Kinsale Capital Group (KNSL) Reported Better-Than-Expected Growth in Q1

Baron Funds, an investment management company, released its “Baron Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2025, the fund was down 9.07% (Institutional Shares) compared to the Russell 2000 Growth Index’s (the Index) -11.12% return. Small-cap stocks continued to underperform larger market caps meaningfully, so the Fund lagged the Russell 3000 Index, which fell 4.72% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Baron Small Cap Fund highlighted stocks such as Kinsale Capital Group, Inc. (NYSE:KNSL). Founded in 2009, Kinsale Capital Group, Inc. (NYSE:KNSL) is a property and casualty insurance company. The one-month return of Kinsale Capital Group, Inc. (NYSE:KNSL) was 9.29%, and its shares gained 18.27% of their value over the last 52 weeks. On May 23, 2025, Kinsale Capital Group, Inc. (NYSE:KNSL) stock closed at $463.61 per share with a market capitalization of $10.807 billion.

Baron Small Cap Fund stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its Q1 2025 investor letter:

“Specialty insurer Kinsale Capital Group, Inc. (NYSE:KNSL) contributed to performance due to continued growth in the company’s end market and the relative stability of insurance stocks in a risk-off market. The company reported better-than-expected earnings in the most recent quarter, despite slowing premium growth. Earnings per share grew 19% and return on equity remained elevated at 30% due to strong underwriting margins and higher investment income. Excess & Surplus insurance market conditions remain favorable with recent data indicating continued double-digit growth due to share gains from the Standard market. We believe Kinsale is well managed and has a long runway for growth in an attractive segment of the insurance market.”

Jim Cramer on Kinsale Capital Group, Inc. (KNSL) – “Very Good Group, Very Good Stock – I Would Own It”

A Professional insurance broker discussing coverage plans with a small business owner.

Kinsale Capital Group, Inc. (NYSE:KNSL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Kinsale Capital Group, Inc. (NYSE:KNSL) at the end of the first quarter, which was 36 in the previous quarter. While we acknowledge the potential of Kinsale Capital Group, Inc. (NYSE:KNSL) 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 Kinsale Capital Group, Inc. (NYSE:KNSL) and shared the list of stocks on Jim Cramer’s radar. Madison Mid Cap Fund initiated a position in Kinsale Capital Group, Inc. (NYSE:KNSL) in Q1 2025. 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.