Funding administration firm First Pacific Advisors not too long ago launched its “FPA Queens Highway Small Cap Worth Fund” second-quarter 2025 investor letter. A duplicate of the letter could be downloaded right here. Within the second quarter, the fund returned 8.60% in comparison with a 4.97% return for the Russell 2000 Worth Index. Furthermore, the Fund returned 5.87% YTD, in comparison with -3.16% for the index. Moreover, you may test the fund’s prime 5 holdings to find out its greatest picks for 2025.
In its second-quarter 2025 investor letter, FPA Queens Highway Small Cap Worth Fund highlighted shares resembling PVH Corp. (NYSE:PVH). PVH Corp. (NYSE:PVH) is an attire firm. The one-month return of PVH Corp. (NYSE:PVH) was -0.13%, and its shares misplaced 24.08% of their worth over the past 52 weeks. On August 18, 2025, PVH Corp. (NYSE:PVH) inventory closed at $76.24 per share with a market capitalization of $3.665 billion.
FPA Queens Highway Small Cap Worth Fund said the next concerning PVH Corp. (NYSE:PVH) in its second quarter 2025 investor letter:
“PVH Corp. (NYSE:PVH) is an attire firm that owns the Tommy Hilfiger and Calvin Klein manufacturers globally. Most of PVH’s earnings come from Europe, the place the Tommy and Calvin manufacturers are thought of “virtually luxurious” and the place PVH has demonstrated excessive single-digit natural development with pricing energy over the previous decade. CEO Stefan Larsson has carried out a superb job revitalizing the corporate and bettering margins at PVH’s moribund U.S. operations. Within the firm’s most up-to-date fiscal 12 months (ending January 31, 2025), comparable income was down 2% as the corporate bumped right into a weaker international shopper and actively cleaned up its channel stock in Europe. Traders are skittish about tariffs and, in 2024, PVH was added to China’s “Unreliable Entity” listing threatening the roughly 15% of the corporate’s profitability that comes from China. PVH’s gross sales and sourcing are globally diversified, and the corporate makes use of its prodigious money stream to purchase again shares. We expect shares are low cost at roughly 6x trailing earnings.”
A buyer attempting on a sports activities jacket in-store, showcasing the corporate’s sportswear vary.
PVH Corp. (NYSE:PVH) is just not on our listing of 30 Most In style Shares Amongst Hedge Funds. As per our database, 35 hedge fund portfolios held PVH Corp. (NYSE:PVH) on the finish of the primary quarter, which was 28 within the earlier quarter. Whereas we acknowledge the potential of PVH Corp. (NYSE:PVH) as an funding, we consider sure AI shares supply better upside potential and carry much less draw back threat. For those who’re searching for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
