Baron Funds, an asset management firm, published its “Baron Partners Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A decline of 0.38% was delivered by the fund’s institutional shares for the Q1 of 2021, while the Index declined 0.57% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron Partners Fund, in its Q1 2021 investor letter, mentioned Arch Capital Group Ltd. (NASDAQ: ACGL), and shared their insights on the company. Arch Capital Group Ltd. is a Hamilton, Bermuda-based insurance company that currently has a $15.9 billion market capitalization. Since the beginning of the year, ACGL delivered a 9.98% return, extending its 12-month gains to 73.61%. As of May 12, 2021, the stock closed at $39.13 per share.
Here is what Baron Partners Fund has to say about Arch Capital Group Ltd. in its Q1 2021 investor letter:
“Arch Capital Group Ltd. is a specialty insurance company based in Bermuda. The stock increased on quarterly earnings that exceeded investor estimates and 15% growth in its book value per share. Pricing trends are favorable in the property & casualty insurance market, and the outlook for the mortgage insurance business has substantially improved as the economy recovers from last year’s pandemic-related uncertainty. We continue to own the stock because we expect earnings growth to resume and admire Arch’s strong management team and underwriting discipline.”
Our calculations show that Arch Capital Group Ltd. (NASDAQ: ACGL) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Arch Capital Group Ltd. was in 34 hedge fund portfolios, compared to 41 funds in the third quarter. ACGL delivered an 11.64% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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