Sohra Peak Partnership LLC, an investment management firm, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. In the quarter, the fund recorded a gain of 17.1% net of all fees, expenses, and allocations compared to a +8.7% gain for the S&P 500 Index. The strong performance from the long-term investments, that have been made in the previous and prior years helped the fund to continue its good performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Sohra Peak Partnership highlighted stocks like American Coastal Insurance Corporation (NASDAQ:ACIC) in the second quarter 2023 investor letter. American Coastal Insurance Corporation (NASDAQ:ACIC) was formerly known as United Insurance Holdings Corp. and changed its name in August 2023. Headquartered in Saint Petersburg, Florida, American Coastal Insurance Corporation (NASDAQ:ACIC) is a property and casualty insurance holding company. On September 8, 2023, American Coastal Insurance Corporation (NASDAQ:ACIC) stock closed at $7.35 per share. One-month return of American Coastal Insurance Corporation (NASDAQ:ACIC) was -7.31%, and its shares gained 734.47% of their value over the last 52 weeks. American Coastal Insurance Corporation (NASDAQ:ACIC) has a market capitalization of $319.038 million.
Sohra Peak Partnership made the following comment about American Coastal Insurance Corporation (NASDAQ:ACIC) in its Q2 2023 investor letter:
“Earlier this month, we released an investment memorandum on one of our portfolio holdings American Coastal Insurance Corporation (NASDAQ:ACIC) which can be found here. Since we wrote this memo, American Coastal has released its Q2 2023 quarterly results, which we found to be quite positive and which has led to an increase in our net income estimates for FY23 through FY25.
During the quarter, American Coastal’s average premium price per new policy written was significantly higher than I had expected, even in spite of the hard market environment. Based on my estimates, this could result in gross written premium (GWP) for the 12-months ending 6/1/2024 of $750MM or greater, and even possibly closer to $800MM, versus the expectations that I had laid out in the memo of $700MM. Furthermore, based on the company’s continued expected premium price increases, GWP should increase yet again for the 12 months ending 6/1/2025, which may also end up higher than my previous estimate.
We continue to view American Coastal as an unusually compelling investment today, and believe that shares could appreciate by +100-200% from today’s prices over the next 2-3 years.”
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American Coastal Insurance Corporation (NASDAQ:ACIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held American Coastal Insurance Corporation (NASDAQ:ACIC) at the end of second quarter which was 3 in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.