Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q3 2025, the portfolio lagged behind the Russell 1000. Similar to the second quarter, the US equity markets favored a risk-on approach, benefiting high-risk, high-momentum, and lower-quality factors. Although the portfolio’s focus on relatively modest, lower-risk, and high-quality factors contributed to the underperform ...

Core Viewpoint - Impax US Sustainable Economy Fund underperformed the Russell 1000 in Q3 2025, returning 7.33% compared to the index's 7.99%, due to a focus on lower-risk, high-quality factors in a risk-on market environment [1] Group 1: Fund Performance - The fund's performance in Q3 2025 was impacted by market conditions favoring high-risk and high-momentum stocks [1] - The portfolio's focus on modest, lower-risk investments contributed to its underperformance relative to the index [1] Group 2: The Progressive Corporation (NYSE:PGR) - The Progressive Corporation experienced a one-month return of -9.26% and a 52-week loss of 14.16%, with a market capitalization of $122.574 billion as of January 7, 2026 [2] - The company has a high Corporate Resilience Score and is involved in assessing the costs of climate change while providing affordable insurance [3] - Despite strong earnings growth, The Progressive Corporation faces challenges such as analyst concerns over policy growth, increased competition, and margin compression in the auto insurance sector [3] Group 3: Hedge Fund Interest - The Progressive Corporation ranked 30th among the most popular stocks among hedge funds, with 84 hedge fund portfolios holding its shares at the end of Q3 2025, down from 99 in the previous quarter [4]