Arch Capital Group Ltd. (ACGL) Rose on Solid Premium Growth

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund (Class I) decreased 4.15% compared to the 3.40% decrease for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks such as Arch Capital Group Ltd. (NASDAQ:ACGL). Arch Capital Group Ltd. (NASDAQ:ACGL) offers insurance, reinsurance, and mortgage insurance products. The one-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was -3.11%, and its shares lost 0.26% of their value over the last 52 weeks. On April 22, 2025, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $92.95 per share with a market capitalization of $34.923 billion.

Madison Mid Cap Fund stated the following regarding Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q1 2025 investor letter:

“The top five contributors for the quarter were Brown & Brown, W.R. Berkley, Arch Capital Group Ltd. (NASDAQ:ACGL), Liberty Broadband, and Teledyne Technologies. Given negative market returns during the quarter, it is no surprise to see three insurance companies top our list of contributors. Industry fundamentals remain sound, but investors no doubt also found favor with their defensive demand profiles and limited tariff exposure. Premium growth at both Arch Capital and W.R. Berkley has slowed from the high levels of the last couple of years, but remains solid. Both insurers also benefited from better-than-expected reserve development, bucking industry trends.”

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. Our database shows that 41 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of the fourth quarter, compared to 33 in the third 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 covered Arch Capital Group Ltd. (NASDAQ:ACGL) and shared Baron Asset Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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.