Should You Hold Everest Re Group, Ltd. (RE) For the Long-Term?
ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed its benchmark, the Russell 1000 Value Index, in the fourth quarter. In the quarter, the strategy gained in 10 of the 11 sectors it was invested in on an absolute basis. The energy and healthcare sectors were the leading contributors however the communication services sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.
ClearBridge Value Equity Strategy highlighted stocks like Everest Re Group, Ltd. (NYSE:RE) in the Q4 2022 investor letter. Headquartered in Hamilton, Bermuda, Everest Re Group, Ltd. (NYSE:RE) is a reinsurance and insurance products provider. On March 1, 2023, Everest Re Group, Ltd. (NYSE:RE) stock closed at $390.84 per share. One-month return of Everest Re Group, Ltd. (NYSE:RE) was 14.47%, and its shares gained 35.19% of their value over the last 52 weeks. Everest Re Group, Ltd. (NYSE:RE) has a market capitalization of $15.304 billion.
ClearBridge Value Equity Strategy made the following comment about Everest Re Group, Ltd. (NYSE:RE) in its Q4 2022 investor letter:
"Everest Re Group, Ltd. (NYSE:RE), in the financials sector, is a reinsurance and property and casualty insurer that has been improving operations and reducing risk. The reinsurance market has transitioned to a very "hard" market in the wake of hurricane Ian and structurally rising reinsurance losses. The demand for reinsurance is estimated to be up over $30 billion, with capital supply down by over $50 billion, which indicates that reinsurance pricing is set to increase 30% to 70% globally in 2023, creating an extremely positive fundamental driver for Everest Re. As a result, Everest Re should enjoy earnings growth in 2023 that is largely insulated from macro risks, and we were able to capitalize on the stock trading close to book value before the reality of this supply/demand mismatch was reflected in the price."
Everest Re Group, Ltd. (NYSE:RE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Everest Re Group, Ltd. (NYSE:RE) at the end of the fourth quarter which was 32 in the previous quarter.
We discussed Everest Re Group, Ltd. (NYSE:RE) in another article and shared the list of financial stocks to buy according to billionaire Cliff Asness. In addition, please check out our hedge fund investor letters Q4 2022 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.
