Why Kemper Corp (KMPR) Stock is a Compelling Investment Case

Brown Advisory recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Small-Cap Fundamental Value Fund posted a return of 20.59% for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 18.91% in the same quarter. You should check out Brown Advisory’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Brown Advisory highlighted a few stocks and Kemper Corp (NYSE:KMPR) is one of them. Kemper Corp (NYSE:KMPR) is an insurance provider. Year-to-date, Kemper Corp (NYSE:KMPR) stock gained 2.5% and on July 23rd it had a closing price of $79.46. Here is what Brown Advisory said:

“Kemper Corporation is a diversified insurance provider with a profitable specialty segment offering nonstandard private auto insurance coverage. The company is efficiently run by a disciplined management team and trades at an attractive valuation. As a result of well-executed acquisitions and organic growth, specialty now contributes to more than two thirds’ of Kemper’s net earned premiums. It is complemented by an improving preferred property and casualty business and stable life and health insurance operation that produces consistent cash flow.”

In Q1 2020, the number of bullish hedge fund positions on Kemper Corp (NYSE:KMPR)  stock decreased by about 35% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Kemper’s growth potential. Our calculations showed that Kemper Corp (NYSE:KMPR)  isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so we are checking out this under-the-radar lithium stock. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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