Progressive Corporation (PGR) Slipped Due to Investor Concerns

The London Company, an investment management company, released “The London Company Large 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 economy retained most of its momentum from the second quarter, even though the economic data released during the third quarter was mixed. The portfolio returned 6.3% (6.2%, net) during the quarter compared to an 8.0% gain for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, The London Company Large Cap Strategy 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 -16.48%, and its shares lost 17.89% of their value over the last 52 weeks. On November 3, 2025, The Progressive Corporation (NYSE:PGR) stock closed at $203.70 per share, with a market capitalization of $119.45 billion.

The London Company Large Cap Strategy stated the following regarding The Progressive Corporation (NYSE:PGR) in its third quarter 2025 investor letter:

"The Progressive Corporation (NYSE:PGR) – PGR was a bottom performer this quarter due to investor concerns over decelerating policy and premium growth, despite strong margins and strong retention driven by its leadership in personal auto insurance. We remain attracted to its best-in class operations, conservative underwriting, and shareholder friendly capital allocation philosophy."

The Progressive Corporation (NYSE:PGR) is in the 30th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the second quarter, which was 91 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 most undervalued large cap stocks to buy. 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.