Is RLI Corp (RLI) a Good Investment Choice?

5 days ago 8

Soumya Eswaran

Tue, November 25, 2025 astatine 6:03 AM CST 3 min read

Investment absorption company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. In the 3rd quarter, the money returned 7.46% compared to a 12.60% instrumentality for the Russell 2000 Value Index. In the archetypal 3 quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the firm’s absorption is connected a diligent, disciplined, and diligent process, it expects the money to outperform successful down markets and way successful speculative markets. Additionally, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its third-quarter 2025 capitalist letter, the FPA Queens Road Small Cap Value Fund highlighted stocks specified arsenic RLI Corp. (NYSE:RLI). RLI Corp. (NYSE:RLI) is an security holding company. The one-month instrumentality of RLI Corp. (NYSE:RLI) was 7.17%, and its shares mislaid 29.74% of their worth implicit the past 52 weeks. On November 24, 2025, RLI Corp. (NYSE:RLI) banal closed astatine $63.55 per share, with a marketplace capitalization of $5.836 billion.

FPA Queens Road Small Cap Value Fund stated the pursuing regarding RLI Corp. (NYSE:RLI) successful its 3rd 4th 2025 capitalist letter:

"RLI Corp. (NYSE:RLI) arsenic of the extremity is simply a specialty spot and casualty insurer. The institution is highly selective successful penning business. Its diversified lines see niche-y areas specified arsenic nationalist and schoolhouse busses, Hawaii homeowners unsocial culture, inducement structures and willingness to locomotion distant from unprofitable concern have, and surety. RLI’s historically to exceptional fiscal performance. From 2015 done 2024, the company’s combined ratio has averaged led 89.3% and its ROE has averaged 16.6% contempt being weighed down by excess capital. We person owned RLI since 2011 and the banal usually commands a premium valuation – astir 20x this year’s earnings."

A Closer Look astatine RLI Corp (RLI), a Quiet Dividend Grower

RLI Corp. (NYSE:RLI) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge money portfolios held RLI Corp. (NYSE:RLI) astatine the extremity of the 2nd quarter, compared to 32 successful the erstwhile quarter. While we admit the imaginable of RLI Corp. (NYSE:RLI) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

In another article, we covered RLI Corp. (NYSE:RLI) and shared LRT Global Opportunities Strategy's views connected the company. In addition, delight cheque retired our hedge money capitalist letters Q3 2025 page for much capitalist letters from hedge funds and different starring investors.