Moody Aldrich Liquidates Entire Stake in PLMR Worth $8.2 Million

Moody Aldrich Partners LLC fully exited its position in Palomar Holdings(NASDAQ:PLMR), selling 53,211 shares for an estimated $8.21 million, according to an SEC filing on October 21, 2025.

What happened

Moody Aldrich Partners LLC reported in a Securities and Exchange Commission (SEC) filing dated October 21, 2025, that it sold its entire holding of Palomar Holdings during the third quarter. The transaction involved 53,211 shares and was estimated at $8.21 million using the average price for the period. The fund no longer holds any shares of Palomar Holdings following the sale.

What else to know

The fund fully exited Palomar Holdings; the position now represents zero percent of its 13F AUM.

Top holdings after the filing:

• CADE: $10.9 million (2.1% of AUM)
• INDB: $10.5 million (2% of AUM)
• PTGX: $9.5 million (1.8% of AUM)
• KTOS: $9.5 million (1.8% of AUM)
• PIPR: $8.4 million (1.6% of AUM)

As of October 21, 2025, Palomar Holdings shares were priced at $115.34, up 9.2% YTD, underperforming the S&P 500 by 5.5 percentage points.

Company Overview

Company Snapshot

• Offers specialty property insurance products, including earthquake, hurricane, flood, inland marine, and commercial all-risk coverage, as well as assumed reinsurance and real estate-related products.
• Generates revenue primarily through underwriting specialty insurance policies and collecting premiums, complemented by risk transfer and reinsurance arrangements.
• Serves residential and commercial customers, distributing products through retail agents, wholesale brokers, program administrators, and carrier partnerships.
• Palomar Holdings, Inc. is a specialty property insurer with diversified offerings and a focus on catastrophe-exposed markets.

Foolish take

Moody Aldrich Partners just sold its entire $8.2 million stake in Palomar Holdings, completely exiting the specialty insurer after a decent but not spectacular year in 2025. With the stock up about 9% year-to-date through late October—a gain that trails the S&P 500’s broader rally—this move is probably just portfolio rebalancing, not a sign that it's lost faith in the company's future.

Palomar has carved out a unique spot for itself in the insurance world by focusing on property that's exposed to catastrophes, like earthquakes, hurricanes, and other high-risk areas that most traditional insurers steer clear of. While this specialization can lead to great profits in quiet years, it also means the company is more exposed to volatility linked to natural disasters and the cost of reinsurance.

For investors, Palomar is still an interesting blend of risk and reward: its smart underwriting and growth in niche markets are balanced against its exposure to unpredictable weather events. Moody Aldrich’s decision to leave is likely a short-term tactical play—it doesn't necessarily mean it's judging the company's long-term strength or ability to make money.

Glossary

13F reportable assets under management (AUM): The total value of securities a fund must report quarterly to the SEC on Form 13F.
Alpha: A measure of an investment's performance relative to a benchmark, showing excess return above the benchmark's return.
Assumed reinsurance: When an insurer accepts risk from another insurance company in exchange for a premium.
Catastrophe-exposed markets: Insurance markets focused on areas with a high risk of natural disasters like earthquakes or hurricanes.
Program administrators: Firms or individuals managing insurance programs on behalf of insurers, often handling underwriting and distribution.
Risk transfer: Shifting financial risk from one party to another, commonly through insurance or reinsurance contracts.
Wholesale brokers: Intermediaries who sell insurance products to retail agents rather than directly to consumers.
Underwriting: The process insurers use to evaluate risk and decide terms and pricing for insurance policies.
TTM: The 12-month period ending with the most recent quarterly report.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Palomar. The Motley Fool recommends Protagonist Therapeutics. The Motley Fool has a disclosure policy.