Is White Mountains Insurance Group (WTM) a Good Long-Term Investment?

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. At the end of the second quarter, the fund returned -13.70% compared to -17.20% for the Russell 2000 Index and -15.28% for the Russell 2000 Value Index. You can check the top 5 holdings of the fund to know its best picks in 2022.

Cove Street Capital discussed stocks like White Mountains Insurance Group, Ltd. (NYSE:WTM) in the second quarter investor letter. Headquartered in Hamilton, Bermuda, White Mountains Insurance Group, Ltd. (NYSE:WTM) is an insurance and financial services provider. On August 25, 2022, White Mountains Insurance Group, Ltd. (NYSE:WTM) stock closed at $1,359.24 per share. One-month return of White Mountains Insurance Group, Ltd. (NYSE:WTM) rose to 8.92% and its shares lost 19.98% of their value over the last 52 weeks. White Mountains Insurance Group, Ltd. (NYSE:WTM) has a market capitalization of $3.924 billion.

Here is what Cove Street Capital specifically said about White Mountains Insurance Group, Ltd. (NYSE:WTM):

“White Mountains Insurance Group, Ltd. (NYSE:WTM) is a holding that has been sometimes in and sometimes out of the portfolio for…30 years. They make investments mainly in insurance and “fintech”. We have been very successful in judging when they are “dormant” or “active”, and the stock tends to reflect movement from one pole to the other. We astutely recognized that their move to put $600mm plus in reinsurer ARK last year was a key sign of “active”, and we had a 5% position within days. ARK has played out well as global pricing remains strong. While the market tends to value WTM at book value, we do the work to understand that many of their assets are worth a lot more than book, like their recent sale of insurance sub NSM at nearly 4x book value. The company is cheap and stable, and the management are good stewards of our capital.”

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White Mountains Insurance Group, Ltd. (NYSE:WTM) is not on the list of 30 Most Popular Stocks Among Hedge Funds. White Mountains Insurance Group, Ltd. (NYSE:WTM) was held by 20 hedge fund portfolios at the end of the second quarter compared to 17 in the previous quarter.

We discussed White Mountains Insurance Group, Ltd. (NYSE:WTM) in another article and shared the stocks to invest in according to Alan Parsow’s Elkhorn Partners. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.