Madison Funds, managed by Madison Investment Management, released the “Madison Investors Fund” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 10.2% compared to the 7.6% return for the S&P 500 Index. For the calendar year, the fund declined 13.2% compared to a -18.1% fall for the S&P 500 Index. In the quarter, the Consumer Discretionary sector was the largest positive contributor to the fund’s performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Madison Funds highlighted stocks like Arch Capital Group Ltd. (NASDAQ:ACGL) in the fourth quarter 2022 investor letter. Headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. (NASDAQ:ACGL) is a global insurance company. On January 12, 2023, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $63.07 per share. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was 3.82%, and its shares gained 34.94% of their value over the last 52 weeks. Arch Capital Group Ltd. (NASDAQ:ACGL) has a market capitalization of $23.328 billion.
Madison Funds made the following comment about Arch Capital Group Ltd. (NASDAQ:ACGL) in its fourth-quarter 2022 investor letter:
“In addition to TJX, our top individual contributors during the quarter were Arch Capital Group Ltd. (NASDAQ:ACGL), PACCAR, Alcon, and Analog Devices. Arch is a multi-line insurance company with operations across specialty, reinsurance, and mortgage insurance. Under CEO Marc Grandisson, Arch has a culture of prudent risk management where they actively allocate capital towards areas where pricing is firmer and away from more competitive markets where pricing is weaker. Historically, the insurance industry has cycled between “soft” and “hard” markets. During soft markets, the capacity of supply expands, underwriting standards relax, competition intensifies, and rates decline. During hard markets, capacity shrinks, underwriting standards tighten, competition fades, and rates rise. The current hard insurance market began in 2018 – 2019 after many years of soft market conditions and has continued through 2022. In our view, the current hard market conditions will continue for a couple more years. Through their experienced management team, good balance sheet, and expertise in many specialty lines, we believe Arch is well-positioned to continue capitalizing in the current environment.”
Arch Capital Group Ltd. (NASDAQ:ACGL) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of the third quarter, and 23 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 Q4 2022 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.
