In the third quarter of 2025, the FPA Queens Road Small Cap Value Fund saw a return of 7.46%, outperforming the Russell 2000 Value Index at 12.60%. The fund’s year-to-date return is 13.77%, compared to 9.04% for the index. Check out their top 5 holdings for insights on their 2025 picks.

One of the highlighted stocks in the FPA Queens Road Small Cap Value Fund is RLI Corp. (NYSE:RLI), an insurance holding company. RLI Corp. (NYSE:RLI) had a one-month return of 7.17% and shares have lost 29.74% over the last 52 weeks, closing at $63.55 per share on November 24, 2025.

RLI Corp. (NYSE:RLI) is a specialty property and casualty insurer that has shown exceptional financial performance from 2015 through 2024. Despite excess capital weighing it down, RLI has maintained an average combined ratio of 89.3% and average return on equity of 16.6%. The stock typically commands a premium valuation.

While RLI Corp. (NYSE:RLI) may not be among the 30 Most Popular Stocks Among Hedge Funds, it remains a potential investment. However, consider exploring AI stocks with greater upside potential and less downside risk. For insights on an undervalued AI stock poised to benefit from current trends, check out our free report.

Learn more about RLI Corp. (NYSE:RLI) and insights from LRT Global Opportunities Strategy in another article. For additional investor letters from hedge funds and leading investors, visit our hedge fund investor letters Q3 2025 page.

Read more at Yahoo Finance: Is RLI Corp (RLI) a Good Investment Choice?