FPA Queens Road Small Cap Value Fund on Simpson Manufacturing Co., Inc.
Thesis
Simpson occupies a dominant position in structural connectors, anchors, fasteners and related residential construction products. It has gained market share over time while expanding its business across products and geographies. The position reflects the fund preference for established businesses whose valuations have been overlooked.
“The company has an exceptional history of market share gains while extending its franchise into new products and geographies.”
Key risks
- Exposure to residential housing construction
- New product and geographic expansion may not sustain historical market-share gains