On December 31, 2024, Chuck Royce (Trades, Portfolio), a renowned figure in small-cap investing, made a strategic decision to reduce the firm's holdings in International General Insurance Holdings Ltd (IGIC, Financial). The transaction involved a reduction of 670,772 shares, executed at a trade price of $23.76 per share. This move resulted in a -0.14% impact on the firm's portfolio, leaving a remaining 2,394,020 shares in IGIC, which now constitutes 0.52% of the total portfolio. This adjustment reflects a calculated approach in managing the firm's investments, aligning with its philosophy of focusing on smaller companies with strong balance sheets and potential for future profitability.

Chuck Royce (Trades, Portfolio): A Pioneer in Small-Cap Investing

Chuck Royce (Trades, Portfolio) is widely recognized as a pioneer in small-cap investing, having managed the Royce Pennsylvania Mutual Fund since 1972. The firm holds a bachelor's degree from Brown University and an MBA from Columbia University. The investment philosophy centers on identifying smaller companies with market capitalizations up to $5 billion, seeking stocks trading below their estimated enterprise value. The firm emphasizes a strong balance sheet, a successful business record, and the potential for a profitable future. The firm's top holdings include SEI Investments Co (SEIC, Financial), Air Lease Corp (AL, Financial), Enovis Corp (ENOV, Financial), Kennedy-Wilson Holdings Inc (KW, Financial), and Arcosa Inc (ACA, Financial).

International General Insurance Holdings Ltd: A Specialist Insurer

International General Insurance Holdings Ltd, based in Jordan, is a specialist commercial insurer and reinsurer. The company operates across various segments, including Specialty Longtail, Specialty Short tail, and Reinsurance. With a market capitalization of $1.17 billion, IGIC underwrites a diverse portfolio covering Energy, Property, Construction, and more. The current stock price stands at $25.725, with a price-to-earnings ratio of 8.50. However, the stock is considered significantly overvalued, with a GF Value of $15.90, resulting in a Price to GF Value ratio of 1.62.

Financial Metrics and Valuation

IGIC's financial metrics reveal a [GF-Score](https://www.gurufocus.com/term/gf-score/IGIC) of 80/100, indicating likely average performance. The company has shown a year-to-date price change of 5.56%, with a 3-year revenue growth of 15.30% and a 3-year earnings growth of 55.20%. The [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/IGIC) is ranked 8/10, while the [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/IGIC) is 7/10. Despite its overvaluation, IGIC's [Growth Rank](https://www.gurufocus.com/term/rank-growth/IGIC) is strong at 9/10, though its [GF Value Rank](https://www.gurufocus.com/term/rank-gf-value/IGIC) and [Momentum Rank](https://www.gurufocus.com/term/rank-momentum/IGIC) are lower at 3/10.

Performance and Growth Indicators

IGIC has demonstrated robust growth indicators, with a 3-year earnings growth of 55.20% and a [Piotroski F-Score](https://www.gurufocus.com/term/fscore/IGIC) of 9, suggesting strong financial health. The company's [interest coverage](https://www.gurufocus.com/term/interest-coverage/IGIC) is notably high, indicating its ability to meet interest obligations. However, the [Altman Z score](https://www.gurufocus.com/term/zscore/IGIC) is not available, which may warrant further analysis for potential investors. The [Operating Margin](https://www.gurufocus.com/term/operating-margin/IGIC) growth remains stagnant, which could be a point of concern for future profitability.

Conclusion: Strategic Portfolio Adjustment

Chuck Royce (Trades, Portfolio)'s decision to reduce the firm's holdings in IGIC reflects a strategic adjustment in line with the firm's investment philosophy. Despite the reduction, IGIC remains a part of the portfolio, indicating continued interest in the company's potential. The transaction highlights the firm's commitment to maintaining a balanced portfolio while capitalizing on opportunities within the small-cap sector. As IGIC continues to operate in a specialized insurance market, its performance and valuation will be closely monitored by investors seeking to understand the implications of this strategic move.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.