FPA Queens Road Small Cap Value Fund on Littelfuse, Inc.
Thesis
Littelfuse manufactures niche electrical components including fuses, sensors, passive components and semiconductors across a broad collection of end markets. The business combines mid-single-digit organic growth with tuck-in acquisitions, high-teens operating margins and strong returns on capital. The fund added significantly during tariff-related weakness in April 2025. Since then orders and sales recovered from the post-Covid trough, the company successfully navigated tariffs and data-center demand added incremental growth. The share-price recovery changed the risk-reward, so the fund has trimmed while retaining a position.
“We significantly added to our position in April 2025 when the stock declined on tariff fears.”
Key risks
- The component cycle could weaken again
- Tariffs and supply-chain disruptions could affect margins
- Data-center demand could prove less durable than current expectations