Soumya Eswaran
2 min read
In This Article:
The London Company, an investment management company, released “The London Company Small Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a correction in 1Q25 due to macro risks, weak economic growth, and inflation. The fund declined 6.9% (-7.1%, net) compared to a 9.5% decrease in the Russell 2000 Index. The positive impact of stock selection contributed to the strategy's relative performance in the quarter, partially offset by sector exposure. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as The Hanover Insurance Group, Inc. (NYSE:THG). The Hanover Insurance Group, Inc. (NYSE:THG) is a US-based insurance company that offers various property and casualty insurance products and services. The one-month return of The Hanover Insurance Group, Inc. (NYSE:THG) was 4.86%, and its shares gained 24.02% of their value over the last 52 weeks. On May 12, 2025, The Hanover Insurance Group, Inc. (NYSE:THG) stock closed at $167.57 per share with a market capitalization of $6.02 billion.
The London Company Small Cap Strategy stated the following regarding The Hanover Insurance Group, Inc. (NYSE:THG) in its Q1 2025 investor letter:
"The Hanover Insurance Group, Inc. (NYSE:THG): THG outperformed in the quarter due to strong 4Q24 earnings and 2025 outlook. The thesis is playing out as the company is trending towards high-teens ROE as margins normalize following a flurry of underwriting actions. We like the underwriting-focused culture, niche competitive positioning, and astute management team."
A woman in her car checking her insurance documents with a satisfied smile.
The Hanover Insurance Group, Inc. (NYSE:THG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held The Hanover Insurance Group, Inc. (NYSE:THG) at the end of the fourth quarter which was 24 in the previous quarter. While we acknowledge the potential of The Hanover Insurance Group, Inc. (NYSE:THG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered The Hanover Insurance Group, Inc. (NYSE:THG) and shared Heartland Value Plus Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
