A Confluence of Headwinds Affected Palomar (PLMR) in Q3

3 days ago 6

Soumya Eswaran

Tue, December 16, 2025 astatine 7:11 AM CST 3 min read

Riverwater Partners, an concern absorption company, released its “Small Cap Strategy” Q3 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Small Cap Core Strategy reported coagulated results for the 4th but did not support gait with the crisp rally, frankincense lagging the benchmark. The market’s penchant for lower-quality companies persisted successful the 4th and contributed importantly to the benchmark’s outperformance. On the different hand, the strategy remains focused connected higher-quality companies with enduring fundamentals, accordant revenue, and a transparent way to profitability. The steadfast powerfully believes that the strategy is well-positioned successful the challenging quarter. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Riverwater Partners Small Cap Strategy highlighted stocks specified arsenic Palomar Holdings, Inc. (NASDAQ:PLMR). Palomar Holdings, Inc. (NASDAQ:PLMR), with a marketplace capitalization of $3.362 billion, is simply a specialty security company. The one-month instrumentality of Palomar Holdings, Inc. (NASDAQ:PLMR) was -3.16%, and its shares gained 12.93% of their worth implicit the past 52 weeks. On December 15, 2025, Palomar Holdings, Inc. (NASDAQ:PLMR) banal closed astatine $125.52 per share.

Riverwater Partners Small Cap Strategy stated the pursuing regarding Palomar Holdings, Inc. (NASDAQ:PLMR) successful its 3rd 4th 2025 capitalist letter:

"Palomar Holdings, Inc.'s (NASDAQ:PLMR) banal underperformance successful Q3 apt reflects a confluence of headwinds: weaker commercialized marketplace pricing pressure, a broader rotation distant from defensive, insurance-oriented names into much cyclically exposed “risk on” sectors, and capitalist concerns astir underwriting borderline compression. In particular, complaint reductions successful the commercialized earthquake and spot markets person squeezed premium renewal yields, pressuring maturation successful the halfway book. Meanwhile, with markets rallying down growthier, much volatile sectors, superior whitethorn person rotated retired of specialty insurers similar Palomar successful favour of higher beta plays. That said, the sanction inactive merits attention: the institution has beardown visibility into premium maturation via its multi-year complaint plans, on with enlargement into much diversified lines similar casualty and harvest security that connection structural premium growth. Combined with a precocious instrumentality connected equity and proven quality to reinvest superior efficiently, Palomar retains upside if marketplace sentiment yet rotates backmost to prime security franchises."

Why Fabrinet (FN) Just Got a Major Upgrade From JPMorgan

Palomar Holdings, Inc. (NASDAQ:PLMR) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge money portfolios held Palomar Holdings, Inc. (NASDAQ:PLMR) astatine the extremity of the 3rd quarter, which was 28 successful the erstwhile quarter. In Q3 2025, Palomar Holdings, Inc.'s (NASDAQ:PLMR) reported adjusted nett income of $55.2 cardinal oregon $2.01 per stock compared to adjusted nett income of $32.4 cardinal oregon $1.23 per stock for Q3 2024. While we admit the imaginable of Palomar Holdings, Inc. (NASDAQ:PLMR) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.