London Company is an investment management company that released the "London Company Small CAP Strategy" in the first quarter of 2025. A copy of the letter can be downloaded here. U.S. stocks were corrected in the first quarter of 1Q25 due to macro risks, weak economic growth and inflation. The fund fell 6.9% (-7.1%, net), while the Russell 2000 index fell 9.5%. The positive impact of stock selection contributes to the relative performance of the strategy for the quarter, partially offset by departmental exposure. For more information on the top five of the funds in 2025, check out its top five.

London's small CAP strategy highlighted shares such as Hannover Insurance Group (NYSE:THG) in its first-quarter 2025 investor letter. Hanover Insurance Group, Inc. (NYSE: THG) is a U.S.-based insurer that provides a wide range of property and casualty insurance products and services. Hanover Insurance Group, Inc. (NYSE:THG) has a one-month return of 4.86%, and its stock has accounted for 24.02% of its value over the past 52 weeks. On May 12, 2025, Hannover Insurance Group (NYSE: THG) stock closed at US$167.57 per share, with a market value of US$6.02 billion.

London Company’s small CAP strategy pointed out the following about Hannover Insurance Group (NYSE:THG) in its 2025 investor letter in its Q1 Investor Letter:

“Hannover Insurance Group (NYSE: THG): THG performed superiorly in the quarter due to strong 4Q24 earnings and 2025 outlook. The paper is working as the company normalizes its profit margins after a series of underwriting actions. We love a culture that focuses on underwriting, a competitive niche positioning and a keen management team. ”

A woman is smiling in her car and checking her insurance documents.

Hanover Insurance Group, Inc. (NYSE:THG) is not among the 30 most popular stocks in hedge funds. According to our database, the 31 hedge fund portfolio holds Hannover Insurance Group (NYSE: THG) at the end of the fourth quarter of the previous quarter. Although we acknowledge the potential of Hannover Insurance Group (NYSE:THG) as an investment, our belief is that AI stocks have greater hope to offer higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but have less than 5 times its earnings, check out our report Cheapest AI stocks.

In another article, we introduce what Hannover Insurance Group (NYSE: THG) and Shared Heartland Value Plus Fund think about the company. Also, check out our Hedge Fund Investor Letters Q1 2025 page for more investors in hedge funds and other leading investors.