Merion Road Capital’s Update on Bel Fuse (BELFB)

BELFA +1.69% BELFB +1.23% ^GSPC +0.69%

Merion Road Capital Management, an investment advisor, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, Merion Road Small Cap Fund returned 5.0% compared to 12.4% return for the Russell 2000 Index. The long-only portfolio of Merion Road returned 10.1% during the quarter compared to the S&P 500’s 8.1% return. The portfolio’s performance was largely driven by the strong performance of Kratos. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Merion Road Capital highlighted stocks such as Bel Fuse Inc. (NASDAQ:BELFB). Bel Fuse Inc. (NASDAQ:BELFB) designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The one-month return of Bel Fuse Inc. (NASDAQ:BELFB) was 0.15%, and its shares gained 93.40% of their value over the last 52 weeks. On November 26, 2025, Bel Fuse Inc. (NASDAQ:BELFB) stock closed at $152.69 per share, with a market capitalization of $1.933 billion.

Merion Road Capital stated the following regarding Bel Fuse Inc. (NASDAQ:BELFB) in its third quarter 2025 investor letter:

I also established a capital structure arbitrage in Bel Fuse (“BELFA” / “BELFB”). As you may recall, I previously owned Bel Fuse Inc. (NASDAQ:BELFB) based first on new management improving sales and profitability and subsequently on the acquisition and integration of Enercon. That investment worked out wonderfully for us, though in hindsight I sold too early as the company posted banner Q2 results. In revisiting the name, I noticed two things. Firstly, the discount in the price of the Class A shares versus the Class B shares had materially widened and was approaching historic levels. Secondly, Gabelli, a large holder of the Class A shares updated his holdings report to note that he is considering resubmitting a shareholder proposal to collapse the share structure.

Bel Fuse Inc. (NASDAQ:BELFB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Bel Fuse Inc. (NASDAQ:BELFB) at the end of the second quarter, which was 14 in the previous quarter. In the third quarter of 2025, Bel Fuse Inc. (NASDAQ:BELFB) announced sales of $179 million, marking a 44.8% rise compared to the same quarter in the previous year. While we acknowledge the potential of Bel Fuse Inc. (NASDAQ:BELFB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.