Soumya Eswaran
3 min read
In This Article:
Greenhaven Road Capital, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned around -12% net of fees and expenses, trailing the Russell 2000 by approximately 2% in large part. The Q1 letter focused on President Trump’s Liberation Day and the attendant tariff policies rather than company fundamentals. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Greenhaven Road Capital highlighted stocks such as Kingsway Financial Services Inc. (NYSE:KFS). Headquartered in Chicago, Illinois, Kingsway Financial Services Inc. (NYSE:KFS) engages in extended warranty and business services. The one-month return of Kingsway Financial Services Inc. (NYSE:KFS) was 34.20%, and its shares gained 44.27% of their value over the last 52 weeks. On May 21, 2025, Kingsway Financial Services Inc. (NYSE:KFS) stock closed at $11.34 per share with a market capitalization of $307.244 million.
Greenhaven Road Capital stated the following regarding Kingsway Financial Services Inc. (NYSE:KFS) in its Q1 2025 investor letter:
"Kingsway Financial Services Inc. (NYSE:KFS) is invisible to most financial market participants. With a market capitalization of $225M, it is too small for many to invest in. The company has no sell side coverage, thus there are no “consensus numbers.” In FactSet and other financial databases, the company is misclassified as a “multi-line insurer”. To further compound the analytical challenge, GAAP accounting rules have the reported numbers understating the company’s earning power. If I wanted to camouflage a company, the levers I would pull are all present here: small, no sell-side, mislabeled, and distorted GAAP financials.
