Giverny Capital Asset Management, LLC, an investment management company, recently published its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The model portfolio of the firm appreciated 6.06%, net of fees in the first quarter compared to a 7.50% return for the Standard & Poor’s 500 Index. For the year ended March 31, 2023, the portfolio returned -10.62% compared to -7.73% for the benchmark, net of fees. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Giverny Capital highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the first quarter 2023 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. On April 25, 2023, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $51.03 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was -7.57%, and its shares lost 25.592% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $92.809 billion.
Giverny Capital made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2023 investor letter:
“Our holding The Charles Schwab Corporation (NYSE:SCHW), which has a bank inside its operations, lost 37% of its value as investors feared it, too, would lose deposits (and earnings power). As Schwab began the year as a 7.0% weight in the portfolio, this hurt as much as the wipeout at First Republic. The declines in First Republic and Schwab together cost us a full five percentage points of our capital. Other financial holdings M&T Bank, Credit Acceptance and JP Morgan also lost value during the quarter.
Moving to Schwab, there are some similarities with First Republic, but I feel pretty strongly that we’re going to be fine holding on to the stock.
I sometimes describe Schwab as the Costco of financial services. Others liken it to the auto insurer Progressive: it has the lowest operating costs in a huge, commoditized industry. Schwab passes on most of the savings from its low cost structure to clients, creating loyalty and trust, which in turn builds its brand. But Schwab has, over many years, reduced fees in so many areas that today it may be overly dependent on the net interest margin it earns on cash swept into its bank…” (Click here to read the full text)
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The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the fourth quarter which was 75 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared the list of stocks receiving downgrades from analysts. In addition, please check out our hedge fund investor letters Q1 2023 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.
