Should You Invest in The Progressive Corporation (PGR)?

LRT Capital Management, an investment management firm, released its October 2022 investor letter. A copy of the same can be downloaded here. The results in October were excellent, and its LRT Economic Moat strategy returned 7.38%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

LRT Capital discussed stocks like The Progressive Corporation (NYSE:PGR) in the investor letter. Headquartered in Mayfield, Ohio, The Progressive Corporation (NYSE:PGR) is an insurance holding company. On November 16, 2022, The Progressive Corporation (NYSE:PGR) stock closed at $125.91 per share. One-month return of The Progressive Corporation (NYSE:PGR) was 5.93% and its shares gained 38.79% of their value over the last 52 weeks.  The Progressive Corporation (NYSE:PGR) has a market capitalization of $73.666 billion.

LRT Capital made the following comment about The Progressive Corporation (NYSE:PGR) in its October investor letter:

“The Progressive Corporation (NYSE:PGR) is a leading U.S. auto insurer that has pioneered telemetrics as a source of differentiation in its underwriting and it operates through a direct (non-agency) sales model. We believe that the company’s sales model, which is still the minority model in the industry confers on the company a durable process-based cost advantage that has allowed the company to deliver industry leading combined ratios (a standard measure of profitability in the insurance industry).

The company has plenty of room to grow and take market share from players such as State Farm, Farmers and Nationwide. The cost advantages conferred by the direct sales model are unstoppable, and the scale advantages the company has in advertising and other customer acquisition costs furthers its strong competitive position. We believe the industry structure is going to evolve towards a duopoly with Progressive and GEICO as the two main players…” (Click here to read the full text)

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The Progressive Corporation (NYSE:PGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the third quarter which was 54 in the previous quarter.

We discussed The Progressive Corporation (NYSE:PGR) in another article and shared the stock picks of Gavin Abrams’ Abrams Bison Investments. In addition, please check out our hedge fund investor letters Q3 2022 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.