FPA Queens Road Small Cap Value Fund's New Q2 Addition: Ingles Markets (IMKTA)

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 8.60% compared to a 4.97% return for the Russell 2000 Value Index. Moreover, the Fund returned 5.87% YTD, compared to -3.16% for the index. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as Ingles Markets, Incorporated (NASDAQ:IMKTA). Ingles Markets, Incorporated (NASDAQ:IMKTA) is a supermarket chain in the Southeast United States. The one-month return of Ingles Markets, Incorporated (NASDAQ:IMKTA) was -2.78%, and its shares lost 7.88% of their value over the last 52 weeks. On August 18, 2025, Ingles Markets, Incorporated (NASDAQ:IMKTA) stock closed at $65.47 per share, with a market capitalization of $1.244 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding Ingles Markets, Incorporated (NASDAQ:IMKTA) in its second quarter 2025 investor letter:

"We added two new positions to the Fund during the second quarter. Ingles Markets, Incorporated (NASDAQ:IMKTA) is a Southeastern regional grocery chain with roughly 200 stores. The grocery operations are well run with a focus on community and customer loyalty in underserved rural markets. In addition, Ingles is asset-rich – they own most of their properties as well as almost five million sqft. of shopping centers leased to third parties. The company has little financial debt and trades at an attractive valuation."

Ingles Markets, Incorporated (NASDAQ:IMKTA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Ingles Markets, Incorporated (NASDAQ:IMKTA) at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the potential of Ingles Markets, Incorporated (NASDAQ:IMKTA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q2 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.