Core Insights - The FPA Queens Road Small Cap Value Fund reported a return of 7.46% in Q3 2025, underperforming the Russell 2000 Value Index which returned 12.60% [1] - For the first three quarters of 2025, the fund achieved a return of 13.77%, outperforming the index's 9.04% [1] - The fund's investment strategy focuses on a disciplined and patient approach, expecting to perform better in down markets and lag in speculative markets [1] Company Analysis: IAC Inc. - IAC Inc. is a consumer technology conglomerate known for incubating and spinning off brands, with past spin-offs including Expedia and Match Group [3] - The company currently owns DotDash Meredith and has significant stakes in MGM Resorts International and Turo, among others [3] - IAC's stock has seen a one-month return of -2.82% and a 52-week decline of 18.26%, closing at $32.70 with a market cap of $2.621 billion on November 21, 2025 [2][3] - The market is hesitant to assign full valuation to IAC due to its current cash flow suppression for investments, with no immediate plans for asset realization [3] - Despite the market's reluctance, the asset value of IAC is believed to exceed its share price, and the company has a history of long-term value realization [3] Hedge Fund Interest - IAC Inc. was held by 46 hedge fund portfolios at the end of Q2 2025, an increase from 43 in the previous quarter [4] - While IAC is recognized for its investment potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Financial Data and Key Metrics Changes - IAC reported a 9% digital revenue growth in Q3, marking the eighth consecutive quarter of growth, with strong performance in licensing and performance marketing [16][31] - Digital-adjusted EBITDA grew 9% pro forma to $72 million, with 27% margins, and overall adjusted EBITDA reached $75 million, exceeding previous guidance [31][32] - The company has a cash balance exceeding $1 billion, which will be enhanced by the sale of non-core assets [14][32] Business Line Data and Key Metrics Changes - People Inc. achieved a 9% growth in digital revenue, driven by its iconic brands and diversified revenue sources [16][31] - The print division saw a 10% decline in adjusted EBITDA and a 15% revenue decline, which was considered acceptable by management [32] - Off-platform audience growth accelerated by 66% year-over-year, contributing significantly to revenue [24] Market Data and Key Metrics Changes - Google Search traffic as a source for core brands dropped from 54% two years ago to 24% in the latest quarter, but overall audience scale was maintained [22] - Ad revenue declined by 3% due to volume-related issues, with expectations for recovery in Q4 [23] Company Strategy and Development Direction - IAC aims to streamline its assets, focusing on People Inc. and MGM, while divesting non-core holdings [5][7] - The strategy includes reimagining People Inc. from a defensive to an offensive position, leveraging its brands to create new business opportunities [6][9] - MGM is viewed as a hedge against disintermediation, with a strong position in Las Vegas and plans to increase ownership [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong performance in digital revenue and audience engagement [16][29] - The macroeconomic environment is stable for higher-end consumers, while pressures exist in the lower-end market [66] - Management expects continued growth in digital revenue and profitability despite challenges from Google [23][32] Other Important Information - The company laid off about 6% of its workforce to free up capital for investments [29] - IAC has entered into a partnership with Microsoft for a publisher content marketplace, indicating a proactive approach to monetizing content in the AI landscape [25][26] Q&A Session Summary Question: Thoughts on MGM's valuation and investor interest - Management believes owning MGM through IAC offers additional value and optionality, despite the current market discount [39][44] Question: Update on one-time expenses - Management indicated that significant one-time expenses have been cleaned up, with a clear path forward for profitability [40][45] Question: State of the business and Google litigation update - Management expressed confidence in the business's future, highlighting the importance of recent deals and the potential for significant damages from the Google litigation [52][58] Question: Macro environment insights - The macro environment is stable for higher-end consumers, with some pressures noted in the corporate benefit sector [66] Question: Capital allocation strategy - Management emphasized a focus on opportunistic stock buybacks rather than pursuing high-priced acquisitions [72][74]

