Value Fund Trims Fabrinet After 107% Rally Citing $1.13B Q2 Revenue
FPA Queens Road Small Cap Value Fund trimmed Fabrinet position after its shares surged over 100% in 12 months to $462.05 on February 12, highlighting its niche dominance in optical networking and record fiscal Q2 revenue of $1.13 billion (+36% YoY). The fund still considers Fabrinet a long-term compounder.
1. Hedge Fund Performance and Fabrinet Position
FPA Queens Road Small Cap Value Fund returned -0.36% in Q4 2025 versus 3.26% for the Russell 2000 Value Index and outperformed in early 2025 before trimming its Fabrinet stake after strong share gains. The fund continues to hold Fabrinet, describing it as a potential long-term compounder.
2. Share Price Gains and Market Capitalization
Fabrinet shares closed at $462.05 on February 12, reflecting a 107.16% increase over the past year and a one-month decline of 6.55%, giving the company a market capitalization of $16.554 billion.
3. Record Q2 Fiscal 2026 Revenue
The company reported $1.13 billion in Q2 revenue, marking a 36% year-over-year increase and representing its highest quarterly top line on record.
4. Business Outlook and AI Data Center Demand
Fabrinet dominates optical networking and precision manufacturing for high-bandwidth modules, with Nvidia accounting for 10% of sales, and stands to benefit from rising data center spending on AI training infrastructure.