Should Investors Buy Hagerty (NYSE: HGTY) As Garner Asset Management Opens a $3 Million Position in the Stock?
Key Points
Garner Asset Management acquired 281,825 shares, increasing U.S. equity exposure by an estimated $3.39 million.
The transaction represents 1.37% of 13F reportable assets under management.
Garner's post-trade stake totals 281,825 shares, worth $3.39 million as of September 30, 2025.
The new position places Hagerty outside the fund's top five holdings by value
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Garner Asset Management Corp disclosed a new position in Hagerty (NYSE:HGTY), acquiring 281,825 shares valued at approximately $3.39 million, according to its November 10, 2025, SEC filing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated November 10, 2025, Garner Asset Management initiated a new stake in Hagerty during the third quarter.
The fund reported ownership of 281,825 shares, valued at $3.39 million at quarter-end.
This move added Hagerty to Garner's U.S. equity portfolio, which totaled $248.17 million across 155 positions as of September 30, 2025.
What else to know
This new position represents 1.37% of Garner's reportable assets under management as of September 30, 2025, placing it outside the fund's top five holdings.
Top holdings after the filing:
- Invesco QQQ Trust, Series I (NASDAQ:QQQ): $15.87 million (6.4% of AUM)
- Berkshire Hathaway Class B (NYSE:BRK.B): $11.52 million (4.6% of AUM)
- Vanguard Total Stock Market Index ETF (NYSEMKT:VTI): $9.60 million (3.9% of AUM)
- Nvidia (NASDAQ:NVDA): $9.35 million (3.8% of AUM)
- Apple (NASDAQ:AAPL): $9.28 million (3.7% of AUM)
As of November 7, 2025, Hagerty shares were priced at $12.43, up 9% over the past year.
Hagerty's five-year revenue compound annual growth rate stands at 25%.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 2025-11-07) | $12.43 |
| Market capitalization | $4.25 billion |
| Revenue (TTM) | $1.36 billion |
| Net income (TTM) | $43.30 million |
Company Snapshot
Hagerty:
- Provides specialty insurance products for automobiles and boats, as well as ancillary services including media, events, valuation tools, and enthusiast memberships.
- Generates revenue primarily through insurance premiums, reinsurance products, subscription-based services, and event management fees.
- Targets automotive and boating enthusiasts, collectors, and motorsport participants seeking tailored insurance, valuation, and lifestyle services.
Hagerty operates at scale as a leading provider of specialty insurance and automotive enthusiast services, with a diversified product suite and a market capitalization of $4.25 billion.
The company leverages its integrated business model -- combining insurance, media, events, and proprietary data tools -- to deepen customer engagement and drive recurring revenue streams.
Hagerty's focus on the collector and enthusiast segment, supported by digital platforms and community offerings, underpins its competitive positioning within the property and casualty insurance industry.
Foolish take
Garner Asset Management has opened, closed, and reopened a position in Hagerty over the last three quarters.
While it is hard to decipher exactly what Garner is up to without access to their inner workings, the new position immediately becomes the 21st-largest holding for the firm among its 155 stocks.
From a Foolish perspective, I would be a long-term holding of Hagerty's stock, as it is a watchlist business for me that I have been following for the past couple of years.
The company has become a global leader of insurance for classic and enthusiast vehicles. This market is a highly specialized and premium niche, which lets Hagerty typically command strong pricing power.
Said another way, it sells must-have insurance to often wealthy customers, making it somewhat similar to a luxury stock. The company also has partnerships in place with State Farm and Markel (NYSE:MKL) to help scale its insurance lines.
In addition to insurance, Hagerty offers a membership program and car marketplace for its customers, helping to maintain an incredible Net Promoter Score of +83.
There's a lot to like about Hagerty, but it trades at 36 times forward earnings, so I'd argue it needs to be bought and held for years to pay off.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their equity holdings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Stake: The amount of ownership or shares held by an investor or fund in a particular company.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Compound annual growth rate (CAGR): The annualized rate of return for an investment over a specified period, assuming profits are reinvested.
Reinsurance: Insurance purchased by an insurance company from another insurer to reduce risk exposure.
Subscription-based services: Business model where customers pay recurring fees for continued access to a product or service.
Ancillary services: Additional services offered alongside a company's main products, often to enhance customer value or experience.
Equity exposure: The proportion of a portfolio invested in stocks or stock-related assets.
Integrated business model: A strategy where a company combines multiple related business activities to create synergies and a competitive advantage.
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