Is HCI Stock a Buy After One Hedge Fund Upped Its Stake by $9 Million?

What happened

According to an SEC filing dated November 14, 2025, Alden Global Capital LLC increased its holdings in HCI Group (NYSE:HCI) by 42,840 shares during the third quarter. The fund’s position grew to 62,940 shares, with a reported market value of $12.08 million as of September 30, 2025. The move came amid normal trading activity for the fund, which reported 13 total equity positions at quarter-end.

What else to know

Alden Global Capital LLC bought additional HCI shares, raising the position to 7.06% of its 13F reportable AUM after the quarter's trades.

Top holdings after the filing:

• NYSE: C: $30,601,946 (17.89% of AUM)
• NASDAQ: NVDA: $28,306,612 (16.55% of AUM)
• NYSE: ET: $23,517,969 (13.75% of AUM)
• NYSE: DELL: $17,050,678 (10.00% of AUM)
• NASDAQ: EXE: $14,672,488 (8.58% of AUM)

As of November 14, 2025, shares were priced at $179.99, up 58.51% over the prior year with a 49.56 percentage point alpha versus the S&P 500.

Company Overview

Company Snapshot

• HCI Group offers residential property and casualty insurance, reinsurance, and develops technology platforms for insurance administration and claims management.
• It generates revenue primarily from insurance premiums, reinsurance activities, and real estate investments, complemented by technology services.
• The company serves homeowners, condominium owners, and tenants in Florida, focusing on residential property insurance and related markets.

HCI Group, Inc. is a diversified financial services company with a core focus on property and casualty insurance in Florida, supported by reinsurance, real estate, and proprietary technology solutions.

Foolish take

Alden Global Capital adding to its HCI stake is noteworthy, suggesting the investment firm has a bullish outlook on the stock. This is further underscored by the fact Alden Global Capital only holds 13 stocks, and HCI represents the sixth largest holding after the purchase in the third quarter.

HCI shares are up this year, reaching a 52-week high of $210.50 in October. The company is having a banner year. For the first three quarters of 2025, pre-tax income totaled $285.3 million compared to $167.5 million in 2024. Moreover, net income hit $212.4 million in that time, an increase over the prior year's $123.4 million.

Given the strong revenue growth and rising profits, HCI looks like a solid company to invest in, explaining why Alden Global Capital increased its stake. In addition, HCI stock's price-to-earnings ratio of 11 hovers around a low point in 2025, indicating shares are still a good value, making now a good time to invest for the long haul.

Glossary

13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing certain equity holdings.
AUM (Assets Under Management): The total market value of assets a fund or investment manager oversees on behalf of clients.
Alpha: A measure of an investment's performance compared to a benchmark, indicating outperformance or underperformance.
Reinsurance: Insurance purchased by insurance companies to reduce risk by sharing potential losses with other insurers.
Stake: The amount of ownership or investment a fund or individual holds in a particular company.
Property and casualty insurance: Insurance covering property loss (like homes) and liability for accidents or injuries.
Quarter-end: The last day of a fiscal quarter, often used as a reporting cutoff for financial statements.
TTM: The 12-month period ending with the most recent quarterly report.

Citigroup is an advertising partner of Motley Fool Money. Robert Izquierdo has positions in Dell Technologies and Nvidia. The Motley Fool has positions in and recommends HCI Group and Nvidia. The Motley Fool has a disclosure policy.