Should You Consider Adding Forrester Research (FORR) To Your Portfolio?

Soumya Eswaran

Mon, Apr 7, 2025, 6:56 AM 4 min read

Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Palm Valley Capital Fund appreciated 0.57% compared to an 8.93% decline in the S&P SmallCap 600 and a 6.08% drop in the Morningstar Small Cap Total Return Index. Cash was 77.6% of Fund assets at the start of the quarter and 76.5% at the conclusion. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first quarter 2025 investor letter, Palm Valley Capital Fund emphasized stocks such as Forrester Research, Inc. (NASDAQ:FORR). Forrester Research, Inc. (NASDAQ:FORR) is an independent research and advisory company. The one-month return of Forrester Research, Inc. (NASDAQ:FORR) was -9.30%, and its shares lost 52.22% of their value over the last 52 weeks. On April 4, 2025, Forrester Research, Inc. (NASDAQ:FORR) stock closed at $9.46 per share with a market capitalization of $179.56 million.

Palm Valley Capital Fund stated the following regarding Forrester Research, Inc. (NASDAQ:FORR) in its Q1 2025 investor letter:

"We started four new positions in the first quarter: Forrester Research, Inc. (NASDAQ:FORR), Monro (ticker: MNRO), Reynolds Consumer Products (ticker: REYN), and Flowers Foods (ticker: FLO). Each of these is a relatively small weighting in the Fund. Forrester Research provides advice and research to help business and technology leaders make better decisions. The firm was founded in 1983 by George Colony, who remains CEO and owns over 40% of the company. The core Research business is a subscription-based model paid in advance by customers and has 90% renewal rates, leading to high cash generation. Forrester is a very distant number two player in the space, after Gartner. While Forrester is usually mentioned in the same breath as Gartner when discussing leaders in technology research, Forrester’s economics pale in comparison. Gartner is the dominant provider of advice on back-office technology to big companies making major purchase decisions. Forrester focuses more on the front office, including marketing roles.