Michael McCaul Stock Portfolio: 5 Stocks To Consider

4. Arch Capital Group Ltd. (NASDAQ:ACGL)

Number of Hedge Fund Holders: 33  

Arch Capital Group Ltd. (NASDAQ:ACGL) provides insurance products and services. The latest filings by McCaul have been disclosures on the purchase of Arch Capital Group Ltd. (NASDAQ:ACGL) stock. The lawmaker bought shares of the firm on November 4, 2021. The transaction was worth $1,000-$15,000. 

Elite hedge funds remain bullish on Arch Capital Group Ltd. (NASDAQ:ACGL) stock as well. At the end of the fourth quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Arch Capital Group Ltd. (NASDAQ:ACGL), compared to 31 in the preceding quarter worth $1.2 billion.

In its Q4 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Arch Capital Group Ltd. (NASDAQ:ACGL) was one of them. Here is what the fund said:

“We repurchased global insurer Arch Capital in Q1 2020 when the pandemic began. As a long-time holding, Arch is a company we know well. It’s an industry leader capably managed by a long-tenured team that has achieved an enviable underwriting record, while at the same time seeking opportunistic growth. Arch’s insurance business is a three-legged stool, with lines covering primary insurance, reinsurance and mortgage insurance. Primary insurance and reinsurance are influenced by conditions in the property casualty industry, where pricing is currently positive following concerns about inadequate pricing over the past few years. The mortgage insurance industry is working its way through complications wrought by the pandemic, but in contrast to other underwriters that pulled back from writing business, Arch has leaned into this business as it saw an opportunity to earn excess returns—once again showing management’s acumen for creating value during a disruption.”