Giverny Capital Asset Management, LLC, an investment management company, recently published its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio returned -3.39% in the quarter, compared to a -4.27% return for the S&P 500 Total Return Index. For the year ended March 31, 2025, the fund returned 1.75% compared to an 8.25% return for the Index during the same period. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Giverny Capital Asset Management highlighted stocks such as TWFG, Inc. (NASDAQ:TWFG). TWFG, Inc. (NASDAQ:TWFG) is an independent distribution platform for personal and commercial insurance products. The one-month return of TWFG, Inc. (NASDAQ:TWFG) was 11.14%, and TYD, its shares gained 8.80% of their value. On April 17, 2025, TWFG, Inc. (NASDAQ:TWFG) stock closed at $33.51 per share with a market capitalization of $499.436 million.
Giverny Capital Asset Management stated the following regarding TWFG, Inc. (NASDAQ:TWFG) in its Q1 2025 investor letter:
“With the proceeds from those sales plus cash in hand, we allocated roughly 10% of our capital into three new holdings and three small additions. In December and into the first quarter, we bought a small position in TWFG, Inc. (NASDAQ:TWFG), which essentially is a technology and business support platform for independent insurance agents. The position is small mainly because TWFG itself is small and illiquid, as founder CEO Richard F. “Gordy” Bunch owns about 60% of the stock.
Bunch himself is a former insurance agent who saw an opportunity to create a platform where independent insurance agents selling personal lines (mostly auto and homeowners) could easily access quotes from dozens of insurers and receive back-office support, in exchange for 20% of their commissions. If the platform works well, the agent becomes more than 20% more productive while offering clients better coverage options. ..” (Click here to read the full text)
An insurance agent with a tablet device accessing a technology-enabled platform.
TWFG, Inc. (NASDAQ:TWFG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held TWFG, Inc. (NASDAQ:TWFG) at the end of the fourth quarter which was 15 in the previous quarter. While we acknowledge the potential of TWFG, Inc. (NASDAQ:TWFG) 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.
We covered TWFG, Inc. (NASDAQ:TWFG) in another article, where we shared Baron Discovery Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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.