Baron Funds :”Arch Capital Group Ltd. (ACGL)’s Valuation Remains Attractive”

Baron Funds, an asset management company, released its “Baron Focused Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined 19.91% in the second quarter compared to a 19.55% fall for the Russell 2500 Growth Index. Inflation, the Ukraine war, and interest rate hikes impacted the quarterly performance of the fund. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Baron Funds discussed stocks like Arch Capital Group Ltd. (NASDAQ:ACGL) in the second quarter investor letter. Based in Pembroke, Bermuda, Arch Capital Group Ltd. (NASDAQ:ACGL) is an insurance, reinsurance, and mortgage insurance providing company. On September 12, 2022, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $47.09 per share. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was -0.88% and its shares gained 19.94% of their value over the last 52 weeks. Arch Capital Group Ltd. (NASDAQ:ACGL) has a market capitalization of $17.383 billion.

Here is what Baron Funds specifically said about Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q2 2022 investor letter:

Arch Capital Group Ltd. (NASDAQ:ACGL)’s share price declined 6.1% in the quarter and hurt performance by 30 bps. This was as the company continued to increase premiums written while raising prices. This strong pricing is resulting in robust returns on investments with increased earnings and cash flow that the company is using to repurchase its shares. We continue to believe that Arch will continue to generate mid-teens returns on capital. Arch’s valuation remains attractive.”

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Arch Capital Group Ltd. (NASDAQ:ACGL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of the second quarter which was 38 in the previous quarter.

We discussed Arch Capital Group Ltd. (NASDAQ:ACGL) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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