Diamond Hill Capital Comments on Brown & Brown Inc

By Vera Yuan,

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We initiated new positions in several companies during the quarter. Brown & Brown, Inc. ( BRO ) is a mid-sized insurance broker. We view the insurance brokerage industry as highly attractive with good secular growth prospects, low capital requirements, and the ability to generate high free cash flow. In addition, the management team has been successful purchasing smaller brokers and operating within a highly decentralized business model. Investor skepticism related to recent large acquisitions, which we believe will prove unfounded, created an attractive valuation.

From Diamond Hill Capital 's Small Cap Fund Commentary - First Quarter 2014 .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: BRO

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