InterDigital Shares at $356.83, 66.5% Annual Gain Drives FPA Fund Trim
FPA Queens Road Small Cap Value Fund’s Q4 2025 letter cited InterDigital as a top-five holding, highlighting its $356.83 closing share price Feb 12, 15.6% one-month gain, 66.5% 12-month gain and $9.19 billion market cap. The fund praised its recurring licensing revenues, buybacks and trimmed early 2026 position on valuation.
1. FPA Fund Letter Highlights
In its fourth-quarter 2025 letter, the FPA Queens Road Small Cap Value Fund reported a –0.36% return versus a 3.26% gain for the Russell 2000 Value Index and a 13.36% full-year gain versus the index’s 12.59%. InterDigital ranked among the fund’s top five holdings, reflecting the portfolio’s focus on quality and value despite challenging market conditions.
2. Stock Performance and Hedge Fund Interest
InterDigital shares closed at $356.83 on February 12, posting a 15.6% increase over one month and a 66.5% rise over the past year, boosting its market capitalization to $9.19 billion. Institutional interest grew as hedge funds increased their positions to 35 portfolios, up from 32 in the prior quarter.
3. Licensing Revenue, Buybacks and Valuation
The fund highlighted InterDigital’s steady licensing revenues across wireless, IoT and automotive applications, driven by patent renewals with Apple in 2022 and Samsung in 2023. Management’s opportunistic share repurchases and modest dividend support cash returns, but elevated valuation prompted the fund to trim its position in early 2026.