Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

ACE Ltd. Has Had A Big Run But Probably Still Has More Upside

Switzerland-based specialty insurer and reinsurer ACE Ltd (NYSE:ACE) is a somewhat unique company - even though the stock has run-up significantly over the last few years, I believe the stock is still a good buy at these levels. A combination of rising interest rates and an eventual turn-around in the reinsurance market should lead to better earnings power going forward, while a 2.5% yield, and a trailing 12 month P/E under 10X buttress the stock price at these levels. Given all this, I view ACE as a good buy at these levels, though I am also cautious due to the general turmoil and rotation going on in some sectors of the market right now.

The most important fundamental...

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