Should You Liquidate Your Position in ProAssurance Corporation (PRA)?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 5.77% (net), compared to a 7.58% return for the Russell 2000 Growth Index. Despite a decline in many equity markets in January, they rebounded over the following two months, resulting in a robust 2024 first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like ProAssurance Corporation (NYSE:PRA), in the first quarter 2024 investor letter. ProAssurance Corporation (NYSE:PRA) offers property and casualty insurance, and reinsurance products. The one-month return of ProAssurance Corporation (NYSE:PRA) was -14.06%, and its shares lost 15.16% of their value over the last 52 weeks. On June 18, 2024, ProAssurance Corporation (NYSE:PRA) stock closed at $12.54 per share with a market capitalization of $643.263 million.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding ProAssurance Corporation (NYSE:PRA) in its first quarter 2024 investor letter:

"In the Financials sector we tend to avoid banks that face credit deterioration or rising deposit costs, preferring asset managers, niche insurance companies, and niche fintech providers. ProAssurance Corporation (NYSE:PRA) provides professional liability and workers’ compensation insurance. Mixed fourth quarter business line results caused its earnings to fall short of Street projections and led to a -7% pullback. Professional liability results surpassed projections as the accident year loss ratio was lower than expected, while workers’ compensation experienced an increase in average claim costs and lower net earned premium. We reduced the position with plans to liquidate."

A business executive in the company office, confidently leading the team.

ProAssurance Corporation (NYSE:PRA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held ProAssurance Corporation (NYSE:PRA) at the end of the first quarter which was 14 in the previous quarter. While we acknowledge the potential of ProAssurance Corporation (NYSE:PRA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed ProAssurance Corporation (NYSE:PRA) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 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.