Greenhaven Road Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned approximately -9%, bringing the YTD returns to approximately -9%. The factors that affected the portfolio during the quarter included a lack of direct investment in AI, no overlap with the S&P 500 and Russell 2000, and insufficient ownership of small, high growth, yet unprofitable companies that have driven the recent rally and benefited from the current AI landscape. 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, Greenhaven Road Capital highlighted stocks such as Hagerty, Inc. (NYSE:HGTY). Hagerty, Inc. (NYSE:HGTY) is a US-based company that provides insurance services for collector cars and enthusiast vehicles. The one-month return of Hagerty, Inc. (NYSE:HGTY) was 5.70%, and its shares gained 14.25% of their value over the last 52 weeks. On November 7, 2025, Hagerty, Inc. (NYSE:HGTY) stock closed at $12.43 per share, with a market capitalization of $4.252 billion.
Greenhaven Road Capital stated the following regarding Hagerty, Inc. (NYSE:HGTY) in its third quarter 2025 investor letter:
“Hagerty, Inc. (NYSE:HGTY): We have more than doubled Greenhaven Road’s number of shares held over the course of 2025. The core thesis: Hagerty’s earnings could grow 5x from 2024-2029, driven by three factors. First, the State Farm partnership transitions from a multi-million-dollar expense (pre-launch preparation) to a profit contributor as policies come online. Second, operating leverage kicks in as policies in force grow while the company consolidates onto one IT platform (Duck Creek), reducing costs. Third, loss ratios normalize back to Hagerty’s historical 42% target after recent hurricane and supply chain disruptions.
Hagerty, Inc. (NYSE:HGTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 11 hedge fund portfolios held Hagerty, Inc. (NYSE:HGTY) at the end of the second quarter, compared to 12 in the previous quarter. While we acknowledge the potential of Hagerty, Inc. (NYSE:HGTY) 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.
