Arch Capital Group (ACGL) Cooled Down in Q4

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund (Class Y) decreased 1.86% compared to the 0.62% increase for the Russell Midcap Index. The Fund returned 10.46% in the full year 2024 period, compared to 15.34% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Madison Mid Cap Fund highlighted stocks like Arch Capital Group Ltd. (NASDAQ:ACGL), in the fourth quarter 2024 investor letter. Arch Capital Group Ltd. (NASDAQ:ACGL) offers insurance, reinsurance, and mortgage insurance products. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was 2.67% and its shares gained 14.29% of their value over the last 52 weeks. On January 29, 2024, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $93.82 per share with a market capitalization of $35.299 billion.

Madison Mid Cap Fund stated the following regarding Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q4 2024 investor letter:

“The bottom five detractors for the quarter were Arch Capital Group Ltd. (NASDAQ:ACGL), Carlisle Companies, CDW, Floor & Decor Holdings, and Brown-Forman. Following a long period of outperformance, shares in Arch Capital lagged in the fourth quarter. While underwriting results and premium growth continue to be excellent, the industry may be entering the later innings of the hard cycle that began three years ago. We’ve anticipated this and believe Arch is flexing its business prudently to manage through the cycle.”

Is Arch Capital Group Ltd. (ACGL) the Best Insurance Stock for the Long Term?

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

Arch Capital Group Ltd. (NASDAQ:ACGL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of the third quarter which was 37 in the previous quarter. While we acknowledge the potential of Arch Capital Group Ltd. (NASDAQ:ACGL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Arch Capital Group Ltd. (NASDAQ:ACGL) and shared the list of best insurance stocks for the long term. FMI International Equity Strategy sold its stake in Arch Capital Group Ltd. (NASDAQ:ACGL) during Q4 2024. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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