Here’s Why FPA Queens Road Small Cap Value Fund Started Trimming Sprouts Farmers Market (SFM)

6 days ago 7

Soumya Eswaran

Mon, November 24, 2025 astatine 8:07 AM CST 3 min read

Investment absorption company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the 3rd quarter, the money returned 7.46% compared to a 12.60% instrumentality for the Russell 2000 Value Index. In the archetypal 3 quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s absorption is connected a diligent, disciplined, and diligent process, it expects the money to outperform successful down markets and way successful speculative markets. Additionally, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its third-quarter 2025 capitalist letter, the FPA Queens Road Small Cap Value Fund highlighted stocks specified arsenic Sprouts Farmers Market, Inc. (NASDAQ:SFM). Sprouts Farmers Market, Inc. (NASDAQ:SFM) is simply a retailer of fresh, natural, and integrated nutrient products nether the Sprouts brand. The one-month instrumentality of Sprouts Farmers Market, Inc. (NASDAQ:SFM) was -23.38%, and its shares mislaid 44.70% of their worth implicit the past 52 weeks. On November 21, 2025, Sprouts Farmers Market, Inc. (NASDAQ:SFM) banal closed astatine $81.83 per share, with a marketplace capitalization of $7.997 billion.

FPA Queens Road Small Cap Value Fund stated the pursuing regarding Sprouts Farmers Market, Inc. (NASDAQ:SFM) successful its 3rd 4th 2025 capitalist letter:

"Sprouts Farmers Market, Inc. (NASDAQ:SFM) is simply a supermarket concatenation focusing connected fresh, earthy , and integrated products. The institution has beardown operating margins, charismatic returns connected superior , and fantabulous caller store economics. 13 Sprouts accelerated its portion maturation from 12 stores a twelvemonth to 33 stores successful 2024 connected a basal of astir 400 stores – precise charismatic portion economical growth. Through April of this year, SFM’s banal performed highly good successful performance with beardown operating results and rising net estimates. But income growth, and the SFM stock price, person lagged since. We began trimming our presumption and taking gains successful the 3rd 4th of 2024 arsenic t helium company’s valuation entered the precocious extremity of our “range of reasonableness.”

Was Jim Cramer Right About Sprouts Farmers Market, Inc. (SFM)?

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