Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Baron Asset Fund’s Opinion on Arch Capital Group (ACGL) Stock

Baron Asset Fund recently published its first-quarter commentary – a copy of which can be downloaded here. During the first quarter of 2020, the Baron Asset Fund returned -16.63% (institutional shares). In comparison, the benchmark S&P 500 Index was down 19.60%, while the Russell Midcap Growth Index was down 20.04%.

In the said letter, Baron Asset Fund highlighted a few stocks and Arch Capital Group Ltd. (NASDAQ:ACGL) is one of them. Year-to-date, ACGL stock lost 44.8% and on May 5th it had a closing price of $23.74. Its market cap is of $9.7 billion. Here is what Baron Asset Fund said:

“Arch Capital Group Ltd. is a specialty insurance company based in Bermuda. The company reported better-than-expected quarterly earnings with its book value per share gaining 23%. However, the stock underperformed over concerns that widespread business closures due to the COVID-19 pandemic could cause higher losses for business interruption and event cancellation insurance policies. A recession could also cause higher losses for its economically sensitive mortgage insurance business.”

In Q4 2019, the number of bullish hedge fund positions on ACGL stock increased by about 5% from the previous quarter (see the chart here).

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.