Harding Loevner, an asset management company, released its “Global Equity” second quarter investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -20.63% net of fees compared to a return of -15.53% for the MSCI All Country World Index and a return of -16.05% for the MSCI World Index. Poor stocks among expensive, fast-growing companies that continued to see selling pressure affected the fund’s performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Harding Loevner discussed stocks like SVB Financial Group (NASDAQ:SIVB) in the second quarter investor letter. Headquartered in Santa Clara, California, SVB Financial Group (NASDAQ:SIVB) is a financial services company. On September 23, 2022, SVB Financial Group (NASDAQ:SIVB) stock closed at $340.83 per share. One-month return of SVB Financial Group (NASDAQ:SIVB) was -15.80% and its shares lost 49.46% of their value over the last 52 weeks. SVB Financial Group (NASDAQ:SIVB) has a market capitalization of $20.137 billion.
Here is what Harding Loevner specifically said about SVB Financial Group (NASDAQ:SIVB) in its Q2 2022 investor letter:
“Some of the same dynamics appear to be at work in the share price slump of SVB Financial Group (NASDAQ:SIVB), the preferred lender for large swathes of the US technology, life sciences, and venture capital industries. SVB’s primary subsidiary, Silicon Valley Bank, is a longstanding and unrivaled source of early-stage financing and associated services to the cutting-edge technology and life science companies and their backers that comprise the so-called “innovation economy.” The Bank has a long history of generating double-digit organic loan growth, deposit growth, earnings growth, and book value per share growth—all while maintaining pristine asset quality. One key to the company’s success is its ability to secure low-cost deposit funding due to its close working relationships with the founders and executives of not only the pioneering companies themselves but also with their venture and private equity backers. In addition, the bank’s asset liability structure—the short duration of its investment security portfolio plus its high percentage of variable-rate general purpose business loans—makes its net interest income strongly leveraged to rising rates. Nonetheless, SVB’s shares have been volatile when uncertainty casts a shadow over the tech sector and consequently the innovation economy more broadly. Over our long period of holding SVB, we have chosen to look through such cyclical setbacks to benefit over the long term from its unparalleled earnings power among financials. By our estimates, SVB’s share price now reflects expectation of a deep and extended slump in the innovation economy, a possible but unlikely scenario.”
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SVB Financial Group (NASDAQ:SIVB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios SVB Financial Group (NASDAQ:SIVB) at the end of the second quarter which was 34 in the previous quarter.
We discussed SVB Financial Group (NASDAQ:SIVB) in another article and shared Diamond Hill Capital’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
