Hagerty’s (HGTY) Higher Growth Story Remains Mispriced?

Greenhaven Road Capital, an investment management firm, recently published its second-quarter 2026 investor letter, highlighting Hagerty, Inc. (NYSE:HGTY) as a promising addition to their portfolio. The letter, available for download, details the fund's strategy and performance. In the quarter, Greenhaven Road Capital reported an approximate 11% net return, showing improvement from the previous period.

The fund's approach involves reducing portfolio concentration, investing in assets with near-term catalysts, and taking profits proactively. However, the letter also notes Hagerty's stock might be "overpriced" due to recent declines in market multiples. Despite this, the letter emphasizes Hagerty's strength, backed by its insurance services for classic and collector cars.

Hagerty's unique product benefits from legal requirements for owners to insure their vehicles, and the company's innovative use of data and scale offers pricing and service advantages. Furthermore, Hagerty's distribution partnerships allow it to acquire customers more cost-effectively than its competitors. The company's operating leverage is evident in its ability to grow revenue faster than its expenses, resulting in a remarkable eightfold increase in EBITDA over six years.

The letter suggests that Hagerty's growth trajectory, despite market conditions, positions it favorably for returns in 2026.