Should You Add Hagerty (HGTY) to Your Portfolio? - InvestingChannel

Should You Add Hagerty (HGTY) to Your Portfolio?

Greenhaven Road Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined in the third quarter, bringing the year-to-date returns to approximately -59%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Greenhaven Road Capital highlighted stocks like Hagerty, Inc. (NYSE:HGTY) in its third-quarter investor letter. Headquartered in Traverse City, Michigan, Hagerty, Inc. (NYSE:HGTY) is an insurance agency services provider. On November 25, 2022, Hagerty, Inc. (NYSE:HGTY) stock closed at $8.61 per share. One-month return of Hagerty, Inc. (NYSE:HGTY) was -5.28%, and its shares lost 16.41% of their value over the last 52 weeks. Hagerty, Inc. (NYSE:HGTY) has a market capitalization of $2.878 billion.

Greenhaven Road Capital made the following comment about Hagerty, Inc. (NYSE:HGTY) in its Q3 2022 investor letter:

“Specialty insurance company Hagerty, Inc. (NYSE:HGTY) is a new investment for the Fund and therefore has a longer write-up as an appendix to this letter. Their insurance product, which primarily focuses on classic and collector cars, has low churn and, of course, auto insurance is legally mandated if you want your car on the road. Hagerty has better unit economics than other auto insurers, with significantly lower customer acquisition costs and lower loss ratios. The company’s large, contracted partnership with State Farm should grow their policies by 30% next year. On the product front, they are in the early innings of rolling out online and offline marketplaces for collector cars and they also have an upcoming positive contractual change in the revenue share agreement with Markel for their reinsurance business. The net effect of these contractual events and new products should position Hagerty very well for 2023 despite economic volatility.

A SPAC trading at over 200X forward earnings run by a man who almost became a priest should be either the set-up to a bad joke or a pitch for a short investment. However, out of the rubble of SPAC-ageddon emerges a very interesting company: Hagerty, Inc. (HGTY).

Earlier this month, we held an Annual Meeting for LPs that included a “Fireside Chat” with Hagerty’s CEO. The interview is worth watching as it covers much of the ground of this write-up and provides additional details…”(Click here to read the full text)

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Hagerty, Inc. (NYSE:HGTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Hagerty, Inc. (NYSE:HGTY) at the end of the third quarter, which was 9 in the previous quarter. 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.

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