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Greenhaven Road Capital, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The fund achieved an approximate 11% net return in the second quarter, indicating progress from the first quarter. Key changes to the portfolio will include lower concentration and increased investments with near-term catalysts, alongside a proactive stance on profit-taking. The focus will remain on owning strong businesses and conducting research that challenges consensus views, as several major investments are poised for significant events within the year. Despite declines in market multiples, underlying businesses continue to grow, suggesting a favorable positioning for returns. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its Q2 2026 investor letter, Greenhaven Road Capital highlighted Hagerty, Inc. (NYSE:HGTY). Hagerty, Inc. (NYSE:HGTY) is a US-based company that provides insurance services for collector cars and enthusiast vehicles. On August 17, 2026, Hagerty, Inc. (NYSE:HGTY) closed at $12.86 per share, reflecting a market capitalization of $4.42 billion. Hagerty, Inc. (NYSE:HGTY) posted a one‑month return of 9.73%, while its shares gained 17.55% over the past 52 weeks.

Greenhaven Road Capital stated the following regarding Hagerty, Inc. (NYSE:HGTY) in its Q2 2026 investor letter:

Hagerty is another "swift and strong" company in which we are invested. Their primary product, insurance for classic and collectible cars, benefits from a statutory requirement: owners need insurance to drive their cars. Hagerty offers a product customers love. It has data advantages that improve pricing, scale advantages that improve service, and distribution partnerships that allow it to acquire customers at a fraction of the industry's cost.

Over the past six years, Hagerty has demonstrated exceptional operating leverage, growing revenue faster than salaries and benefits and general and administrative expenses.

This operating leverage was achieved while Hagerty invested in their State Farm partnership and upgraded their technology platform—two efforts that increased expenses without producing near-term revenue. Even while investing in the business, EBITDA grew eightfold, from just under $30M to $237M annually...." (Click here to read the full text)

Hagerty, Inc. (NYSE:HGTY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 15 hedge fund portfolios held Hagerty, Inc. (NYSE:HGTY) at the end of the first quarter, compared to 17 in the previous quarter. While we acknowledge the potential of Hagerty, Inc. (NYSE:HGTY) 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.

In addition, please check out our hedge fund investor letters Q2 2026 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.