Shares of Arch Capital Group Ltd. (NASDAQ:ACGL), a specialty insurance and reinsurance company, fell despite reporting what we believe to be good financial results. Arch continued to generate above-average returns because of profitable underwriting, benign catastrophe losses, and favorable reserve development. In addition, its recently-acquired mortgage insurance business is scaling up, and we believe it has a long runway for growth.
From Baron Funds' Baron Asset Fund commentary for fourth quarter 2015.
