5 Stocks to Buy for Interest Rate Hikes

3. Chubb Limited (NYSE:CB)

Number of Hedge Fund Holders: 35

Chubb Limited (NYSE:CB) is a Swiss company that provides insurance and reinsurance products worldwide. On August 11, Chubb Limited (NYSE:CB) declared a quarterly dividend of $0.83 per share, in line with previous. The dividend is payable on October 7, to shareholders of record as of September 16. The company has consistently increased its annual dividend payout for 29 years and is a member of the S&P 500 dividend aristocrats. 

On July 12, Jefferies analyst Yaron Kinar reiterated a Buy recommendation on Chubb Limited (NYSE:CB) but lowered the price target on the shares to $244 from $247. His P&C insurance and insurtech estimates for the quarter “skew below Street” to factor in modest Russia-related losses and below average alternative investment returns. However, his primary underlying EPS forecast is ahead of the Street consensus for the group, the analyst told investors. 

According to Insider Monkey’s second quarter data, 35 hedge funds were long Chubb Limited (NYSE:CB), up from 31 funds in the earlier quarter. Andreas Halvorsen’s Viking Global is the largest position holder in the company, with 3.7 million shares worth about $742 million.

In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Chubb Limited (NYSE:CB) was one of them. Here is what the fund said:

“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”