Palm Valley Capital Administration, an funding administration agency, has launched the “Palm Valley Capital Fund” third-quarter 2025 investor letter. A duplicate of the letter might be downloaded right here. Within the third quarter, Palm Valley Capital Fund appreciated 2.35% in comparison with a 9.11% achieve for the S&P SmallCap 600 and a 7.99% rise within the Morningstar Small Cap Complete Return Index. Initially of the quarter, the Fund invested 73.5% in money equivalents, rising barely to 74.1% by the top of the quarter. Small-cap shares carried out forward of huge caps in the course of the interval, with the anticipation of Fed easing and decreased considerations in regards to the affect of tariffs on company earnings. As well as, please verify the fund’s high 5 holdings to know its greatest picks in 2025.
In its third-quarter 2025 investor letter, Palm Valley Capital Fund highlighted shares reminiscent of LKQ Company (NASDAQ:LKQ). LKQ Company (NASDAQ:LKQ) is a number one distributor of car merchandise and components to restore, preserve, and decorate cars. The one-month return of LKQ Company (NASDAQ:LKQ) was -7.711%, and its shares misplaced 21.97% of their worth over the past 52 weeks. On October 7, 2025, LKQ Company (NASDAQ:LKQ) inventory closed at $29.97 per share, with a market capitalization of $7.711 billion.
Palm Valley Capital Fund acknowledged the next relating to LKQ Company (NASDAQ:LKQ) in its third quarter 2025 investor letter:
“LKQ Company (NASDAQ:LKQ) is the biggest distributor of aftermarket and recycled auto components in the US and Europe. It’s a roll-up success story. Within the U.S., the corporate focuses on collision merchandise (e.g., headlights, fenders, bumpers, paints). In Europe, LKQ’s components providing is generally mechanical in nature (e.g., engines, brakes, suspension). Not like different main auto components distributors, LKQ sources a big share of its components by recycling previous automobiles bought from auctions and saved on the agency’s junkyards. Promoting auto components for broken automobiles has typically been a recession resistant enterprise. Demand is pushed by a number of components together with the variety of repairable auto insurance coverage claims, components inflation and complexity, the growing older and dimension of the automotive parc, the willingness of insurers to make the most of non-OEM components, and structural traits reminiscent of accident avoidance expertise and the shift to digital automobiles.
