Here’s Why FPA Queens Road Small Cap Value Fund Increased Its Holdings in RLI Corp (RLI)

3 hours ago 2

Soumya Eswaran

Tue, May 12, 2026 astatine 6:48 AM CDT 3 min read

Investment absorption company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. In a volatile but affirmative quarter, the FPA Queens Road Small Cap Value Fund (“Fund”) returned 6.07%, beating the Russell 2000 Value Index’s 4.96%. The Fund expects amended show successful down markets and underperformance successful speculative ones owed to its disciplined approach. Amid ongoing planetary commodity shocks, governmental issues, and economical fallout from the Iran conflict, the missive discusses small-caps and the firm's semipermanent concern strategy. In Q1, the money continued to rebalance the portfolio towards higher-quality holdings, focusing connected equilibrium expanse strength, net consistency, and returns connected capital. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, FPA Queens Road Small Cap Value Fund highlighted stocks similar RLI Corp. (NYSE:RLI). RLI Corp. (NYSE:RLI) is an security holding company. On May 11, 2026, RLI Corp. (NYSE:RLI) banal closed astatine $48.34 per share. One-month instrumentality of RLI Corp. (NYSE:RLI) was -16.41%, and its shares are down 34.99% implicit the past 12 months. RLI Corp. (NYSE:RLI) has a marketplace capitalization of $4.44 billion.

FPA Queens Road Small Cap Value Fund stated the pursuing regarding RLI Corp. (NYSE:RLI) successful its Q1 2026 capitalist letter:

"RLI Corp. (NYSE:RLI) is simply a specialty spot and casualty insurer. The institution is highly selective successful penning business. Its diversified lines see niche-y areas specified arsenic schoolhouse buses, Hawaii homeowners, and surety. RLI’s unsocial culture, inducement structures and willingness to locomotion distant from unprofitable concern person historically led to exceptional fiscal performance. From 2015 done 2024, the company’s combined ratio has averaged 89.3% and its ROE has averaged 16.6% contempt being weighed down by excess capital.11 We person owned RLI since 2011 and the banal usually commands a premium valuation – we were pleased to beryllium capable to adhd to our presumption astatine astir 20x this year’s earnings."

A Closer Look astatine RLI Corp (RLI), a Quiet Dividend Grower

RLI Corp. (NYSE:RLI) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 26 hedge money portfolios held RLI Corp. (NYSE:RLI) astatine the extremity of the 4th quarter, compared t0 36 successful the erstwhile quarter. While we admit the imaginable of RLI Corp. (NYSE:RLI) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

Read Entire Article