What Makes RLI Corp. (RLI) a Truly Elite Operator in the Industry?

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%.  It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, LRT Global Opportunities Strategy highlighted stocks such as RLI Corp. (NYSE:RLI). RLI Corp. (NYSE:RLI) is an insurance holding company. The one-month return of RLI Corp. (NYSE:RLI) was -4.40%, and its shares lost 15.69% of their value over the last 52 weeks. On October 6, 2025, RLI Corp. (NYSE:RLI) stock closed at $64.12 per share, with a market capitalization of $5.888 billion.

LRT Global Opportunities Strategy stated the following regarding RLI Corp. (NYSE:RLI) in its third quarter 2025 investor letter:

“RLI Corp. (NYSE:RLI) stands as a premier specialty insurance company, a category-defining enterprise that has distinguished itself through a culture of exceptional underwriting discipline. For decades, the company has successfully navigated the complexities of the property and casualty market by adhering to a simple, yet powerful, philosophy: consistently generate an underwriting profit. This unwavering focus, a true rarity in the insurance industry, has allowed RLI to build a formidable competitive moat and a remarkable track record of compounding shareholder value.

The cornerstone of RLI’s success is its deep-seated expertise in niche, underserved markets. The company deliberately avoids commoditized insurance lines where competition is based primarily on price. Instead, it seeks out complex and specialized risks where its superior underwriting knowledge allows it to accurately price policies and earn an attractive return. This strategy is executed by a highly experienced and empowered team of underwriters who are incentivized to prioritize profitability over top-line growth. This disciplined approach means RLI is willing to shrink its business in certain areas when pricing becomes inadequate, a testament to its long-term perspective. …” (Click here to read the full text)

In another article, we covered RLI Corp. (NYSE:RLI) and shared the list of best stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.