Institutional ticker directory tracking stock mentions, long/short ideas, and high-conviction pitches extracted from quarterly hedge fund letters.
| Ticker | Company | Sector | Industry | Pitches | Stance |
|---|---|---|---|---|---|
| Fund / Manager | Thesis Excerpt | Stance | Period / Date | Action |
|---|---|---|---|---|
FPA Queens Road Small Cap Value Fund Steve Scruggs | “Fabrinet (FN) is the leading manufacturer of optical networking modules for telecom equipment and data centers. We have written about Fabrinet at length in previous letters – FN has been a top contributor to our performance since 2023 when the company announced Nvidia as a 10% customer and datacenter sales started skyrocketing. Similar to TD Synnex, when we first bought Fabrinet in 2014, we didn't anticipate AI and massive data center spending. But we did think that the world was going to need a lot more high bandwidth communication and that Fabrinet seemed to be the best at manufacturing it. The stock performance has been exceptional and we have trimmed all the way up – Fabrinet now sits in the portfolio at a less than 1% position due to valuation. Fabrinet (FN) is a contract manufacturer that specializes in optical networking equipment and modules. This is complex work at small scales, and Fabrinet dominates its niche. The company has experienced impressive historical revenue growth and increased operating margins. Fabrinet's highest bandwidth products are finding increasing demand in data centers, especially those data centers used to train artificial intelligence models. In 2023, Fabrinet disclosed that Nvidia is a 10% customer. FN's stock price roughly doubled from last year on rising expectations for data center spending. We believe such spending, as capitalized in FN's stock price, may have gotten ahead of itself and have been trimming. But the need for high bandwidth networking will continue, Fabrinet dominates its core telecom and data center markets and has prudently diversified into a handful of other niches that reward precise assembly at small scale. We continue to hold a small position in Fabrinet. Fabrinet makes optical networking equipment and their datacenter business has grown to roughly half of sales.” | BULL | Q2 2026 Aug 12, 2026 | View Pitch |
FPA Queens Road Small Cap Value Fund Steve Scruggs | “We made a significant reduction to our position in Fabrinet (FN). Fabrinet is the leading manufacturer of optical networking equipment and subcomponents. The company has been a large beneficiary of the explosion in data center spending and performed extremely well in 2025. We continue to love the company but worry about an AI capex bubble and acknowledge that the stock has become expensive. Fabrinet's highest bandwidth products are finding increasing demand in data centers, especially those data centers used to train artificial intelligence models. In 2023, Fabrinet disclosed that Nvidia is a 10% customer. FN's stock price has more than doubled since April on rising expectations for data center spending. We believe such spending, as capitalized in FN's stock price, may have gotten ahead of itself and have been trimming. But the need for high bandwidth networking will continue, Fabrinet dominates its core telecom and data center markets and has prudently diversified into a handful of other niches that reward precise assembly at small scale. We believe Fabrinet will be a “compounder” for many years, and we continue to hold a position. BSD Analysis: Fabrinet enters 2026 as a powerhouse in the optical communications sector, recently reporting record-breaking Q2 results. For the quarter ended December 2025, the company surpassed expectations with a revenue of $1.13 billion (up 36% year-over-year) and a non-GAAP EPS of $3.36. Management has issued an optimistic Q3 2026 revenue guidance of $1.15 billion to $1.20 billion, driven by sustained demand in Datacom and High-Performance Computing (HPC). The investment case is further bolstered by a strong cash position of $961 million, allowing the firm to scale capacity for next-generation co-packaged optics (CPO). Analysts view Fabrinet as a premier "picks-and-shovels" play for the AI-driven infrastructure boom.” | BULL | Q4 2025 Dec 31, 2025 | View Pitch |
“Fabrinet also contributed during the quarter. Fabrinet is a contract manufacturer of laser-based communication hardware. The company's optical transceivers are notable for their ability to maintain precise thermal control and alignment of internal components during high-speed transmission of data. Fabrinet is seeing increased demand as data centers upgrade their networks to faster and lower-latency communication standards capable of handling complex AI workloads. Favorable trends in telecommunications end markets have added to investor optimism. BSD Analysis: Fabrinet enters 2026 as a pivotal "picks-and-shovels" play for the AI optical interconnect market, recently reporting Q2 2026 revenue of $1.13 billion (up 35.9% YoY). While the company beat revenue estimates, shares faced a 7% pullback in early February due to concerns over a slight margin compression to 9.7%. For the full year 2026, analysts project EPS of $9.40, with management guiding Q3 EPS to a range of $3.45 to $3.60. The investment case remains centered on its deep relationship with NVIDIA and the surge in 800G optical transceiver manufacturing. Despite a high trailing P/E of 42.6x, top-rated analysts at Susquehanna and Barclays recently raised price targets to $570 and $548 respectively, citing the structural undersupply of advanced optical packaging capacity.” | BULL | Q4 2025 Dec 31, 2025 | View Pitch | |
FPA Queens Road Small Cap Value Fund Steve Scruggs | “Fabrinet holds a dominant market position in specialized optical component manufacturing and is benefiting from rapid datacenter sales expansion tied to AI transceivers. Despite recent stock appreciation prompting risk-management trims, the company remains a top-five position trading in line with historical valuation multiples.” | BULL | Q2 2024 Jun 30, 2024 | View Pitch |
Each excerpt above is the manager's commentary on this ticker specifically. The full letter has the rest of their portfolio thinking, risk discussion, and broader institutional context.
