Here’s Why Enstar Group Limited (ESGR) Shares Declined in the Third Quarter

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -1.50% net of fees compared to a -2.19% return for the Russell 2000 Index. Investment in consumer staples, technology, and financial sectors contributed positively to the strategy’s performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Capital discussed stocks like Enstar Group Limited (NASDAQ:ESGR) in the Q3 2022 investor letter. Headquartered in  Hamilton, Bermuda, Enstar Group Limited (NASDAQ:ESGR) is an insurance group. On October 24, 2022, Enstar Group Limited (NASDAQ:ESGR) stock closed at $196.04 per share. One-month return of Enstar Group Limited (NASDAQ:ESGR) was 9.36% and its shares lost 16.63% of their value over the last 52 weeks. Enstar Group Limited (NASDAQ:ESGR) has a market capitalization of $3.446 billion.

Diamond Hill Capital made the following comment about Enstar Group Limited (NASDAQ:ESGR) in its Q3 2022 investor letter:

“Other bottom contributors included IT services company Rimini Street, timber REIT Rayonier and insurance group Enstar Group Limited (NASDAQ:ESGR). Increased interest rates pressured Enstar’s investment book — as a runoff consolidator, Enstar buys other companies’ non-core business lines and efficiently settles claims until the liabilities are exhausted. Our long-term conviction in the business remains unchanged.”

Enstar Group Limited (NASDAQ:ESGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Enstar Group Limited (NASDAQ:ESGR) at the end of the second quarter, which was 8 in the previous quarter.

We discussed Enstar Group Limited (NASDAQ:ESGR) in another article and shared best stocks to invest in according to Chinese billionaire Lei Zhang. In addition, please check out our hedge fund investor letters Q3 2022 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.