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Will Arch Capital Group Ltd. (ACGL) Continue to Grow at Attractive Rates?

Soumya Eswaran
·3-min read

Baron Funds, an investment management company, released its “Baron Asset Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets continued its strong rally in the first quarter. Robust economic data and relatively strong corporate earnings boosted the rally along with the anticipation of a soft landing of the market. The fund (Institutional Shares) appreciated 6.00% in the quarter compared to 9.50% for the Russell Midcap Growth Index and 10.56% for the S&P 500 Index. Stock selection and headwinds from the Fund’s longtime style biases led the fund to underperform in the first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron Asset Fund featured stocks like Arch Capital Group Ltd. (NASDAQ:ACGL) in the Q1 2024 investor letter. Headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. (NASDAQ:ACGL) offers insurance, reinsurance, and mortgage insurance products. On May 13, 2024, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $97.91 per share. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was 7.76%, and its shares gained 31.39% of their value over the last 52 weeks. Arch Capital Group Ltd. (NASDAQ:ACGL) has a market capitalization of $36.765 billion.

Baron Asset Fund stated the following regarding Arch Capital Group Ltd. (NASDAQ:ACGL) in its first quarter 2024 investor letter:

"Specialty insurer Arch Capital Group Ltd. (NASDAQ:ACGL) contributed to performance after reporting strong financial results that exceeded Wall Street expectations. In the most recent reported quarter, operating ROE was 24% and book value per share rose 44% as underwriting profitability remained excellent. Pricing trends in the property and casualty insurance market are favorable, and elevated interest rates are driving higher investment income. Insurance stocks broadly rebounded from weakness in the prior quarter as interest rates stabilized. We believe Arch’s exceptional management team will continue to grow earnings and book value at attractive rates."

A close-up image of an insurance policy with hands standing firmly on top, conveying security.

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Arch Capital Group Ltd. (NASDAQ:ACGL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Arch Capital Group Ltd. (NASDAQ:ACGL) was held by 40 hedge fund portfolios, compared to 25 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

Arch Capital Group Ltd. (NASDAQ:ACGL) benefited from the favorable market conditions in the first quarter and one of is the leading contributor of Madison Investments, an investment advisor. Additionally, Arch Capital Group Ltd. (NASDAQ:ACGL) is listed among the hot stocks to invest in according to Wall Street analysts.

 

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Disclosure: None. This article is originally published at Insider Monkey.