It's been a tough few years for insurance companies. Low interest rates have put a squeeze on the returns of their investment portfolios. In turn, they've had to increase prices. Now, says Bath, demand exceeds supply in the P&C (property and casualty) market. This leaves P&C insurers in a strong position to boost prices again and grow profits. In addition to 2.3 million shares of Hartford, Bath recently bought nearly 618,000 shares of Travelers (Fortune 500) and more than 420,000 shares of , Chubb (Fortune 500). ,
Henry Ellenbogen scouts for small-cap companies and even the occasional not-yet-public startup.