The Progressive Corporation (PGR) Declined Due to Industry Pricing Volatility

Wedgewood Partners, an investment management company, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Wedgewood Composite’s Net return was 9.8% compared to the Standard & Poor’s Index’s 7.5%, Russell 1000 Growth Index’s 14.4%, and Russell 1000 Value Index’s 1.0% return for the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Wedgewood Partners highlighted stocks The Progressive Corporation (NYSE:PGR) in the first quarter 2023 investor letter. Headquartered in Mayfield Village, Ohio, The Progressive Corporation (NYSE:PGR) is an insurance holding company. On April 14, 2023, The Progressive Corporation (NYSE:PGR) stock closed at $135.85 per share. One-month return of The Progressive Corporation (NYSE:PGR) was -2.32%, and its shares gained 23.91% of their value over the last 52 weeks. The Progressive Corporation (NYSE:PGR) has a market capitalization of $79.522 billion.

Wedgewood Partners made the following comment about The Progressive Corporation (NYSE:PGR) in its Q1 2023 investor letter:

The Progressive Corporation (NYSE:PGR) also contributed less to performance than most portfolio holdings during the quarter. Progressive reported excellent absolute and relative premium and policies in force (PIF) growth through February. We think much of this has been driven by the Company’s highly disciplined approach to policy pricing and is a by-product of years of methodically investing in incremental market segmentation intelligence, most notably telematics. Although Progressive is reaping the relative, competitive rewards of the recent industry pricing volatility, we think the stock currently reflects this reality, and we recently exited our remaining position in the Company. We continue to think Progressive is well run and we will monitor the business and industry, particularly as it relates to balance sheet exposure to the domestic financial services industry.”

The Progressive Corporation (NYSE:PGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held The Progressive Corporation (NYSE:PGR) at the end of the fourth quarter which was 63 in the previous quarter.

We discussed The Progressive Corporation (NYSE:PGR) in another article and shared the list of biggest global insurance companies by market cap. In addition, please check out our hedge fund investor letters Q1 2023 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.