5 Best Stocks to Buy According to Billionaire Brian Higgins

3. Arch Capital Group Ltd. (NASDAQ: ACGL)

Higgins’ Stake Value: $47,579,000
Percentage of Brian Higgins’ 13F Portfolio: 3.55%
Number of Hedge Fund Holders: 34

Arch Capital Group Ltd. (NASDAQ: ACGL), with its subsidiaries, imparts insurance, additional coverage, and lease insurance products globally. The company was founded in 1995 and is ranked third on our list of 10 best stocks to buy according to billionaire Brian Higgins. Arch Capital stock has offered investors 35.29% in the past 12 months.

On April 27, Arch Capital Group Ltd. (NASDAQ: ACGL) announced its first quarter 2021 revenue of $2.5 billion, beating the estimates by $230 million. The company also declared its earnings per share of $0.59, beating the market predictions by $0.15. On January 19, Matthew Carletti, an analyst at JMP Securities, initiated a coverage on Arch Capital. He rated the stock as “Market Outperform” and set a price target at $43.00. On March 18, Arch Capital Group entered into a share purchase agreement with the Westpac Group to obtain Westpac Lenders Mortgage Insurance Limited. As a part of the agreement, Westpac Lenders Mortgage Insurance Limited will become Westpac’s provider of new loan originations for a period of 10 years.

King Street Capital holds 1.24 million shares in the firm worth $47.58 million, representing 3.55% of their investment portfolio. King Street Capital has increased their Arch Capital stake by 40% in the first quarter of 2021. In the first quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $1.67 billion in Arch Capital Group Ltd. (NASDAQ: ACGL), same as the preceding quarter worth $1.46 billion.

In its first quarter 2021 investor letter, Baron Partners Fund, an asset management firm, highlighted a few stocks, and Arch Capital Group Ltd. was one of them. Here is what the fund said:

“Arch Capital Group Ltd. is a specialty insurance company based in Bermuda. The stock increased on quarterly earnings that exceeded investor estimates and 15% growth in its book value per share. Pricing trends are favorable in the property & casualty insurance market, and the outlook for the mortgage insurance business has substantially improved as the economy recovers from last year’s pandemic-related uncertainty. We continue to own the stock because we expect earnings growth to resume and admire Arch’s strong management team and underwriting discipline.”