FPA Queens Road Small Cap Value Fund on Arrow Electronics, Inc.

Arrow is the world's largest semiconductor distributor and benefits from scale, broad product availability and relatively stable competitive dynamics. Its products are established technologies used across a diverse set of end markets, limiting product-obsolescence risk while allowing long-term growth alongside electrification and technology spending. The fund added materially during the industry downturn and tariff-related weakness, before the subsequent cyclical recovery and incremental data-center demand. Arrow also used strong prior-cycle cash flow to retire roughly one-third of its shares. After a large rally the fund has trimmed, but at roughly ten times forward earnings it still considers Arrow attractive enough to remain a substantial holding.