Ensemble Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy outperformed its benchmark, the S&P 500, after three consecutive quarters. The strategy declined 2.6% compared to a 4.9% decline for the S&P 500 Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Ensemble Capital discussed stocks like The Charles Schwab Corporation (NYSE:SCHW) in the Q3 2022 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a financial service company. On October 17, 2022, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $67.43 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was -8.07% and its shares lost 17.30% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $127.921 billion.
Here is what Ensemble Capital specifically said about The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2022 investor letter:
“The Charles Schwab Corporation (NYSE:SCHW) (+14.1%): While the value of the financial assets Schwab holds for clients has been under significant pressure this year, clients are also holding more cash and Schwab is earning more income for any given level of client cash as interest rates rise. In the company focus section below, we offer out detailed thoughts on the company.
As we have discussed before, Schwab’s core value proposition is about helping its customers, both individual investors and independent registered investment advisors like Ensemble, intelligently and efficiently invest in capital markets. What everyone might not be as familiar with is how Schwab’s business model has changed over the years as its offerings and capabilities evolved, initially being driven by trading commissions, then distribution fees on third party mutual funds, and later asset-based fees on its own proprietary mutual funds and ETFs, and more recently net interest revenue that is derived from its customers’ cash holdings sitting on Schwab’s balance sheet.
Through each of these revenue transitions, Schwab has accelerated the arc of industry trends that leveraged technology and scale to commoditize each of the earlier revenue sources. While doing this, Schwab grew its scope of services and revenue to new more profitable levels built off its ability to drive operating costs lower with scale thereby offering excellent value and service to millions of customers relative to competitors…” (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, 68 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the second quarter, which was 78 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared the stock picks in The Motley Fool’s 1623 Capital latest portfolio. In addition, please check out our hedge fund investor letters Q3 2022 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.