Financial Data and Key Metrics Changes - IAC reported a 9% digital revenue growth in Q3, marking the eighth consecutive quarter of growth [16][31] - Digital-adjusted EBITDA grew 9% pro forma to $72 million, with margins at 27% [31][32] - The company expects digital revenue growth in the range of 7%-10% for Q4 and adjusted EBITDA guidance for the year has been slightly lowered to $325 million-$340 million [32][33] Business Line Data and Key Metrics Changes - People Inc. achieved a 9% growth in digital revenue, driven by strong performance in licensing and performance marketing [16][31] - The print division saw a 10% decline in adjusted EBITDA and a 15% revenue decline, which was considered acceptable by management [31] - Off-platform audience growth accelerated by 66% year-over-year, contributing significantly to revenue [24] Market Data and Key Metrics Changes - Google Search traffic as a source for core brands decreased from 54% two years ago to 24% in the latest quarter, indicating a shift in traffic sources [22] - Despite challenges from Google, overall audience growth has been maintained, with other traffic sources increasing [22][23] Company Strategy and Development Direction - IAC aims to focus on People Inc. and MGM, divesting non-core assets and reducing overhead [5][6] - The strategy includes reimagining People Inc. from a defensive to an offensive position, leveraging its strong brand portfolio [7][8] - MGM is viewed as a hedge against disintermediation, with a strong position in the Las Vegas market [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong audience engagement and the potential for new business ventures [16][29] - The macroeconomic environment is seen as stable for higher-end consumers, while pressures exist in lower-end markets [66][67] - Management is cautious about asset pricing and intends to focus on share repurchases rather than high-priced acquisitions [15][75] Other Important Information - The company laid off about 6% of its workforce to free up capital for investments [29] - IAC has a cash balance of over $1 billion, which will be enhanced by selling non-core assets [14] Q&A Session Summary Question: Thoughts on MGM's valuation and investor interest - Management believes owning MGM through IAC offers a better value proposition than buying MGM directly, highlighting the combined potential of both assets [39][44] Question: Update on one-time expenses - Management indicated that significant one-time expenses have been cleaned up, and they do not expect further large one-time charges going forward [40][45] Question: State of the business and future outlook - Management expressed confidence in the business's future, citing the Microsoft AI deal and the Feedfeed acquisition as positive indicators [52][56] Question: Macro environment insights - The macro environment is stable for higher-end consumers, with some pressures noted in the corporate benefit sector [66][67] Question: Capital allocation strategy - Management emphasized a focus on opportunistic share buybacks rather than pursuing high-priced acquisitions [75]

Core Insights - Experience Hendrix has released a box set featuring recordings for Jimi Hendrix's second album, Axis: Bold as Love, marking the fifty-fifth anniversary of his death [1][5] - The company has been instrumental in revitalizing Hendrix's catalog and image since its establishment in 1995, led by his sister Janie Hendrix [3][10] Company Background - Experience Hendrix L.L.C. was formed in 1995 to manage and curate Jimi Hendrix's music and legacy [3] - The organization has released over forty albums of Hendrix's studio and live recordings, collaborating with his main engineer, Eddie Kramer [10] Legacy Management - After Hendrix's death, his music was initially managed by his manager Michael Jeffery, whose actions led to a series of substandard releases [6][9] - Al Hendrix gained control of the estate in 1970, and a legal agreement in 1995 allowed him to manage Jimi's songs effectively [7] Recent Developments - The upcoming deluxe edition of Axis: Bold as Love will include 28 previously unreleased recordings, emphasizing the estate's focus on high-quality audio and historical context [11] - Experience Hendrix aims to continue sharing Hendrix's music while maintaining the integrity of his artistic legacy [11] Market Performance - The mainstream market for Hendrix's archival releases has stabilized, with no new album spending more than four weeks on the Billboard Top 200 in the past decade [13] - Notable successful releases include Live At Woodstock, BBC Sessions, and Valleys Of Neptune, with some albums achieving significant chart positions [12][13] Future Prospects - The Hendrix archives remain extensive, suggesting that more curated recordings will be released in the future to satisfy fans and collectors [14]

Core Viewpoint - ByteDance has adjusted its Feishu business by separating the People line into the Group Information Systems Department, reflecting a strategic shift in response to economic pressures and the performance of non-profitable departments [1][4]. Group 1: Business Adjustments - The People product, which includes services like recruitment and performance management, was initially developed to commercialize ByteDance's HR management model but has struggled to gain traction in a challenging economic environment [1][2]. - The decision to separate the People team is part of a broader trend where companies are cutting non-essential departments to reduce costs during economic downturns [4]. Group 2: Market Insights - The lack of interest from clients in HR SaaS tools indicates that HR functions are still viewed as back-office roles, failing to create sufficient business value [2][3]. - For HR SaaS to become a market necessity, it must integrate with business operations and demonstrate its impact on business performance, rather than merely serving HR's internal processes [2][5]. Group 3: HR Transformation - HR professionals need to evolve from focusing solely on recruitment and retention to integrating their functions with business strategies to create value [3][4]. - The future of HR lies in its ability to leverage data and analytics to enhance organizational effectiveness, moving beyond basic metrics to more sophisticated insights [3][4]. Group 4: Industry Perspective - The adjustments made by ByteDance are indicative of a broader trend in the industry where companies are reevaluating the necessity of HR roles and functions in light of economic constraints [4][5]. - The potential for HR functions remains strong, but there is a pressing need for HR professionals to adapt and innovate in response to emerging challenges and competition from AI and cross-functional roles [4][5].