First Pacific Advisors released its third-quarter 2025 investor letter for the FPA Queens Road Small Cap Value Fund, which returned 7.46% in Q3 and 13.77% for the year, outperforming the Russell 2000 Value Index. The firm’s focus on diligence and discipline aims to outperform in down markets and trail in speculative markets.

InterDigital, Inc. (NASDAQ: IDCC) was highlighted in the FPA Queens Road Small Cap Value Fund’s Q3 letter, with a one-month return of 15.30% and 69.03% increase over the last 52 weeks. IDCC focuses on wireless, visual, and AI technologies, closing at $327.63 per share on November 21, 2025, with a market cap of $8.454 billion.

The FPA Queens Road Small Cap Value Fund noted InterDigital, Inc. (NASDAQ: IDCC) as a strong performer in R&D, with a history of financial success, share buybacks, and dividend payouts. The company’s CEO, Liren Chen, has driven growth through successful licensing agreements, revenue increases, and profitability, prompting the fund to trim its position.

Despite InterDigital, Inc. (NASDAQ: IDCC) not being among the 30 Most Popular Stocks Among Hedge Funds, it reported nearly $590 million in revenue for Q3 2025, a 49% year-over-year increase. While acknowledging IDCC’s potential, hedge funds see greater upside in certain AI stocks with lower downside risk, offering opportunities for investors seeking undervalued AI stocks.

Read more at Yahoo Finance: Here’s Why InterDigital (IDCC) Rallied Over the Past Year