What Makes Everest Group LTD (EG) an Investment Bet?

Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The market rallied in the quarter, as the recession fears waned, and market sentiment shifted toward increased risk-taking. The fund lost 0.22% in the quarter compared to the 5.35% gain for the Russell Midcap® Value Index. Stock selection led to most of the underperformance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Heartland Mid Cap Value Fund highlighted stocks such as Everest Group, Ltd. (NYSE:EG). Everest Group, Ltd. (NYSE:EG) offers insurance and reinsurance products. The one-month return of Everest Group, Ltd. (NYSE:EG) was 0.06%, and its shares lost 14.36% of their value over the last 52 weeks. On July 11, 2025, Everest Group, Ltd. (NYSE:EG) stock closed at $339.35 per share with a market capitalization of $14.434 billion.

Heartland Mid Cap Value Fund stated the following regarding Everest Group, Ltd. (NYSE:EG) in its second quarter 2025 investor letter:

Financials. During the quarter, we initiated a position in Everest Group, Ltd. (NYSE:EG), a Deep Value global insurer with a long history of operating in the property natural catastrophe (NatCat) reinsurance market. Property & casualty underwriters such as Allstate, Progressive, and GEICO purchase NatCat reinsurance to protect their balance sheets against major weather events including hurricanes and earthquakes.

NatCat reinsurance is a commodity business where supply and demand dictate terms. When times are good, capacity enters the market, diminishing returns through competition. As a result, the return on equity (ROE) for the industry tends to be more volatile than for primary underwriters…” (Click here to read the full text)

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A financial adviser in a suit talking with a senior client about their life insurance policy.

Everest Group, Ltd. (NYSE:EG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Everest Group, Ltd. (NYSE:EG) at the end of the first quarter, which was 47 in the previous quarter. In the first quarter of2025, Everest Group, Ltd. (NYSE:EG) reported $210 million in net income compared to $733 million in Q1 2024. While we acknowledge the risk and potential of EG 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 EG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Everest Group, Ltd. (NYSE:EG) and shared the list of most undervalued insurance stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.