Parnassus Investments Thinks The Progressive Corp. (PGR) "Remains Well Positioned to Outperform Peers"

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is The Progressive Corporation (NYSE:PGR). The Progressive Corporation (NYSE:PGR) writes insurance for personal autos and special lines products, including motorcycles, RVs, and watercraft; and personal residential property insurance for homeowners and renters. Over the past month, The Progressive Corporation (NYSE:PGR) fell by -141.561%, but it increased 12.78% over the last 12 months. On July 29, 2025, The Progressive Corporation (NYSE:PGR) shares closed at $241.49, with a market value of $141.561 billion.

Here is what they have to say about The Progressive Corporation (NYSE:PGR) in their investor letter:

"The Progressive Corporation (NYSE:PGR) underperformed as growth in policies slowed down. Investors also grew concerned about the impact of tariffs on costs. The company remains well positioned to outperform peers over the long term given its scale."

The Progressive Corporation (NYSE:PGR) is in 30th position on our list of the 30 most popular stocks among hedge funds. According to our data, 91 hedge fund portfolios held positions in The Progressive Corporation (NYSE:PGR) at the end of the first quarter of 2025, down from 100 in the previous quarter. While we acknowledge the potential of 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.

The Progressive Corporation (NYSE:PGR) is in 30th position on our list of the 30 most popular stocks among hedge funds. According to our data, 91 hedge fund portfolios held positions in The Progressive Corporation (NYSE:PGR) at the end of the first quarter of 2025, down from 100 in the previous quarter. While we acknowledge the risk and potential of PGR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PGR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Progressive Corporation (NYSE:PGR) and Madison Investments’ views on the company. 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.