Baron Funds, an investment management company, released its “Baron Partners Fund” second quarter 2024 investor letter. The fund rose modestly in the second quarter and exceeded its primary benchmark, the Russell Midcap Growth Index. A copy of the letter can be downloaded here. The Fund rose 1.02% (institutional Shares) in the quarter and the index declined 3.21%. The fund owns competitively advantaged, well-managed, principally publicly owned, growth businesses. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Baron Partners Fund highlighted stocks like Arch Capital Group Ltd. (NASDAQ:ACGL), in the second quarter 2024 investor letter. Arch Capital Group Ltd. (NASDAQ:ACGL) offers insurance, reinsurance, and mortgage insurance products. One-month return of Arch Capital Group Ltd. (NASDAQ:ACGL) was 0.89% and its shares gained 26.64% of their value over the last 52 weeks. On August 12, 2024, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $97.97 per share with a market capitalization of $36.842 billion.
Baron Partners Fund stated the following regarding Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q2 2024 investor letter:
“Specialty insurer Arch Capital Group Ltd. (NASDAQ:ACGL) contributed to performance after reporting positive financial results that exceeded Street expectations. Operating ROE was 21% in the first quarter, and book value per share rose 40% due to strong underwriting profitability and the establishment of a deferred tax asset at the end of 2023. Favorable conditions persist in the P&C insurance market with strong growth and attractive returns despite signs of increasing competition. We continue to own the stock due to Arch’s capable management team and our expectation of significant growth in earnings and book value.”
A close-up image of an insurance policy with hands standing firmly on top, conveying security.
Arch Capital Group Ltd. (NASDAQ:ACGL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Arch Capital Group Ltd. (NASDAQ:ACGL) at the end of the first quarter which was 40 in the previous quarter. While we acknowledge the potential of Arch Capital Group Ltd. (NASDAQ:ACGL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Arch Capital Group Ltd. (NASDAQ:ACGL) and shared Artisan Mid Cap Value Fund’s views on the company. Arch Capital Group Ltd. (NASDAQ:ACGL) contributed to the performance of Baron Asset Fund in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2024 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.