Here's Why Progressive (PGR) Fell in Q2

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In 2025's second quarter, tariffs triggered market declines and recession fears, but a pause in tariffs sparked a historic rally as earnings remained resilient. In the second quarter of 2025, the fund underperformed the Russell 1000 benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Impax US Sustainable Economy 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 -2.98%, and its shares gained 12.53% of their value over the last 52 weeks. On August 5, 2025, The Progressive Corporation (NYSE:PGR) stock closed at $242.94 per share, with a market capitalization of $142.414 billion.

Impax US Sustainable Economy Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its second quarter 2025 investor letter:

"The Progressive Corporation (NYSE:PGR) (Financials, Insurance) has a high Corporate Resilience score and has a role to play in calculating the genuine cost of climate change and diversifying climate risk, as well as providing access to affordable insurance. The stock experienced a pullback during this period, driven by read-across from peers on weaker organic growth expectations in short term."

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 Madison Large Cap Fund's 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.