex Corporation (NYSE:TEX). Terex Corporation (NYSE:TEX) manufactures specialty vehicles and equipment, including fire trucks, ambulances, waste and recycling trucks, materials processing equipment, utility trucks, and aerial work platforms. The one-month return of Terex Corporation (NYSE:TEX) was 2.29% while its shares traded between $41.70 and $74.69 over the last 52 weeks. On October 30, 2026, Terex Corporation (NYSE:TEX) stock closed at approximately $56.15 per share, with a market capitalization of about $6.52 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding Terex Corporation (NYSE:TEX) in its Q3 2026 investor letter:

“Terex Corporation (NYSE:TEX) is a specialty vehicle manufacturer that makes fire trucks and ambulances, waste and recycling trucks, materials processing equipment, utility trucks, and aerials. We acquired shares when the company acquired Fund holding Rev Group (REVG) in a stock and cash deal. CEO Simon Meester has done a good job upgrading the portfolio and the company is currently in the process of selling its more cyclical aerials business. We think shares are attractively priced at roughly 11x this year’s earnings.”