Group 1: Giverny Capital Asset Management Performance - Giverny Capital Asset Management's portfolio returned 0.01% in Q4 2025, underperforming the S&P 500 which returned 2.66% [1] - Year-to-date, the fund achieved a return of 12.58%, compared to 17.88% for the S&P 500 [1] - The firm faced challenges in Q4 2025 and the calendar year, primarily due to underweighting in large technology companies and overweighting in smaller niche leaders [1] Group 2: Kinsale Capital Group, Inc. Overview - Kinsale Capital Group, Inc. (NYSE:KNSL) is a property and casualty insurance company founded in 2009 [2] - The one-month return for Kinsale Capital Group was -0.29%, and its shares declined by 12.09% over the past 52 weeks [2] - As of January 30, 2026, Kinsale's stock closed at $395.88 per share, with a market capitalization of $9.224 billion [2] Group 3: Kinsale Capital Group Competitive Advantage - Giverny Capital Asset Management has been adding to its position in Kinsale Capital Group during periods of weakness, indicating confidence in the company [3] - Kinsale is recognized for its efficient underwriting of low-cost property and casualty insurance for small and medium-sized clients [3] - The company utilizes advanced technology to quickly assemble data, allowing it to quote most policy submissions faster than competitors, with underwriters able to handle about 10 submissions per day compared to the industry average of 2-3 [3] - Kinsale maintains the lowest expense structure within its peer group, enhancing its competitive advantage [3]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Investment Opportunity - A specific company is highlighted as a potential investment opportunity, possessing critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI data centers [3][7] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the anticipated surge in electricity demand driven by AI technologies [3][6] Energy Demand and Infrastructure - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The company in focus owns nuclear energy infrastructure, making it a key player in the future of clean and reliable power in the U.S. [7] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, which is nearly one-third of its market capitalization [8] - It is trading at a low valuation of less than 7 times earnings, making it an attractive option for investors seeking exposure to AI and energy sectors [10] Market Trends - The company is positioned to capitalize on the onshoring trend driven by tariffs, as well as the surge in U.S. LNG exports under the current administration's energy policies [5][14] - There is a growing recognition on Wall Street of this company's potential, as it quietly benefits from multiple market tailwinds without the high valuations typical of other firms in the sector [8][9] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12] - The overall sentiment is that investing in AI is not just about financial returns but also about participating in a transformative technological revolution [15]

Company Overview - Kinsale Capital Group specializes in property and casualty insurance products, focusing on commercial lines such as construction, small business, excess and general casualty, commercial property, and various liability coverages [5] - The company operates as a specialty insurer with a national footprint, emphasizing complex, hard-to-place risks and leveraging deep underwriting expertise for profitable growth [8] - Kinsale generates revenue through underwriting insurance policies and managing risk, serving a diverse base of commercial clients across all 50 U.S. states, Puerto Rico, the U.S. Virgin Islands, and the District of Columbia [9] Financial Performance - For the trailing twelve months (TTM), Kinsale reported revenue of $1.80 billion and a net income of $474.09 million [4] - As of January 20, the company's share price was $405.12, reflecting a 7.6% decline over the prior year and underperforming the S&P 500 by approximately 20 percentage points [4] Recent Investment Activity - Jacobson & Schmitt Advisors increased its position in Kinsale Capital Group by purchasing 6,661 shares during the fourth quarter, with an estimated transaction value of $2.72 million based on quarterly average pricing [2][3][6] - Following this trade, the fund's total stake in Kinsale was valued at $16.78 million, an increase of $1.37 million from the previous quarter, attributed to both the additional shares and price movement [3][6] - The Kinsale Capital Group stake represented 2.82% of Jacobson & Schmitt Advisors' 13F reportable assets under management (AUM) after the trade [4]

