Here's Why Progressive (PGR) Traded Lower in Q2

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) increased 3.1%, compared to a 10.9% gain for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as The Progressive Corporation (NYSE:PGR). The Progressive Corporation (NYSE:PGR) is a US-based insurance company. The one-month return of The Progressive Corporation (NYSE:PGR) was -7.98%, and its shares gained 13.33% of their value over the last 52 weeks. On July 21, 2025, The Progressive Corporation (NYSE:PGR) stock closed at $245.13 per share, with a market capitalization of $143.695 billion.

Madison Large Cap Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its second quarter 2025 investor letter:

"The bottom five detractors for the quarter were Fiserv, Arch Capital Group, Copart, Alcon, and The Progressive Corporation (NYSE:PGR). Our insurance holdings, including Arch Capital Group and Progressive, which performed strongly in the first quarter, underperformed the strong equity market in the second quarter. Both businesses continue to perform well overall, although their rates of growth are slowing as we enter the later innings of the insurance pricing cycle."

The Progressive Corporation (NYSE:PGR) is in 30th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the first quarter, which was 100 in the previous quarter. While we acknowledge the potential of The Progressive Corporation (NYSE:PGR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Progressive Corporation (NYSE:PGR) and shared the list of best long term low volatility stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.