Greenhaven Road Capital has recently shared its first-quarter 2025 investor letter, revealing some intriguing insights that could impact investment decisions. In this quarter, the fund reported a net return of approximately -12%, trailing the Russell 2000 by around 2%. Notably, the focus of the letter leaned heavily on political developments, specifically President Trump’s Liberation Day and associated tariff policies, rather than the usual company fundamentals. Investors interested in serious pieces for their portfolio should also take a look at the fund’s top five holdings to understand its promising bets for 2025.
Among the standout stocks highlighted in this letter is Kingsway Financial Services Inc. (NYSE: KFS). Based in Chicago, Kingsway specializes in extended warranty and business services. This stock has posted impressive performance, boasting a one-month return of 34.20% and a remarkable 44.27% gain over the past year. As of May 21, 2025, Kingsway’s shares closed at $11.34, with a market capitalization reaching $307.244 million.
In their comments, Greenhaven Road Capital underscored Kingsway’s unique market positioning, stating:
“Kingsway Financial Services Inc. (NYSE: KFS) is largely overlooked by most market participants and comes with a market capitalization of just $225M. Its low profile makes it too small for many investors, resulting in an absence of sell-side coverage and consensus estimates. Mislabeling in databases as a ‘multi-line insurer’ adds to the confusion, while GAAP accounting rules may obscure its actual earning potential. If one were to attempt to obscure a company, they’d pull all these levers: small size, lack of coverage, misclassification, and distorted financials.”
Notably, despite Kingsway’s potential, it did not make the list of the 30 Most Popular Stocks Among Hedge Funds. Our data shows that five hedge funds included Kingsway in their portfolios by the end of Q4, up from three in the previous quarter. While we acknowledge its potential, we at Extreme Investor Network lean toward sectors such as AI for quicker long-term returns. For those on the hunt for an AI stock that rivals NVIDIA but is priced below five times earnings, don’t miss our exclusive report on an undervalued gem poised for significant gains.
For more investment insights, including other hedge fund letters for Q1 2025, make sure to visit our dedicated page. Stay educated and informed to make the best investment decisions.
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Disclosure: None. This information is originally published by Insider Monkey.