Core Insights - The article discusses the potential of mid-cap stocks as attractive investment opportunities, particularly in the context of the "America First" agenda which aims to boost domestic manufacturing [2][3]. Industry Overview - The U.S. stock market is experiencing a shift with a growing interest in mid-cap stocks, which are expected to benefit from domestic revenue generation [2]. - Historically, mid-cap equities have outperformed both large-cap and small-cap stocks, although they have lagged behind large caps in the current year [3]. Hedge Fund Activity - Hedge funds are reportedly rotating out of large-cap stocks, with significant reductions in exposure to mega-cap stocks noted in Q3 2025 [4]. - Major hedge funds, such as Bridgewater Associates, have cut holdings in prominent stocks while increasing investments in mid-cap companies [4]. Methodology for Stock Selection - The article outlines a methodology for selecting high-growth mid-cap stocks, focusing on companies with market capitalizations between $2 billion and $10 billion and at least 30% revenue growth over five years [6]. Featured High-Growth Mid-Cap Stocks - **LifeStance Health Group, Inc. (NASDAQ:LFST)** - Market Capitalization: $2.82 billion - Revenue Growth (5Y): 36.75% - Analysts have raised price targets for LFST, indicating a positive outlook despite industry challenges [9][10][11][12]. - **Veracyte, Inc. (NASDAQ:VCYT)** - Market Capitalization: $3.29 billion - Revenue Growth (5Y): 34.46% - The company forecasts sales of $570 million to $582 million in 2026, exceeding consensus estimates [13][14][15]. - **Kinsale Capital Group, Inc. (NYSE:KNSL)** - Market Capitalization: $9.28 billion - Revenue Growth (5Y): 34.25% - Analysts have mixed views, with one firm initiating coverage with an Overweight rating while another lowered its price target due to anticipated near-term declines [16][17][18][19].

Core Viewpoint - Kinsale Capital Group, Inc. will release its financial results for Q4 2025 on February 12, 2026, after market close, and will host a conference call on February 13, 2026, to discuss these results with analysts and investors [1][2]. Group 1 - The financial results release is scheduled for February 12, 2026, after market close [1]. - A conference call will take place on February 13, 2026, at 9:00 a.m. Eastern Time to discuss the financial results [1]. - The conference call can be accessed by dialing (800) 715-9871 or through the company's website [2]. Group 2 - Kinsale Capital Group, Inc. is a specialty insurance group based in Richmond, Virginia, focusing on the excess and surplus lines market [3].

Core Viewpoint - Kinsale Capital (KNSL) is identified as a buy due to its status as a long-term quality compounder that consistently generates profits and is well-positioned in a growing Excess and Surplus (E&S) market [1] Company Analysis - Kinsale Capital demonstrates consistent profitability, which is a key factor in its investment appeal [1] - The company is strategically positioned to benefit from the growth in the E&S market, indicating potential for future expansion and revenue growth [1] Industry Context - The E&S market is experiencing growth, which bodes well for companies like Kinsale Capital that operate within this sector [1]

Company Performance - Kinsale Capital Group, Inc. (KNSL) closed at $391.12, reflecting a -1.14% change from the previous day, underperforming the S&P 500's daily loss of 0.74% [1] - Over the past month, KNSL shares have increased by 5.28%, while the Finance sector gained 2.1% and the S&P 500 rose by 0.79% [1] Upcoming Earnings - Analysts expect Kinsale Capital Group, Inc. to report earnings of $5.24 per share, indicating a year-over-year growth of 13.42% [2] - The consensus estimate for revenue is $471.37 million, which represents a 14.38% increase from the prior-year quarter [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $18.9 per share and revenue of $1.86 billion, reflecting changes of +17.68% and +17.25% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Kinsale Capital Group, Inc. are important as they often reflect shifting business dynamics, with positive revisions indicating analyst optimism [4] Zacks Rank and Valuation - Kinsale Capital Group, Inc. currently holds a Zacks Rank of 3 (Hold), with the consensus EPS projection having moved 0.09% higher in the past 30 days [6] - The company is trading at a Forward P/E ratio of 20.93, which is a premium compared to the industry average Forward P/E of 11.51 [7] PEG Ratio - KNSL has a PEG ratio of 1.42, which is lower than the average PEG ratio of 1.67 for the Insurance - Property and Casualty industry [8] Industry Overview - The Insurance - Property and Casualty industry is part of the Finance sector and currently holds a Zacks Industry Rank of 45, placing it in the top 19% of over 250 industries [9]

