Bowhead Specialty Holdings (BOW) Reported Strong Earnings, 20% Topline Growth Expected in 2025

Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund was down -16.57% in the quarter, outperforming the benchmark Russell Microcap® Growth Index’s -17.75% return. U.S. equities fell in Q1, driven by tariffs, budget cuts, economic weakness, stagflation concerns, and AI-related companies, affecting micro-cap companies. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Wasatch Micro-Cap Fund highlighted stocks such as Bowhead Specialty Holdings Inc. (NYSE:BOW). Bowhead Specialty Holdings Inc. (NYSE:BOW) is a specialty property and casualty insurance products provider. The one-month return of Bowhead Specialty Holdings Inc. (NYSE:BOW) was -6.94%, and its shares gained 42.26% of their value over the last 52 weeks. On May 27, 2025, Bowhead Specialty Holdings Inc. (NYSE:BOW) stock closed at $37.40 per share with a market capitalization of $1.222 billion.

Wasatch Micro-Cap Fund stated the following regarding Bowhead Specialty Holdings Inc. (NYSE:BOW) in its Q1 2025 investor letter:

“Bowhead Specialty Holdings Inc. (NYSE:BOW) was the second-largest contributor to performance. Bowhead is a specialty lines insurance group focused on providing casualty, professional liability and health-care liability insurance products. The company announced stronger-than-expected earnings in February and expects to grow its top line by 20% in 2025. The stock responded positively to those solid fundamentals.”

10 Best Property & Casualty Insurance Stocks to Buy

An insurance agent at their desk consulting a customer about property & casualty insurance.

Bowhead Specialty Holdings Inc. (NYSE:BOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Bowhead Specialty Holdings Inc. (NYSE:BOW) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the potential of Bowhead Specialty Holdings Inc. (NYSE:BOW) 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 undervalued AI stock set for massive gains.

In another article, we covered Bowhead Specialty Holdings Inc. (NYSE:BOW) and shared Wasatch Micro-Cap Value Strategy’s views on the company in the previous quarter. 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.