Here’s Why Madison Small Cap Fund Sold Arch Capital Group Ltd. (ACGL)

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund (Class Y) returned 5.1% compared to a 5.2% each rise for the Russell 2000 and the Russell 2500 Index. The best-performing sectors of the portfolio were Industrials, Materials, and Financials while Consumer Staples, Information Technology, and Healthcare were the worst-performing sectors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Small Cap Fund highlighted stocks like Arch Capital Group Ltd. (NASDAQ:ACGL) in the second quarter 2023 investor letter. Headquartered in Pembroke, Bermuda, Arch Capital Group Ltd. (NASDAQ:ACGL) is an insurance company. On July 18, 2023, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $80.84 per share. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was 14.20%, and its shares gained 84.23% of their value over the last 52 weeks. Arch Capital Group Ltd. (NASDAQ:ACGL) has a market capitalization of $30.193 billion.

Madison Small Cap Fund made the following comment about Arch Capital Group Ltd. (NASDAQ:ACGL) in its second quarter 2023 investor letter:

“In the second quarter, we sold three (National Instruments, Texas Capital Bancshares, and Arch Capital Group). Arch Capital Group Ltd. (NASDAQ:ACGL)l was a very successful investment for the Small Cap Fund since our initial investment in 2020. The pandemic-induced market sell-off gave us the opportunity to invest in this outstanding insurance franchise. Although the fundamentals remain strong, Arch has graduated above our $20 billion market cap threshold.”

Arch Capital Group Ltd. (NASDAQ:ACGL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of first quarter which was 25 in the previous quarter.

We discussed Arch Capital Group Ltd. (NASDAQ:ACGL) in another article and shared the list of biggest health insurance companies in the US. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

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