15 Small Cap Financial Stocks Hedge Funds Are Buying

10. Kinsale Capital Group, Inc. (NYSE:KNSL)  

Market Capitalization: $11.321 Billion

Number of Hedge Fund Holders: 36

Kinsale Capital Group, Inc. (NYSE:KNSL) is a specialty insurance company that focuses on excess and surplus lines markets in the United States. The excess and surplus lines market refers to clients with high-risk insurance needs, which are not covered by regular insurance. The company operates in both commercial and personal lines, operating through a network of independent brokers.

On April 10, Morgan Stanley analyst Bob Huang maintained a Buy rating on the stock with a price target of $515. Giverny Capital Asset Management also mentioned Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q1 2025 investor letter, stating that they like the founder and CEO of the company along with the cost discipline, technology, and underwriting that has been delivering results. Moreover, the company has maintained a clear strategic focus on small Excess & Surplus accounts, leveraging absolute control over underwriting and claims processes. As a result, Gross written Premium for Q4 2024 grew by 12.2%, along with casualty division growing 15%.

Management also noted that they are focusing on technology driven, low-cost operating model, which is one of the key advantage of Kinsale Capital Group, Inc. (NYSE:KNSL). It plans to invest in technology, automation, data, and analytics to drive continued growth. The company expects 10% to 20% long-term growth in gross written premiums, by steady submission growth and selective pricing strategies. It is one of the small-cap financial stocks hedge funds are buying.

Giverny Capital Asset Management stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q1 2025 investor letter:

“We added to existing positions in Medpace and Kinsale Capital Group, Inc. (NYSE:KNSL), both of which are now among our top 10 holdings. Medpace is a clinical research organization that helps emerging biopharma companies conduct trials on new compounds. I’ve written about Kinsale at length in prior letters (all of which are available on our www.givernycam.com website) but as a reminder, it writes so-called excess and surplus lines of insurance, which are less regulated coverages often offered to small businesses. Kinsale has a strong founder-CEO at the helm in Mike Kehoe, along with exceptional cost discipline, best-in-class technology and consistent underwriting results.”