Is it a Wise Decision to Acquire Arch Capital (ACGL) Shares?

Baron Funds, an asset management firm, published its “Baron Asset Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Asset Fund (the “Fund”) fell 14.52% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) fell 12.58%. The S&P 500 Index, which comprises both growths and value-oriented large-cap stocks, fell 4.60%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Asset Fund mentioned Arch Capital Group Ltd. (NASDAQ:ACGL) and explained its insights for the company. Founded in 1995, Arch Capital Group Ltd. (NASDAQ:ACGL) is a Hamilton, Bermuda-based public limited liability company with a $17.2 billion market capitalization. Arch Capital Group Ltd. (NASDAQ:ACGL) delivered a 3.53% return since the beginning of the year, while its 12-month returns are up by 14.51%. The stock closed at $46.02 per share on May 13, 2022.

Here is what Baron Asset Fund has to say about Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q1 2022 investor letter:

“Outperformance of the Fund’s investments in Communication Services, Financials, and Industrials and lower exposure to the lagging Consumer Discretionary sector added the most value. Within Financials, higher exposure to this outperforming sector and gains from specialty insurance company Arch Capital Group Ltd. (NASDAQ:ACGL) bolstered relative results. Arch gained after reporting above-consensus quarterly earnings results, coupled with an 11% increase in its book value per share.”

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Our calculations show that Arch Capital Group Ltd. (NASDAQ:ACGL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Arch Capital Group Ltd. (NASDAQ:ACGL) was in 33 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 31 funds in the previous quarter. Arch Capital Group Ltd. (NASDAQ:ACGL) delivered a -1.16% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Arch Capital Group Ltd. (NASDAQ:ACGL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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