Here’s Why You Should Consider Investing in Arch Capital Group (ACGL)

Baron Funds, an asset management firm, published its “Baron Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of 6.56% was delivered by the fund’s institutional shares for the fourth quarter of 2021 and 15.84% for the year. This exceeded the Fund’s primary benchmark, the Russell 2000 Growth Index (the “Benchmark”), which gained 0.01%. The S&P 500 Index, which measures the performance of publicly-traded large-cap U.S. companies, gained 11.03% during the period. For the full year, the Fund gained 20.15%, meaningfully exceeding its Benchmark, which gained 2.83%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Growth Fund, in its Q4 2021 investor letter, mentioned Arch Capital Group Ltd. (NASDAQ: ACGL) and discussed its stance on the firm. Arch Capital Group Ltd. is a Hamilton, Bermuda-based insurance company with a $17.6 billion market capitalization. ACGL delivered a 4.75% return since the beginning of the year, while its 12-month returns are up by 32.46%. The stock closed at $46.56 per share on February 11, 2022.

Here is what Baron Growth Fund has to say about Arch Capital Group Ltd. in its Q4 2021 investor letter:

“We have seen our businesses exercise their pricing power more aggressively in recent months. Insurer Arch Capital Group Ltd. will benefit from global property catastrophe pricing that rose by approximately 10% during its most recent renewal season, and casualty pricing that rose by around 5%.”

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Our calculations show that Arch Capital Group Ltd. (NASDAQ: ACGL) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ACGL was in 31 hedge fund portfolios at the end of the third quarter of 2021, compared to 22 funds in the previous quarter. Arch Capital Group Ltd. (NASDAQ: ACGL) delivered a 10.80% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on ACGL in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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