First Pacific Advisors released its second-quarter 2025 investor letter for the FPA Queens Road Small Cap Value Fund, showing an 8.60% return compared to the Russell 2000 Value Index’s 4.97%. Scholastic Corporation (NASDAQ:SCHL) was highlighted, with a one-month return of 18.55% and a market capitalization of $649.598 million.

In the letter, FPA Queens Road Small Cap Value Fund discussed their investment in Scholastic Corporation (NASDAQ:SCHL), an educational publishing company with volatile earnings. Despite holding shares since 2008, the company has struggled to translate its assets into consistent earnings. The stock dropped 20% following poor performance in book fairs.

Scholastic Corporation (NASDAQ:SCHL) saw a 7% increase in revenue to $508.3 million in the fiscal fourth quarter of 2025. While 21 hedge fund portfolios held SCHL at the end of the first quarter, it was not among the 30 most popular stocks among hedge funds. Some AI stocks may offer greater upside potential with less downside risk than SCHL.

Read more at Yahoo Finance: FPA Queens Road Small Cap Value Fund Increased Its Holdings in Scholastic (SCHL)