13D Filing: Farnam Street Partners and HCI Group Inc. (NYSE:HCI)

CUSIP No. 40416E103

Explanatory
Note

This Final Amendment
to Schedule 13D amends and supplements the statement on Schedule 13D filed on August 9, 2016 (the “Original 13D”)
by the reporting persons. This Final Amendment to Schedule 13D is being filed to report that as of April 10, 2017, none of
the reporting persons, individually or in the aggregate, is a beneficial owner of more than 5% of the Common Stock of HCI Group,
Inc., a Florida corporation (the “Issuer” or the “Company”). Set forth below are items that are changed
from the Original 13D.

Item 5.

Interests in Securities of the Issuer.

(a) Farnam Fund beneficially owns 241,368
shares of the outstanding Common Stock of the Issuer, representing approximately 2.35% of the Common Stock. FS I Fund beneficially
owns 126,375 shares of the outstanding Common Stock of the Issuer, representing approximately 1.2% of the Common Stock. FS II Fund
beneficially owns 132,634 shares of the outstanding Common Stock of the Issuer, representing approximately 1.3% of the Common Stock.
Mr. Cabillot beneficially owns 3,000 shares (held in an IRA account) of the outstanding Common Stock of the Issuer, representing
less than 1% of the Common Stock. (All percentages are based upon 10,282,438 shares outstanding, as reported in the Issuer’s Form
10-K for the fiscal year ended December 31, 2016).

(b) The Funds do not share
voting and dispositive power with respect to any shares. Farnam Capital may be deemed to beneficially own the aggregate of 500,377
shares of the outstanding Common Stock of the Issuer held by the Funds by virtue of its right to vote and dispositive power, representing
approximately 4.9% of the Common Stock.

Mr. Cabillot and Mr. Haeg share voting and
dispositive power of the Common Stock beneficially owned by the Funds by virtue of each entity’s and person’s relationship
to the other as described in Item 2(a).

(c) The following sales have occurred
in the past 60 days:

Farnam Street Partners, LP

Date	No. of Shares	Price per share*
2/10/2017	1,000	$43.83
2/13/2017	4,571	$44.5006
2/14/2017	2,000	$44.725
2/22/2017	3,000	$46.4167
3/01/2017	937	$50.01
4/10/2017	3,422	$45.4188

FS Special Opportunities I, L.P.

Date	No. of Shares	Price per share*
4/10/2017	4,000	$45.4188

FS Special Opportunities II, L.P.

Date	No. of Shares	Price per share*
4/10/2017	4,000	$45.4188

*Price per share may be a weighted average price.
Actual purchases may have been made in smaller lots at differing prices.

All sales were open market sales.