What Makes Kinsale Capital Group (KNSL) an Attractive Investment Opportunity?

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund (Class Y) decreased 4.15% compared to the 3.40% decrease for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks such as Kinsale Capital Group, Inc. (NYSE:KNSL). Founded in 2009, Kinsale Capital Group, Inc. (NYSE:KNSL) is a specialty insurance company. The one-month return of Kinsale Capital Group, Inc. (NYSE:KNSL) was 0.34%, and its shares gained 5.03% of their value over the last 52 weeks. On April 22, 2025, Kinsale Capital Group, Inc. (NYSE:KNSL) stock closed at $487.73 per share with a market capitalization of $11.368 billion.

Madison Mid Cap Fund stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q1 2025 investor letter:

"We added two new investments in the quarter, Kinsale Capital Group, Inc. (NYSE:KNSL) and Trex. Kinsale is a fast-growing excess and surplus (E&S) insurance company. The company is managed by its founder and is run as a true owner-operator. Kinsale’s proprietary technology systems produce tremendous efficiencies and give the company a low-cost advantage. The company’s strong entrepreneurial culture and insistence on doing things in-house and their own way (as opposed to industry convention) results in superior underwriting performance. With only ~1-2% market share within the E&S industry today, the growth runway is long. The stock had underperformed due to a combination of slowing premium growth and concerns over the insurance industry pricing cycle, resulting in a reasonable valuation given the quality of the business and potential for long-term compounding."

Kinsale Capital Group, Inc. (NYSE:KNSL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Kinsale Capital Group, Inc. (NYSE:KNSL) at the end of the fourth quarter which was 32 in the previous quarter. While we acknowledge the potential of Kinsale Capital Group, Inc. (NYSE:KNSL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Kinsale Capital Group, Inc. (NYSE:KNSL) and shared small cap financial stocks hedge funds are buying. In addition, please check out our hedge fund investor letters Q1 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.