White Mountains Insurance Group Ltd (WTM) Traded Lower Due to Industry Headwinds

The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a downturn in Q1, U.S. stocks experienced a double-digit gain in Q2, amid volatility stemming from tariff news. A risk-on rally followed due to a temporary pause in tariff escalations, widespread optimism around enterprise AI, and a healthy earnings outlook. Against this backdrop, the portfolio fell 0.6% (-0.8% net) during the second quarter vs. an 8.6% increase in the Russell 2500 Index. Sector allocation contributed to the fund’s performance in the quarter, while stock selection detracted. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, The London Company SMID Cap Strategy highlighted stocks such as White Mountains Insurance Group, Ltd. (NYSE:WTM). Headquartered in Hamilton, Bermuda, White Mountains Insurance Group, Ltd. (NYSE:WTM) is an insurance and other financial services provider. The one-month return of White Mountains Insurance Group, Ltd. (NYSE:WTM) was -0.34%, and its shares gained 3.45% of their value over the last 52 weeks. On July 28, 2025, White Mountains Insurance Group, Ltd. (NYSE:WTM) stock closed at $1,789.56 per share, with a market capitalization of $4.606 billion.

The London Company SMID Cap Strategy stated the following regarding White Mountains Insurance Group, Ltd. (NYSE:WTM) in its second quarter 2025 investor letter:

“White Mountains Insurance Group, Ltd. (NYSE:WTM) – WTM was a bottom name after facing industry headwinds. For U.S. P&C insurers, performance was mundane in 2Q, whereas the rest of the market had a rebound. We remain confident in the company’s ability to deliver outsized growth in book value per share over time through prudent capital allocation.”

Is White Mountains Insurance Group, Ltd. (WTM) the Highest-Priced Stock Right Now?

A view of the skyline with a corporate high-rise building, symbolizing the power of the company’s financial services.

White Mountains Insurance Group, Ltd. (NYSE:WTM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held White Mountains Insurance Group, Ltd. (NYSE:WTM) at the end of the first quarter, which was 18 in the previous quarter. While we acknowledge the risk and potential of White Mountains Insurance Group, Ltd. (NYSE:WTM) 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 White Mountains Insurance Group, Ltd. (NYSE:WTM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered White Mountains Insurance Group, Ltd. (NYSE:WTM) and shared River Road Small-Mid Cap Value Fund’s views in the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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