Here's Why White Mountains Insurance Group Ltd (WTM) Fell in Q3

The London Company, an investment management company, released “The London Company Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The small-cap portfolio appreciated 1.9% (2.4% net) in the third quarter, compared to the Russell 2000 Index’s 12.4% gain. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as White Mountains Insurance Group, Ltd. (NYSE:WTM). Headquartered in Hamilton, Bermuda, White Mountains Insurance Group, Ltd. (NYSE:WTM) is an insurance and other financial services provider. The one-month return of White Mountains Insurance Group, Ltd. (NYSE:WTM) was -0.28%, and its shares gained 6.82% of their value over the last 52 weeks. On November 3, 2025, White Mountains Insurance Group, Ltd. (NYSE:WTM) stock closed at $1,899.87 per share, with a market capitalization of $4.892 billion.

The London Company Small Cap Strategy stated the following regarding White Mountains Insurance Group, Ltd. (NYSE:WTM) in its third quarter 2025 investor letter:

"White Mountains Insurance Group, Ltd. (NYSE:WTM) – WTM was a bottom name due to industry headwinds and investment volatility in its portfolio. Concerns about residuals from early catastrophe hits have also pressured the stock. We remain confident in the company’s ability to deliver outsized growth in book value per share over time through prudent capital allocation."

White Mountains Insurance Group, Ltd. (NYSE:WTM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held White Mountains Insurance Group, Ltd. (NYSE:WTM) at the end of the second quarter, up from 19 in the previous quarter. While we acknowledge the potential of White Mountains Insurance Group, Ltd. (NYSE:WTM) 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 White Mountains Insurance Group, Ltd. (NYSE:WTM) and shared The London Company's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.