The FPA Queens Road Small Cap Value Fund has recently integrated EPlus Inc. into its investment portfolio, a move detailed in its fourth-quarter 2025 investor letter. This decision underscores the fund's strategy of focusing on robust, quality companies, particularly those within the small-cap value sector. EPlus, recognized for its strong management and significant cash holdings, presented an attractive valuation despite broader market preferences shifting towards speculative assets in the latter half of 2025. The fund's careful selection process aims to safeguard client investments against market downturns by prioritizing companies with inherent value and stability. This strategic addition reflects a commitment to long-term growth and capital preservation.
EPlus Inc. stands out as a key addition, offering comprehensive information technology solutions that aid businesses in optimizing their IT infrastructure and supply chain operations. The company's financial performance leading up to this acquisition has shown resilience, with notable gains over the past year. While its short-term returns have seen some fluctuations, the overall trajectory indicates a strong, underlying value proposition. The inclusion of EPlus in the FPA Queens Road Small Cap Value Fund's top holdings signals confidence in its future growth potential and its ability to provide stable returns within a diversified investment framework. This strategic investment is aligned with the fund's philosophy of identifying undervalued assets with solid fundamentals.
FPA Queens Road Small Cap Value Fund's Strategic Investment in Eplus
The FPA Queens Road Small Cap Value Fund strategically added EPlus Inc. to its portfolio in the fourth quarter of 2025, as detailed in its latest investor communication. This move underscores the fund's commitment to investing in well-managed, high-quality companies within the small-cap segment. EPlus, an information technology solutions provider, was identified as a compelling opportunity due to its strong operational performance and what the fund considered an undervalued market position when accounting for its substantial cash reserves. This addition is particularly significant given the fund's stated objective of protecting client capital during market volatility by focusing on inherent value rather than speculative trends, a strategy that proved beneficial in early 2025.
EPlus Inc., a company based in Herndon, Virginia, specializes in delivering comprehensive IT solutions aimed at enhancing the efficiency of IT environments and streamlining supply chain processes for its clientele. Despite a recent monthly decline of 7.32% in its stock performance, EPlus demonstrated remarkable resilience over the longer term, achieving a 17.89% increase in value over the last 52 weeks. As of February 11, 2026, the company's shares were valued at $83.91, commanding a market capitalization of $2.148 billion. The FPA Queens Road Small Cap Value Fund's endorsement highlights EPlus's solid business model and its potential for continued growth, distinguishing it from more speculative market options and reinforcing the fund's value-oriented investment philosophy.
Eplus: A High-Quality Addition to a Value-Focused Portfolio
EPlus Inc. has been welcomed into the FPA Queens Road Small Cap Value Fund's investment lineup, lauded for its exceptional quality and robust financial health. The fund's analysis pointed to ePlus's effective management and impressive quality metrics, making it an ideal candidate for a portfolio designed to capitalize on undervalued, fundamentally strong companies. The strategic importance of this addition is amplified by the fund's defensive posture, aiming to mitigate market downturns by investing in businesses that demonstrate intrinsic value and stability, rather than chasing short-term speculative gains. This decision aligns perfectly with the fund's overarching goal of delivering consistent, long-term returns for its investors through rigorous selection.
The investment thesis for EPlus Inc. is further strengthened by its valuation, which the FPA Queens Road Small Cap Value Fund deemed attractive, especially when factoring in the company's significant cash holdings. This perspective suggests that the market may not have fully appreciated EPlus's growth prospects and underlying value. As a provider of critical IT solutions, EPlus plays a vital role in helping businesses optimize their technological infrastructure, a service that remains in high demand. The company's consistent performance, marked by its 52-week stock appreciation, underscores its operational strength and market relevance. The fund's confidence in EPlus, despite its absence from broader lists of popular hedge fund holdings, underscores a conviction in the company's long-term potential and its fit within a disciplined, value-oriented investment strategy.