Baron Funds, an investment management company, released its “Baron Discovery Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund (Institutional Shares) returned 22.58% outperforming the 18.66% return for the Russell 2000 Growth Index. In Q4, the fund returned 12.44% compared to a 12.75% return for the index. Since its inception, investors in the fund have earned an annualized return of 12.42%, resulting in a more than tripled investment. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Discovery Fund featured stocks such as Kinsale Capital Group, Inc. (NYSE:KNSL) in the fourth quarter 2023 investor letter. Headquartered in Richmond, Virginia, Kinsale Capital Group, Inc. (NYSE:KNSL) is a specialty insurance company. On February 6, 2024, Kinsale Capital Group, Inc. (NYSE:KNSL) stock closed at $401.39 per share. One-month return of Kinsale Capital Group, Inc. (NYSE:KNSL) was 7.98%, and its shares gained 34.24% of their value over the last 52 weeks. Kinsale Capital Group, Inc. (NYSE:KNSL) has a market capitalization of $9.302 billion.
Baron Discovery Fund stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its fourth quarter 2023 investor letter:
“Shares of specialty insurer Kinsale Capital Group, Inc. (NYSE:KNSL) gave back some gains from earlier this year after the company reported slower premium growth in the third quarter. Earnings beat Street expectations with EPS doubling and ROE exceeding 34%. However, investors focused on the slowdown in gross written premiums to 33% growth from 58% growth in the prior quarter, which management attributed to normal seasonality for property insurance. Additionally, we believe some of the share price weakness resulted from a market rotation away from defensive stocks to more speculative stocks following a decline in interest rates. We continue to own the stock because we believe Kinsale is well managed and has a long runway for growth in an attractive segment of the insurance market. We trimmed our position in Kinsale Capital Group, Inc. in an effort to risk manage the position size. That being said, we continue to like the company’s longer-term prospects and opportunities to take share in the excess and surplus lines insurance market.”
A Professional insurance broker discussing coverage plans with a small business owner.
Kinsale Capital Group, Inc. (NYSE:KNSL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Kinsale Capital Group, Inc. (NYSE:KNSL) at the end of third quarter which was 27 in the previous quarter.
We discussed Kinsale Capital Group, Inc. (NYSE:KNSL) in another article and shared Giverny Capital Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
