Hartford is one of the largest providers of property and casualty coverage. And the company has a particular niche within the P&C sector -- covering small and medium-size businesses -- which adds security to Bath's bet. In 2011, 28% of the company's $21.9 billion in revenue was generated from P&C policies for businesses. That kind of scale allows Hartford to operate more efficiently than smaller competitors. Plus, S&P expects a rise in P&C premiums to be driven by growth in small commercial coverage.
Henry Ellenbogen scouts for small-cap companies and even the occasional not-yet-public startup.