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Latest news with #KingswayFinancialServicesInc

Kingsway Financial Services (KFS) Targets Aggressive Growth Through Strategic Acquisitions
Kingsway Financial Services (KFS) Targets Aggressive Growth Through Strategic Acquisitions

Yahoo

time11-07-2025

  • Business
  • Yahoo

Kingsway Financial Services (KFS) Targets Aggressive Growth Through Strategic Acquisitions

Alphyn Capital Management, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 12.4% net in the second quarter compared to 10.9% for the S&P 500 Index. As of the second quarter of 2025, the top ten holdings accounted for approximately 65% of the portfolio, and approximately 17% of the portfolio was held in cash. Market conditions remained volatile in Q2 due to ongoing tariff developments and evolving interest rate projections. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Alphyn Capital Management 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 6.91%, and its shares gained 73.72% of their value over the last 52 weeks. On July 10, 2025, Kingsway Financial Services Inc. (NYSE:KFS) stock closed at $14.54 per share, with a market capitalization of $413.374 million. Alphyn Capital Management stated the following regarding Kingsway Financial Services Inc. (NYSE:KFS) in its second quarter 2025 investor letter: "Kingsway Financial Services Inc.'s (NYSE:KFS) shares spent most of the past year moving sideways, which is unsurprising for a roughly $400 million market cap company that receives little sell-side coverage and whose value depends more on future acquisition-driven growth than on reported earnings today. Execution across the portfolio has been uneven. Acquisitions such as Ravix and SPI have performed well, while CSuite has proven difficult, and Secure Nursing has faced soft demand for travel nurses and wage pressure, resulting in revenue remaining flat and margins under strain as the industry normalizes following the pandemic. At the May Investor Day, management reaffirmed its goal of two to three acquisitions a year at 5-7x EBITDA on companies earning $1.5 - $3 million and walked through an operating playbook for their most recent acquisition Buds Plumbing that showed how pricing, service mix expansion, and bolt-on M&A can double profits within three years. Two weeks later, Kingsway closed a $15.7 million PIPE at $11.75 per share, lifting its acquisition cadence target to three to five deals per year. The share price has run up on that news and could be volatile until the playbook is proven; but if management executes on a handful of high quality acquisitions a year and brings solid operational discipline to formerly lifestyle family businesses, the earnings base could expand meaningfully over the next few years." A service technician with a tool belt, inspecting an HVAC unit in a customer's home. Kingsway Financial Services Inc. (NYSE:KFS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Kingsway Financial Services Inc. (NYSE:KFS) at the end of the first quarter, compared to 5 in the last quarter. While we acknowledge the potential of 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. In another article, we covered Kingsway Financial Services Inc. (NYSE:KFS) and shared Greenhaven Road Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.

Kingsway Financial Services Inc. (KFS): A Bull Case Theory
Kingsway Financial Services Inc. (KFS): A Bull Case Theory

Yahoo

time06-06-2025

  • Business
  • Yahoo

Kingsway Financial Services Inc. (KFS): A Bull Case Theory

We came across a bullish thesis on Kingsway Financial Services Inc. (KFS) on Andvsri's Substack. In this article, we will summarize the bulls' thesis on KFS. Kingsway Financial Services Inc. (KFS)'s share was trading at $12.86 as of 30th May. A professional insurance agent at work in a modern office, representing the company's independent agents. Kingsway Financial Services (KFS) has undergone a significant transformation from a troubled Canadian insurance company into a unique, publicly traded search fund platform. After years of poor management and failed investments, activist investor Joseph Stilwell took control and installed Larry Swets as CEO to utilize the company's substantial net operating losses (NOLs). However, Swets' tenure saw limited success until the 2016 acquisition of Argo Management Group and its founder, J.T. Fitzgerald. In 2018, Fitzgerald became CEO and began a comprehensive cleanup, exiting legacy assets, selling the insurance business, reincorporating in the U.S., and dramatically reducing debt. Under Fitzgerald, Kingsway launched the Kingsway Search Accelerator (KSX) to institutionalize the search fund model. Search funds—vehicles where entrepreneurs acquire and operate small businesses—have historically generated strong returns, and Kingsway's platform improves on the model with superior capital access, operational infrastructure, and a selective pipeline. Notably, the company's PWSC exit yielded a 10x return, and current portfolio companies are demonstrating strong performance. Recent catalysts include the addition of respected investors David Patinkin and Josh Horowitz to the board, strategic leadership changes in the warranty segment, and the acquisition of Bud's Plumbing, led by Rob Casper, a seasoned aggregator CEO. These moves suggest a path toward becoming a self-funded, pure-play search fund company, potentially unlocking greater valuation multiples. With substantial NOLs expiring by 2029, the urgency to monetize or streamline operations further supports the bullish outlook. Recent share price appreciation reflects growing investor recognition of Kingsway's evolving business model and strategic potential. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Copart, Inc. (CPRT). Kingsway Financial Services Inc. (KFS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held KFS at the end of the first quarter which was 5 in the previous quarter. While we acknowledge the potential of KFS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Greenhaven Road Capital's New Addition: Kingsway Financial (KFS)
Greenhaven Road Capital's New Addition: Kingsway Financial (KFS)

Yahoo

time22-05-2025

  • Business
  • Yahoo

Greenhaven Road Capital's New Addition: Kingsway Financial (KFS)

Greenhaven Road Capital, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned around -12% net of fees and expenses, trailing the Russell 2000 by approximately 2% in large part. The Q1 letter focused on President Trump's Liberation Day and the attendant tariff policies rather than company fundamentals. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-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 34.20%, and its shares gained 44.27% of their value over the last 52 weeks. On May 21, 2025, Kingsway Financial Services Inc. (NYSE:KFS) stock closed at $11.34 per share with a market capitalization of $307.244 million. Greenhaven Road Capital stated the following regarding Kingsway Financial Services Inc. (NYSE:KFS) in its Q1 2025 investor letter: "Kingsway Financial Services Inc. (NYSE:KFS) is invisible to most financial market participants. With a market capitalization of $225M, it is too small for many to invest in. The company has no sell side coverage, thus there are no 'consensus numbers.' In FactSet and other financial databases, the company is misclassified as a 'multi-line insurer'. To further compound the analytical challenge, GAAP accounting rules have the reported numbers understating the company's earning power. If I wanted to camouflage a company, the levers I would pull are all present here: small, no sell-side, mislabeled, and distorted GAAP financials. A service technician with a tool belt, inspecting an HVAC unit in a customer's home. Kingsway Financial Services Inc. (NYSE:KFS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Kingsway Financial Services Inc. (NYSE:KFS) at the end of the fourth quarter, compared to 3 in the third quarter. While we acknowledge the potential of Kingsway Financial Services Inc. (NYSE:KFS) 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 undervalued AI stock set for massive gains. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.

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