Spyglass Capital Management LLC, an investment management firm, released its second-quarter investor letter for “Spyglass Growth Strategy”. A copy of the letter can be downloaded here. Spyglass Growth Strategy appreciated 24.63% in the second quarter, significantly outperforming the Bloomberg Midcap Growth Index’s 14.05% increase, the Bloomberg 2500 Growth Index’s 19.01% gain, and the Bloomberg 500 Index’s 15.61% return for the same period. The Strategy’s performance in Q2 was a reversal from Q2 driven by easing geopolitical tensions, notably a US-Iran ceasefire, declining oil prices, and a rebound in software stocks after early-year volatility. Small caps and growth stocks outperformed, with Technology, Industrials, and Financials leading sectors. The portfolio’s earnings growth remains above 40%, while current valuations do not yet reflect this performance. Despite recent portfolio success—85% of companies exceeding revenue estimates—the overall portfolio faces multiple compression with a slight negative year-to-date return. However, the firm remains confident that fundamentals will prevail over volatility, emphasizing that the market’s short-term inefficiencies may present opportunities for value extraction. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, the Spyglass Growth Strategy highlighted Kinsale Capital Group, Inc. (NYSE:KNSL). Founded in 2009, Kinsale Capital Group, Inc. (NYSE:KNSL) is a property and casualty insurance company. On July 30, 2026, Kinsale Capital Group, Inc. (NYSE:KNSL) closed at $355.87 per share. The one-month return of Kinsale Capital Group, Inc. (NYSE:KNSL) was 0.29%, and its shares lost 19.94% over the past 52 weeks. Kinsale Capital Group, Inc. (NYSE:KNSL) has a market capitalization of $8.11 billion.
Spyglass Growth Strategy stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q2 2026 investor update:
“Kinsale Capital Group, Inc. (NYSE:KNSL), a specialty insurance company, was sold during the second quarter. We believe the excess and surplus insurance market is in the midst of a pricing cycle transition, with prior high returns now pulling in excess capacity and intensifying competition. As a result, we determined the cone of outcomes had widened materially for Kinsale, and we decided to exit our position and reallocate capital to other opportunities.”
Kinsale Capital Group, Inc. (NYSE:KNSL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held Kinsale Capital Group, Inc. (NYSE:KNSL) at the end of the first quarter, up from 32 in the previous quarter. While we acknowledge the risk and potential of Kinsale Capital Group, Inc. (NYSE:KNSL) 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 Kinsale Capital Group, Inc. (NYSE:KNSL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Kinsale Capital Group, Inc. (NYSE:KNSL) and shared the list of most profitable growth stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 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.
