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 Highlights: InterDigital, Inc. (NASDAQ: IDCC) - InterDigital, Inc. is a global R&D company specializing in wireless, visual, AI, and related technologies, with a one-month return of 15.30% and a 52-week gain of 69.03% [2] - As of November 21, 2025, InterDigital's stock closed at $327.63, with a market capitalization of $8.454 billion [2] - The company has a strong financial performance history, engages in opportunistic share buybacks, and pays a modest dividend [3] - InterDigital has successfully renewed licensing agreements with major companies like Apple and Samsung, contributing to a growing stream of recurring revenues [3] - In Q3 2025, InterDigital reported revenue of nearly $590 million, reflecting a 49% year-over-year increase [4] Investment Positioning - The FPA Queens Road Small Cap Value Fund has begun trimming its position in InterDigital, indicating a strategic adjustment in its investment approach [3] - Despite InterDigital's potential, the analysis suggests that certain AI stocks may offer greater upside potential with less downside risk [4]