What Makes Rogers Corporation (ROG) an Investment Choice?

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Small-Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 7.18% compared to 8.97% for the MSCI USA Small-Cap Value Index (the “Index”) and 12.60% return for the Russell 2000 Value Index. Positive contributions from a wide range of businesses led the fund’s performance in the quarter. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks such as Rogers Corporation (NYSE:ROG). Rogers Corporation (NYSE:ROG) is an engineered materials and components manufacturer and distributor. The one-month return of Rogers Corporation (NYSE:ROG) was 1.84%, and its shares lost 23.49% of their value over the last 52 weeks. On November 5, 2025, Rogers Corporation (NYSE:ROG) stock closed at $85.68 per share, with a market capitalization of $1.541 billion.

Third Avenue Small-Cap Value Fund stated the following regarding Rogers Corporation (NYSE:ROG) in its third quarter 2025 investor letter:

"During the quarter, the Fund initiated new positions in electronic and materials technology solutions provider, Rogers Corporation (NYSE:ROG) (“Rogers”), headquartered in Chandler, Arizona, manufactures a portfolio of electronic and materials technology solutions for a wide range of industrial applications. Broadly speaking, the company operates in two segments, Advanced Electronic Solutions, which designs and manufactures substrates, interconnects and circuit materials, and Elastomeric Material Solutions, which provides urethane and silicon materials solutions to its customers. The company operates globally and serves customers such as electric vehicle manufacturers, aerospace companies, clean energy companies, portable electronics, and a wide range of industrial customers.

It is our view that Rogers has a valuable portfolio of intellectual property and technical expertise that it utilizes to create tailored industrial solutions for its customers. It also appears that Rogers serves a number of attractive and growing end markets. We believe this perception was shared by Dupont when the company attempted to purchase Rogers in 2021 for more than three times its current share price. However, since that period the company has struggled to grow, its manufacturing footprint has not adjusted well to geographic changes in its end markets and, it appears that the company would be well served to foster some cultural changes to enhance its competitive spirit.

Further, our team began initial research on the company more than a year ago, though it had not resulted in any activity until recently. During the past year, however, the company’s share price continued to weaken meaningfully, even while the company has been increasingly influenced by a long-term activist investor, its board has seen a substantial reconstitution, and its CEO was recently replaced by the new board. In our view, recent announcements by Rogers’ management reflect a new sense of urgency in adjusting its manufacturing footprint and substantial opportunity for cost savings and margin improvement. It is also notable that the company remains quite profitable, and its balance sheet holds a significant net cash position offering resources and time to implement strategic improvements and face any future resource conversion opportunity from a position of financial strength."

Rogers Corporation (NYSE:ROG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 27 hedge fund portfolios held Rogers Corporation (NYSE:ROG) at the end of the second quarter, up from 25 in the previous quarter. While we acknowledge the potential of Rogers Corporation (NYSE:ROG) 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 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.