Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm’s model portfolio returned 16.26% (net) in the fourth quarter compared to an 11.69% return for the S&P 500 Total Return Index. The fund had an annual return of 29.07% compared to the 26.29% return for the Index during the same period. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Giverny Capital Asset Management featured stocks such as Kinsale Capital Group, Inc. (NYSE:KNSL) in the fourth quarter 2023 investor letter. Headquartered in Richmond, Virginia, Kinsale Capital Group, Inc. (NYSE:KNSL) is a specialty insurance company. On February 5, 2024, Kinsale Capital Group, Inc. (NYSE:KNSL) stock closed at $394.40 per share. One-month return of Kinsale Capital Group, Inc. (NYSE:KNSL) was 8.88%, and its shares gained 30.22% of their value over the last 52 weeks. Kinsale Capital Group, Inc. (NYSE:KNSL) has a market capitalization of $9.14 billion.
Giverny Capital Asset Management stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its fourth quarter 2023 investor letter:
“After the sale of Markel in the fall, we used the proceeds to buy a 2% position in Align Technology in November and a 2% position in Kinsale Capital Group, Inc. (NYSE:KNSL) in early December. Kinsale was a December purchase, so literally we’ve owned it for a few weeks, but it is up nicely from our $330 basis.
Kinsale is an insurance company that writes policies in the so-called Excess & Surplus market, or E&S. The E&S market takes on risks that the regulated market, or standard market, won’t underwrite. A lot of small business coverages end up in E&S, and because of the increasing risks for cyber security, hacking and other forms of fraud, small businesses find themselves needing more coverage.
Meanwhile, property owners in Florida, the Gulf Coast or California who cannot obtain any coverage for hurricane or wildfire risk also are ending up in the E&S market. There, they might pay twice as much premium for half as much coverage as they had previously. Because regulators won’t allow admitted companies to effectively quadruple their rates, those insurers in some cases are withdrawing from property markets. The result: policies flow into E&S…” (Click here to read the full text)
A successful independent agent or broker discussing the benefits of life and health insurance with a customer.
Kinsale Capital Group, Inc. (NYSE:KNSL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Kinsale Capital Group, Inc. (NYSE:KNSL) at the end of third quarter which was 27 in the previous quarter.
We discussed Kinsale Capital Group, Inc. (NYSE:KNSL) in another article and shared the list of high growth low/no dividend stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
