FPA Queens Road Small Cap Value Fund on Upbound Group, Inc.

Upbound serves subprime consumers through Rent-A-Center, Acima and the recently acquired Brigit platform. Its customers are under financial pressure, but the company's operating results have remained relatively stable. The stock trades at less than five times earnings, creating substantial apparent valuation support. The fund has nevertheless been reluctant to add aggressively because leverage remains elevated following acquisitions and it has concerns about the buy-now-pay-later segment. The position is therefore a low-valuation recovery idea with meaningful balance-sheet and consumer-credit risk.