Soft Insurance Pricing Environment Hurt Ryan Specialty's (RYAN) Performance

Cooper Investors, an investment management firm, released its fourth-quarter 2025 investor letter for “Cooper Investors Global Equities Fund (Unhedged)”. A copy of the letter can be downloaded here. The portfolio returned -3.3% in Q4 2025, bringing the yearly returns to 2.6%. Currency fluctuations of approximately 5% weighed on the yearly performance. The portfolio returned 14.2% on an annualized basis over the past three years, compared to the MSCI AC World Index’s annualized return of 21.3% for the same period. The firm focuses on a long-term horizon to provide a risk-adjusted return above the market. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Cooper Investors Global Equities Fund highlighted stocks like Ryan Specialty Holdings, Inc. (NYSE:RYAN). Ryan Specialty Holdings, Inc. (NYSE:RYAN) is a specialty products and solutions provider for insurance brokers, agents, and carriers. On February 10, 2026, Ryan Specialty Holdings, Inc. (NYSE:RYAN) stock closed at $44.88 per share. One-month return of Ryan Specialty Holdings, Inc. (NYSE:RYAN) was -10.54%, and its shares lost 33.15% of their value over the last three months. Ryan Specialty Holdings, Inc. (NYSE:RYAN) has a market capitalization of $11.868 billion.

Cooper Investors Global Equities Fund stated the following regarding Ryan Specialty Holdings, Inc. (NYSE:RYAN) in its fourth quarter 2025 investor letter:

"We wrote about wholesale insurance broker Ryan Specialty Holdings, Inc. (NYSE:RYAN) in our December 2024 Quarterly Report. The business is currently navigating a soft underlying insurance pricing environment predominantly in the property portion of the business. Even in this softer environment, we expect RYAN to grow its 2025 revenues organically at close to 10% and EBITDA at over 20% when taking into account completed acquisitions.

By way of background, as an insurance broker RYAN’s revenues are generated as a percentage commission applied to the insurance premiums they help to place. Therefore, insurance pricing has a direct short-term impact on revenues. However, over the long term, insurance volumes are the most important driver of revenue growth. On this front, flows into the Excess and Surplus market, which is RYAN’s focus, remain at a robust double-digit growth rate. Management continues to execute at a high level – introducing new products and integrating acquisitions as exempli ed by the company’s 15% organic revenue growth in the third quarter, which is several-fold faster than the broader insurance broker peer group…” (Click here to read the full text)

Ryan Specialty Holdings, Inc. (NYSE:RYAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 26 hedge fund portfolios held Ryan Specialty Holdings, Inc. (NYSE:RYAN) at the end of the third quarter, up from 19 in the previous quarter. While we acknowledge the potential of Ryan Specialty Holdings, Inc. (NYSE:RYAN) 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 Ryan Specialty Holdings, Inc. (NYSE:RYAN) and shared Vulcan Value Partners' views on the company. In addition, please check out our hedge fund investor letters Q4 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.