Core Insights - Palm Valley Capital Fund experienced a 2.35% appreciation in Q3 2025, underperforming compared to the S&P SmallCap 600's 9.11% gain and the Morningstar Small Cap Total Return Index's 7.99% rise [1] - The fund's allocation to cash equivalents increased from 73.5% to 74.1% during the quarter, reflecting a cautious investment strategy [1] - Small-cap stocks outperformed large caps during this period, driven by expectations of Federal Reserve easing and reduced tariff concerns impacting corporate profits [1] Company Insights: LKQ Corporation - LKQ Corporation is identified as a leading distributor of vehicle products and parts, focusing on aftermarket and recycled auto parts in the U.S. and Europe [2][3] - The stock of LKQ Corporation saw a one-month return of -7.711% and a 52-week decline of 21.97%, closing at $29.97 per share with a market capitalization of $7.711 billion on October 7, 2025 [2] - LKQ's business model is characterized by sourcing a significant percentage of its parts from recycled vehicles, making it resilient during economic downturns [3] - Demand for LKQ's products is influenced by factors such as repairable auto insurance claims, parts inflation, the aging vehicle fleet, and trends towards non-OEM parts and electronic vehicles [3]