Group 1 - The Conservative Income Portfolio focuses on value stocks with high margins of safety and utilizes well-priced options to reduce volatility [1] - The Enhanced Equity Income Solutions Portfolio aims to generate yields of 7-9% while minimizing volatility [1] - Kinsale Capital Group, Inc. specializes in property and casualty insurance for hard-to-place small business and personal lines risks [2] Group 2 - Trapping Value is a team with over 40 years of combined experience in generating options income and capital preservation [2] - The Conservative Income Portfolio is managed in partnership with Preferred Stock Trader, featuring two income-generating portfolios and a bond ladder [2] - The Covered Calls Portfolio is designed for lower volatility income investing with a focus on capital preservation [2]

Core Viewpoint - Investors interested in Property and Casualty insurance stocks may find Axis Capital (AXS) to be a more attractive option compared to Kinsale Capital Group, Inc. (KNSL) due to its better valuation metrics and improving earnings outlook [1]. Valuation Metrics - Axis Capital has a forward P/E ratio of 8.62, significantly lower than Kinsale Capital's forward P/E of 21.00 [5]. - The PEG ratio for AXS is 1.06, while KNSL has a PEG ratio of 1.42, indicating AXS may offer better value relative to its expected earnings growth [5]. - AXS has a P/B ratio of 1.45 compared to KNSL's P/B of 4.95, further suggesting that AXS is undervalued [6]. Earnings Outlook - AXS currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while KNSL has a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for AXS makes it a standout option in the Zacks Rank model [7]. Value Grades - Based on various valuation metrics, AXS holds a Value grade of B, whereas KNSL has a Value grade of C, reinforcing AXS's position as the superior value option [6].

Core Insights - A group of five growth stocks is highlighted as potential multibaggers for long-term investors, despite recent declines of 22% to 55% from their 52-week highs [1][2] Group 1: Rocket Lab USA - Rocket Lab USA has seen its sales increase nearly tenfold since its IPO in 2021, positioning it as the No. 3 player in the launch services industry [4][5] - The company is expected to launch its Neutron rocket in Q1 next year, which could enhance its competitive stance against larger peers like SpaceX [4] - The space industry is projected to grow from $630 billion in 2023 to $1.8 trillion by 2035, indicating significant growth potential for Rocket Lab, which has a current market cap of $28 billion [7] - Rocket Lab's gross margin stands at 28.93%, and shares are currently 20% below their high, making it an attractive investment opportunity [9] Group 2: Kinsale Capital - Kinsale Capital Group has delivered a 39% total return since its 2016 IPO, with a combined ratio of 77%, outperforming peers with an average of 92% [10][11] - The company focuses on small, hard-to-assess risks, which has allowed it to carve out a profitable niche, although its revenue growth slowed to 19% in the latest quarter due to increased pricing competition [12] - Kinsale's stock is down 24% due to this growth slowdown, presenting a potential buying opportunity [13] Group 3: MercadoLibre - MercadoLibre has transformed from $85 million in sales at its 2007 IPO to $26 billion today, making it a 70-bagger [14] - The company operates in a market where online buying penetration in Latin America is only half that of the U.S., indicating further growth potential [15] - MercadoLibre's logistics network supports its e-commerce and fintech operations, and the stock has dipped 23% from its July 2025 highs, making it a favorable buy [16] Group 4: SPS Commerce - SPS Commerce has delivered 18% annualized returns since 2010, with sales growing 26 times in value during that period [17] - The company has achieved 99 consecutive quarters of positive sales growth, although its growth rate has decelerated, leading to a 55% drop in stock price over the last year [18] Group 5: Dutch Bros - Dutch Bros has seen a 14% annual stock price increase since 2021 and aims to expand from 1,089 locations to 2,029 by 2029 [20] - The company plans to buy back shares using at least half of its free cash flow, marking a shift from previous reliance on issuing new shares [21][22] - Despite trading at 40 times cash from operations, the growth potential could make it a multibagger if expansion goals are met [23]