Is The Progressive Corporation (PGR) an Attractive Business?

Bretton Capital Management, an investment management company, released “Bretton Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. This quarter saw record highs for both the fund and the market, as well as many of the firm’s holdings. In the third quarter, the fund returned 9.99% compared to 5.89% return for the S&P 500. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Bretton Fund highlighted stocks like The Progressive Corporation (NYSE:PGR), in the third quarter 2024 investor letter. The Progressive Corporation (NYSE:PGR) is an insurance holding company. The one-month return of The Progressive Corporation (NYSE:PGR) was 1.49%, and its shares gained 62.62% of their value over the last 52 weeks. On December 3, 2024, The Progressive Corporation (NYSE:PGR) stock closed at $262.61 per share with a market capitalization of $153.84 billion.

Bretton Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q3 2024 investor letter:

“We think The Progressive Corporation (NYSE:PGR) is the most sophisticated auto insurer in the business. It leverages its vast amount of driver data and is usually one of the first in the industry to recognize important shifts in things like driver behavior and collision costs. Progressive was one of the first to raise rates aggressively in 2021 to offset the higher costs from the more frequent car crashes and higher repair costs post-Covid. By raising prices before its competitors did, Progressive lost customers and wasn’t able to grow as fast as it usually does. The rest of the industry has since caught up and increased rates. Progressive’s rates are now comparatively attractive once again, and that’s led to highly profitable growth. Through September 30, its premiums are up 20% over last year, which is great for a low-growth industry like auto insurance. Progressive added 1.5% to the fund this quarter.”

A team of accountants in a boardroom, discussing strategic moves of an insurance company.

The Progressive Corporation (NYSE:PGR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 95 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the third quarter which was 89 in the previous quarter. While we acknowledge the potential of The Progressive Corporation (NYSE:PGR) 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 discussed The Progressive Corporation (NYSE:PGR) and shared Madison Sustainable Equity Fund’s views on the company. The London Company Large Cap Strategy also benefitted from The Progressive Corporation’s (NYSE:PGR) strong performance in Q3 2024. In addition, please check out our hedge fund investor letters Q3 2024 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.