Is it a Good Time to Invest in BRP Group (BRP) Today?
Madison Funds, managed by Madison Asset Management, LLC, released its “Madison Small Cap Fund” third quarter 2022 investor letter – a copy of which can be downloaded here. The Russell 2000 declined 2.2% and the Madison Small Cap Fund (Class Y) underperformed the benchmark. With the exception of Energy and Healthcare, all sectors delivered negative returns. Both sector allocation and stock selection hurt our relative performance. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Madison Small Cap Fund mentioned BRP Group, Inc. (NASDAQ:BRP) and explained its insights for the company. Founded in 2011, BRP Group, Inc. (NASDAQ:BRP) is a Tampa, Florida-based insurance company with a $1.6 billion market capitalization. BRP Group, Inc. (NASDAQ:BRP) delivered a -26.14% return since the beginning of the year, while its 12-month returns are up by -29.70%. The stock closed at $26.67 per share on November 02, 2022.
Here is what Madison Small Cap Fund has to say about BRP Group, Inc. (NASDAQ:BRP) in its Q3 2022 investor letter:
"BRP Group (NASDAQ:BRP) operates as one of largest middle market insurance brokers in a highly fragmented domestic market. Historically, insurance brokerage has been very resilient in economic downturns. Their unique acquisition strategy in a highly fragmented industry should lead to above-average growth for many years. We also like BRP's organic growth characteristics due to their exposure in middle market brokerage. BRP has attractive margins with room for meaningful expansion. The market selloff gave us an opportunity to initiate this new investment at very attractive prices. We estimate BRP’s private market value to be $35."
Our calculations show that BRP Group, Inc. (NASDAQ:BRP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. BRP Group, Inc. (NASDAQ:BRP) was in 14 hedge fund portfolios at the end of the second quarter of 2022, compared to 21 funds in the previous quarter. BRP Group, Inc. (NASDAQ:BRP) delivered a -5.83% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
