Aristotle Capital Sold its Chubb (CB) Stake Despite still consider Chubb to be a high-quality business

Aristotle Capital Management, an independent/employee-owned investment management organization, published its “Global Equity Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, Aristotle Capital’s Global Equity Composite posted a total U.S. dollar return of -9.19% gross of fees (-9.28% net of fees), compared to the MSCI World Index, which returned -5.15%, and the MSCI ACWI Index, which returned -5.36%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Aristotle Capital Management Global Equity mentioned Chubb Limited (NYSE:CB) and explained its insights for the company. Founded in 1882, Chubb Limited (NYSE:CB) is a Zürich, Switzerland-based publicly traded property & casualty insurance company with an $88.1 billion market capitalization. Chubb Limited (NYSE:CB) delivered a 7.59% return since the beginning of the year, while its 12-month returns are up by 25.18%. The stock closed at $207.98 per share on May 25, 2022.

Here is what Aristotle Capital Management Global Equity has to say about Chubb Limited (NYSE:CB) in its Q1 2022 investor letter:

“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.”

Our calculations show that Chubb Limited (NYSE:CB) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Chubb Limited (NYSE:CB) was in 31 hedge fund portfolios at the end of the first quarter of 2022, compared to 34 funds in the previous quarter. Chubb Limited (NYSE:CB) delivered a 3.26% return in the past 3 months.

In April 2021, we also shared another hedge fund’s views on Chubb Limited (NYSE:CB) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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