FPA Queens Road Small Cap Value Fund's Updates on CSG Systems (CSGS)

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund returned -0.36% in Q4 2025, compared to the Russell 2000 Value Index’s 3.26%. In 2025, the Fund has returned 13.36% compared to 12.59% gain for the Index. The Fund outperformed in the first half of 2025, when markets were weak and volatile. However, in the second half of 2025, markets favored speculative and low-quality stocks, leading to the Fund’s underperformance. The portfolio is designed to protect clients from market drawdowns by focusing on quality and value. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks like CSG Systems International, Inc. (NASDAQ:CSGS). CSG Systems International, Inc. (NASDAQ:CSGS) is a technology company that provides solutions for customer engagement, revenue management, and billing primarily for the communication industry. On February 12, 2026, CSG Systems International, Inc. (NASDAQ:CSGS) stock closed at $79.61 per share. One-month return of CSG Systems International, Inc. (NASDAQ:CSGS) was 0.01%, and its shares are up 24.10% over the past twelve months. CSG Systems International, Inc. (NASDAQ:CSGS) has a market capitalization of $2.271 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding CSG Systems International, Inc. (NASDAQ:CSGS) in its fourth quarter 2025 investor letter:

"CSG Systems International, Inc. (NASDAQ:CSGS) makes software that manages customer relationships and billing for telecom companies. Under CEO Brian Shephard, the company has done an admirable job adding geographic and customer diversification. On October 29, NEC Corp, the parent of competitor Netcracker, announced that it was acquiring CSGS for $80.70 per share."

CSG Systems International, Inc. (NASDAQ:CSGS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 18 hedge fund portfolios held CSG Systems International, Inc. (NASDAQ:CSGS) at the end of the third quarter, compared to 24 in the previous quarter. While we acknowledge the potential of CSG Systems International, Inc. (NASDAQ:CSGS) 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 another article, we covered CSG Systems International, Inc. (NASDAQ:CSGS) and shared FPA Queens Road Small Cap Value Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.