Does Arch Capital Group Ltd. (ACGL) Have a High Growth Potential?

Baron Funds, an investment management company, released its “Baron Partners Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. Despite the market volatility, the fund performed well and returned 23.41% in the first quarter, which exceeds the Russell Midcap Growth Index’s 9.14% return and the S&P 500 Index’s 7.50% return in the same period. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Partners Fund highlighted stocks like Arch Capital Group Ltd. (NASDAQ:ACGL) in the first quarter 2023 investor letter. Headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. (NASDAQ:ACGL) is an insurance company. On May 22, 2023, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $73.50 per share. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was 1.25%, and its shares gained 59.33% of their value over the last 52 weeks. Arch Capital Group Ltd. (NASDAQ:ACGL) has a market capitalization of $27.373 billion.

Baron Partners Fund made the following comment about Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q1 2023 investor letter:

“Arch Capital Group Ltd. (NASDAQ:ACGL) is a specialty insurance company based in Bermuda. Shares rose after the company reported strong quarterly results driven by 33% growth in earned premiums, favorable reserve development, below-average catastrophe losses, and higher investment income. Pricing trends in the property and casualty insurance market remain favorable, and rising interest rates are driving higher investment yields. We continue to own the stock due to Arch’s strong management team and our expectation of strong growth in earnings and book value.”

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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, 25 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of the fourth quarter which was 26 in the previous quarter.

We discussed Arch Capital Group Ltd. (NASDAQ:ACGL) in another article and shared the list of biggest reinsurance companies in the world. In addition, please check out our hedge fund investor letters Q1 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.