Giverny Capital Asset Management Bets on TWFG (TWFG), an Independent Distribution Platform

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio’s underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market is fixated on AI investments, leaving the actual benefits unclear. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Giverny Capital Asset Management highlighted stocks like TWFG, Inc. (NASDAQ:TWFG). TWFG, Inc. (NASDAQ:TWFG) is an independent distribution platform for personal and commercial insurance products. On January 30, 2026, TWFG, Inc. (NASDAQ:TWFG) stock closed at $24.99 per share. One-month return of TWFG, Inc. (NASDAQ:TWFG) was -11.88%, and its shares lost 15.80% of their value over the last 52 weeks. TWFG, Inc. (NASDAQ:TWFG) has a market capitalization of $1.4 billion.

Giverny Capital Asset Management stated the following regarding TWFG, Inc. (NASDAQ:TWFG) in its fourth quarter 2025 investor letter:

“Moving on to purchases, we added to existing positions TWFG, Inc. (NASDAQ:TWFG) and Kinsale in the fourth quarter. TWFG offers an operating platform for independent insurance agents who sell mostly auto and homeowners’ policies. Essentially, it gives agents access to dozens of carriers and back office support in exchange for a 20% share of their commissions. Agents benefit from greater ability to find the best coverage and rates for clients and, ideally, to grow their business faster than they could otherwise. TWFG has a market cap below $2 billion and is majority owned by its founder, making the shares illiquid. We’re adding to it as we can, but it remains small.”

TWFG, Inc. (NASDAQ:TWFG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 12 hedge fund portfolios held TWFG, Inc. (NASDAQ:TWFG) at the end of the third quarter, compared to 21 in the previous quarter. While we acknowledge the risk and potential of TWFG, Inc. (NASDAQ:TWFG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TWFG, Inc. (NASDAQ:TWFG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered TWFG, Inc. (NASDAQ:TWFG) and shared Giverny Capital Asset Management’s views on the company in the previous quarter. 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.