Conestoga Capital Advisors released their Q3 2025 investor letter, noting the equity markets continued momentum with the Conestoga Micro-Cap Composite returning 11.7% net-of-fees. Top 5 holdings reflect their best picks for 2025. Palomar Holdings, Inc. (NASDAQ:PLMR) is highlighted, with a market cap of $3.089 billion, one-month return of -0.70%, and shares closing at $115.34 on October 21, 2025.

In the Q3 2025 investor letter, Conestoga Capital Advisors discussed Palomar Holdings, Inc. (NASDAQ:PLMR), noting its specialty P&C focus and underperformance due to investor caution. Despite solid underwriting and completed reinsurance programs, Q2 sentiment remained cautious, impacting share performance.

Palomar Holdings, Inc. (NASDAQ:PLMR) was held in 28 hedge fund portfolios at the end of Q2, up from 25 in the previous quarter. While acknowledging its potential, other AI stocks may offer greater upside potential with less downside risk. Consider exploring undervalued AI stocks for investment opportunities.

For more insights on Palomar Holdings, Inc. (NASDAQ:PLMR), check out Riverwater Partners Small Cap Strategy’s views in the previous quarter. Explore additional investor letters from hedge funds and leading investors for a comprehensive understanding of market trends and strategies in Q3 2025.

Read more at Yahoo Finance: Here’s What Pressured Palomar Holdings (PLMR) in Q3