Favorable Market Conditions Lifted Arch Capital Group Ltd. (ACGL) Higher

Madison Investments, an investment advisor, released its “Madison Investors Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) fell by 1.03% compared to a 4.28% return for the S&P 500 index. YTD the fund returned 8.50% compared to a 15.29% return for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Madison Investors 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 -4.11% and its shares gained 20.54% of their value over the last 52 weeks. On July 18, 2024, Arch Capital Group Ltd. (NASDAQ:ACGL) stock closed at $98.24 per share with a market capitalization of $36.889 billion.

Madison Investors Fund stated the following regarding Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q2 2024 investor letter:

"At Arch Capital Group Ltd. (NASDAQ:ACGL), earnings continue to grow nicely. As we’ve discussed for the last few years, the supply-demand situation in both reinsurance and primary insurance markets remains favorable, and we expect profits to stay elevated for some time and perhaps even grow moderately from current levels. Furthermore, Arch continues to roll over its fixed income portfolio at more favorable coupon rates."

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. s 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. Arch Capital Group Ltd. (NASDAQ:ACGL) reported $736 million in underwriting income in the first quarter and a 5.2% increase in book value per share. 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 the list of best undervalued stocks to buy along with the expert opinion on the future growth prospects of the US economy. Madison Investors Fund mentioned in its Q1 2024 investor letter that favorable market conditions boosted Arch Capital Group Ltd. (NASDAQ:ACGL) during the 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.