Greenhaven Road Capital Doubled Its Holdings in Hagerty (HGTY)

Greenhaven Road Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned approximately -9%, bringing the YTD returns to approximately -9%. The factors that affected the portfolio during the quarter included a lack of direct investment in AI, no overlap with the S&P 500 and Russell 2000, and insufficient ownership of small, high growth, yet unprofitable companies that have driven the recent rally and benefited from the current AI landscape. 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, Greenhaven Road Capital highlighted stocks such as Hagerty, Inc. (NYSE:HGTY). Hagerty, Inc. (NYSE:HGTY) is a US-based company that provides insurance services for collector cars and enthusiast vehicles. The one-month return of Hagerty, Inc. (NYSE:HGTY) was 5.70%, and its shares gained 14.25% of their value over the last 52 weeks. On November 7, 2025, Hagerty, Inc. (NYSE:HGTY) stock closed at $12.43 per share, with a market capitalization of $4.252 billion.

Greenhaven Road Capital stated the following regarding Hagerty, Inc. (NYSE:HGTY) in its third quarter 2025 investor letter:

“Hagerty, Inc. (NYSE:HGTY): We have more than doubled Greenhaven Road’s number of shares held over the course of 2025. The core thesis: Hagerty’s earnings could grow 5x from 2024-2029, driven by three factors. First, the State Farm partnership transitions from a multi-million-dollar expense (pre-launch preparation) to a profit contributor as policies come online. Second, operating leverage kicks in as policies in force grow while the company consolidates onto one IT platform (Duck Creek), reducing costs. Third, loss ratios normalize back to Hagerty’s historical 42% target after recent hurricane and supply chain disruptions.

As the chart shows, the earnings improvement would be a continuation of a trend that began in 2022. Our thesis (with a lot more detail) is outlined in the linked presentation from September (link). I think HGTY earnings can 5X and share price compound at very attractive rates. It is worth the read. Insiders own nearly 86% of the company, which has a large base of recurring revenue with over 90% of policies renewing, pricing tailwinds, and a lot of operating leverage.”

In another article, we covered Hagerty, Inc. (NYSE:HGTY) and shared a bullish thesis on the company. 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.