FPA Queens Road Small Cap Value Fund on Littelfuse, Inc.
Thesis
Littelfuse manufactures specialized electrical protection, sensing and semiconductor products. The fund praises operating margins in the high teens, strong capital returns, moderate organic growth and acquisition capabilities. It benefited from order recovery and incremental data-center sales, though the managers trimmed after a doubling in the share price.
“Operating margins are in the high teens and returns on capital are strong.”
Key risks
- Cyclical industrial and electronics end markets
- Tariff disruption
- Acquisitions and recent strong appreciation could limit future returns