Friday, February 13

Greenhaven Road Capital’s Updates on Kingsway Financial (KFS)


Greenhaven Road Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned approximately -9%, bringing the YTD returns to approximately -9%. The factors that affected the portfolio during the quarter included a lack of direct investment in AI, no overlap with the S&P 500 and Russell 2000, and insufficient ownership of small, high growth, yet unprofitable companies that have driven the recent rally and benefited from the current AI landscape. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Greenhaven Road Capital highlighted stocks such as Kingsway Financial Services Inc. (NYSE:KFS). Headquartered in Chicago, Illinois, Kingsway Financial Services Inc. (NYSE:KFS) engages in extended warranty and business services. The one-month return of Kingsway Financial Services Inc. (NYSE:KFS) was -19.28%, and its shares gained 45.31% of their value over the last 52 weeks. On November 7, 2025, Kingsway Financial Services Inc. (NYSE:KFS) stock closed at $13.02 per share, with a market capitalization of $375.932 million.

Greenhaven Road Capital stated the following regarding Kingsway Financial Services Inc. (NYSE:KFS) in its third quarter 2025 investor letter:

“Kingsway Financial Services Inc. (NYSE:KFS): I wrote about Kingsway extensively in our Q1 letter (link). Search funds have historically generated annual returns in excess of 30% but they have been hard to access with any scale and they are inherently illiquid.

Kingsway Financial Services Inc. (NYSE:KFS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 5 hedge fund portfolios held Kingsway Financial Services Inc. (NYSE:KFS) at the end of the second quarter, up from 4 in the previous quarter.  In the third quarter, Kingsway Financial Services Inc. (NYSE:KFS) reported consolidated revenue was $37.2 million, an increase of 37% compared to $27.1 million in the prior year. While we acknowledge the potential of Kingsway Financial Services Inc. (NYSE:KFS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Greenhaven Road Capital initiated a position in Kingsway Financial Services Inc. (NYSE:KFS) in Q1 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.



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