Should You Invest Your Hard Earned Money in Progressive Corp. (PGR)?

Ariel Investments, an investment management firm, published its “Ariel Fund & Ariel Appreciation Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -0.17% was recorded by the Fund for the third quarter of 2021, compared to the Russell 2500TM Value Index, Russell 2500TM Index, and S&P 500® Index which had a -2.07%, -2.68%, and 0.58% returns respectively for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Ariel Fund & Ariel Appreciation Fund, in its Q3 2021 investor letter, mentioned The Progressive Corporation (NYSE: PGR) and discussed its stance on the firm. The Progressive Corporation is a Mayfield, Ohio-based insurance company with a $60.2 billion market capitalization. PGR delivered a 4.19% return since the beginning of the year, while its 12-month returns are up by 6.97%. The stock closed at $103.02 per share on December 16, 2021.

Here is what Ariel Fund & Ariel Appreciation Fund has to say about The Progressive Corporation  in its Q3 2021 investor letter:

“Conversely, after being the top contributor last year, personal auto insurer, Progressive Corporation (PGR) was the greatest detractor to performance over the trailing one-year period. While PGR continues to drive solid policy growth, the reopening economy has fueled an uptick in accident frequency and supply chain disruptions, which have increased repair costs. Looking ahead, we expect policy rate increases to offset these headwinds and believe PGR will continue to benefit from its digital presence, bundling strategy, and commercial insurance expansion.”

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Based on our calculations, The Progressive Corporation (NYSE: PGR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. PGR was in 47 hedge fund portfolios at the end of the third quarter of 2021, compared to 44 funds in the previous quarter. The Progressive Corporation (NYSE: PGR) delivered a 10.79% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on PGR in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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