ProAssurance Corporation (PRA): The Single Largest Contributor to The Third Avenue Small-Cap Value Fund’s Performance

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Small-Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned -4.54% compared to -5.87% % for the MSCI USA Small-Cap Value Index (the “Index”) and -7.74% return for the Russell 2000 Value Index. The Fund has returned +15.46%, annualized, for the trailing five-year period. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted stocks such as ProAssurance Corporation (NYSE:PRA). ProAssurance Corporation (NYSE:PRA) offers property and casualty insurance and reinsurance products. The one-month return of ProAssurance Corporation (NYSE:PRA) was -1.67%, and its shares gained 55.01% of their value over the last 52 weeks. On May 8, 2025, ProAssurance Corporation (NYSE:PRA) stock closed at $22.91 per share with a market capitalization of $1.175 billion.

Third Avenue Small-Cap Value Fund stated the following regarding ProAssurance Corporation (NYSE:PRA) in its Q1 2025 investor letter:

“Performance during the quarter was led by positive contributions from a wide range of individual businesses and idiosyncratic developments. In March, specialty insurance provider ProAssurance Corporation (NYSE:PRA) announced that it has agreed to a takeover offer from The Doctor’s Company. At $25 per share, the purchase price represents an approximate 60% premium to the pre-offer trading price, highlighting the value that was embedded within the shares and leading to ProAssurance generating the single largest contribution to quarterly Fund performance.”

Why ProAssurance Corp. (PRA) Surged On Thursday?

A business executive in the company office, confidently leading the team.

ProAssurance Corporation (NYSE:PRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held ProAssurance Corporation (NYSE:PRA) at the end of the fourth quarter which was 16 in the previous quarter. While we acknowledge the potential of ProAssurance Corporation (NYSE:PRA) 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 cheapest AI stock.

In another article, we covered ProAssurance Corporation (NYSE:PRA) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.