Is Global Indemnity Group, LLC (GBLI) a Strong Investment?
Investment management company Cove Street Capital recently released its “Small Cap Value Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.15% compared to -2.19% for the Russell 2000 Index and -4.61% for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Cove Street Capital highlighted stocks like Global Indemnity Group, LLC (NYSE:GBLI) in its third-quarter investor letter. Headquartered in Bala Cynwyd, Pennsylvania, Global Indemnity Group, LLC (NYSE:GBLI) is an insurance provider. On November 25, 2022, Global Indemnity Group, LLC (NYSE:GBLI) stock closed at $23.67 per share. One-month return of Global Indemnity Group, LLC (NYSE:GBLI) was -2.07% and its shares lost 9.48% of their value over the last 52 weeks. Global Indemnity Group, LLC (NYSE:GBLI) has a market capitalization of $345.951 million.
Cove Street Capital made the following comment about Global Indemnity Group, LLC (NYSE:GBLI) in its Q3 2022 investor letter:
"Global Indemnity Group, LLC (NYSE:GBLI) “held in there” as it remains one of the cheapest stocks that we own at 50% of book value. A gaggle of ex-Berkshire Hathaway insurance alums run the specialty insurer, but the biggest issue going forward is that the company is a partnership, not a C-Corp that limits its “buy-ability” to the institutional investor community. That also brings up the other risk: the Chairman is the voting control owner. We have mixed emotions about whether he is “stealing with us” or “stealing from us.” It is a classic value investment: we believe that the “value” creates a “margin of safety” that potentially compensates us for these issues. Our research suggests minimal downside with a target price nearly double current value."
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Global Indemnity Group, LLC (NYSE:GBLI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Global Indemnity Group, LLC (NYSE:GBLI) at the end of the third quarter, which was 6 in the previous quarter.
We discussed Global Indemnity Group, LLC (NYSE:GBLI) in another article and shared Artko Capital's views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
