SCHEDULE: Donald Smith & Co. Reports 4.1% Stake in Universal Insurance

Donald Smith & Co., Inc. and DSCO Value Fund, L.P. have reported a combined beneficial ownership of 4.1% of Universal Insurance Holdings, Inc. common stock.

Summary

• Donald Smith & Co., Inc. and DSCO Value Fund, L.P. are the reporting persons in this Schedule 13G filing.
• They collectively beneficially own 1,149,374 shares of Universal Insurance Holdings, Inc. common stock.
• This ownership represents 4.1% of the total class of securities.
• Donald Smith & Co., Inc. holds sole voting power over 1,075,252 shares and sole dispositive power over 1,138,692 shares.
• DSCO Value Fund, L.P. holds sole voting power over 10,682 shares and sole dispositive power over 10,682 shares.
• The filing indicates a passive investment intent, as it is a Schedule 13G filed under Rule 13d-1(b).

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive signal, as a respected investment firm has taken a significant passive stake, suggesting a belief in the company's long-term value without indicating an intent to influence control.

Positives

• A significant institutional investor, Donald Smith & Co., Inc., holds a substantial passive stake, potentially signaling confidence in Universal Insurance Holdings, Inc.'s long-term value.

Industry Context

StockSavvy.ai notes that institutional filings like this provide transparency into significant ownership changes, which can influence market perception, especially in the insurance sector where stability and institutional backing are valued. The passive nature of a 13G suggests a long-term investment horizon without intent to influence management.

Stakeholder Impact

• Shareholders: Increased transparency regarding institutional ownership; potential positive sentiment from a notable investor's stake.

Key Dates

Recommendation

Donald Smith & Co.'s passive 4.1% stake in Universal Insurance Holdings, Inc. suggests a long-term value perspective from a respected institutional investor. While not an active investment, it provides a level of institutional confidence that supports a 'hold' recommendation for existing investors, indicating the stock is likely considered a stable, long-term asset by this firm.

Keywords

Universal Insurance Holdings, Donald Smith & Co., DSCO Value Fund, Schedule 13G, institutional ownership, common stock, insurance, investment adviser