White Mountains Insurance Group, Ltd. (WTM) Declined on Banking Sector Turmoil
The London Company, an investment management company, released “The London Company Small Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 7.7% gross (7.5% net), compared to a 2.7% return for the Russell 2000 Index. The portfolio reported strong relative and absolute returns in the quarter that exceeded expectations. The outperformance of the fund in the quarter was due to strong stock selection and limited exposure to banks. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small Cap Strategy highlighted stocks like White Mountains Insurance Group, Ltd. (NYSE:WTM) in the Q1 2023 investor letter. Headquartered in Hamilton, Bermuda, White Mountains Insurance Group, Ltd. (NYSE:WTM) is an insurance and other financial services provider. On June 30, 2023, White Mountains Insurance Group, Ltd. (NYSE:WTM) stock closed at $1,388.91 per share. One-month return of White Mountains Insurance Group, Ltd. (NYSE:WTM) was -2.79%, and its shares gained 10.31% of their value over the last 52 weeks. White Mountains Insurance Group, Ltd. (NYSE:WTM) has a market capitalization of $3.56 billion.
The London Company Small Cap Strategy made the following comment about White Mountains Insurance Group, Ltd. (NYSE:WTM) in its first quarter 2023 investor letter:
"White Mountains Insurance Group, Ltd. (NYSE:WTM) - Shares of WTM underperformed, reflecting the recent turmoil triggered by SIVB and other banks. Meanwhile, that situation also brought additional scrutiny to accumulated other comprehensive income (AOCI) on other financial companies' balance sheets, including insurers (who aren't subject to the same duration mismatch as banks). As a result, insurers were down across the board, including WTM, resulting in relative underperformance. We do not believe the market fully appreciates the differences between bank balance sheets and insurer balance sheets."
White Mountains Insurance Group, Ltd. (NYSE:WTM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held White Mountains Insurance Group, Ltd. (NYSE:WTM) at the end of first quarter 2023 which was 16 in the previous quarter.
We discussed White Mountains Insurance Group, Ltd. (NYSE:WTM) in another article and shared the list of low float stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.
