Why Rigatoni Capital is Staying Put on Investing Around Hurricane Milton:

At Rigatoni Capital, we are committed to long-term investing and not trading around short-term market moves, even when natural disasters like Hurricane Milton push certain stocks higher. For example, Generac Holdings ($GNRC) recently surged as the hurricane approached Florida, and while it flashed some bullish signals, that’s not where our focus lies.

We are long-term investors, not traders. Instead of jumping on short-term plays, we’re more interested in quality property and casualty insurance companies, to buy and hold for decades. Names like Chubb ($CB), Travelers ($TRV), Brown & Brown ($BRO), and W.R. Berkley ($WRB) are the types of stocks we’ve been patiently waiting to buy at the right price. While hurricanes can create buying opportunities, right now, insurance stocks are hovering near their all-time highs, and a 3-5% pullback is not flashing a strong buy signal.

Historically, we’ve seen excellent buying opportunities for companies like Chubb in September 2015, October 2018, and September 2022, following similar natural disasters. These moments align with our long-term strategy of waiting for cyclicality in the insurance sector during hurricane season. However, we don’t feel the current market environment presents enough of a dip to act.

While the media is currently highlighting stocks like Generac, which surged as Hurricane Milton grew into a Category 5 storm, we remain focused on patient, long-term investments in mid to large-cap insurance names, not short-term trades on Hurricane hype.

And most importantly, if anyone is in this section of Florida, please be safe. God bless what you’re having to deal with right now.