Baron Funds, an investment management company, released its “Baron Asset Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The market rally that was driven by technology this year came to a halt in the third quarter. Against this backdrop, the Baron Asset Fund declined 4.42% (Institutional Shares) in the third quarter outperforming the Russell Midcap Growth Index’s -5.22% return. Positive stock selection and tailwinds from its style biases drove the outperformance in the quarter. The Fund’s underexposure to higher beta stocks, which performed poorly during the market reversal was another notable factor. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Asset Fund highlighted stocks like Arch Capital Group Ltd. (NASDAQ:ACGL) in the Q3 2023 investor letter. Headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. (NASDAQ:ACGL) is an insurance company. On November 10, 2023, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $85.95 per share. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was 2.13%, and its shares gained 51.40% of their value over the last 52 weeks. Arch Capital Group Ltd. (NASDAQ:ACGL) has a market capitalization of $32.074 billion.
Baron Asset Fund made the following comment about Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q3 2023 investor letter:
“Investments in Financials, Communication Services, and Industrials were also responsible for a portion of the outperformance in the period. Within Financials, higher exposure to this better performing sector coupled with gains from specialty insurer Arch Capital Group Ltd. (NASDAQ:ACGL) and investment management tools provider FactSet Research Systems Inc. added the most value. Arch’s shares gained after the company’s financial results surpassed Wall Street expectations amid favorable industry conditions. Net premiums written grew 28%, underwriting margins remained strong, net investment income more than doubled, operating ROE exceeded 20%, and book value per share grew 18%.”
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. As per our database, 33 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of second quarter which was 28 in the previous quarter.
We discussed Arch Capital Group Ltd. (NASDAQ:ACGL) in another article and shared Madison Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
