Here’s What Makes Charles Schwab (SCHW) a Great Long-Term Investment

Baron Funds, an asset management firm, published its “Baron Asset Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Baron Asset Fund (the “Fund”) fell 14.52% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) fell 12.58%. The S&P 500 Index, which comprises both growths and value-oriented large-cap stocks, fell 4.60%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Baron Asset Fund mentioned The Charles Schwab Corporation (NYSE:SCHW) and explained its insights for the company. Founded in 1971, The Charles Schwab Corporation (NYSE:SCHW) is a Westlake, Texas-based multinational financial services company with a $124.4 billion market capitalization. The Charles Schwab Corporation (NYSE:SCHW)  delivered a -21.99% return since the beginning of the year, while its 12-month returns are down by -10.43%. The stock closed at $65.61 per share on May 13, 2022.

Here is what Baron Asset Fund has to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2022 investor letter:

“Outperformance of the Fund’s investments in Communication Services, Financials, and Industrials and lower exposure to the lagging Consumer Discretionary sector added the most value. Within Financials, higher exposure to this outperforming sector and gains from online brokerage firm The Charles Schwab Corp (NYSE:SCHW) bolstered relative results. Schwab’s shares gained because of the positive impact higher interest rates will have on its future earnings.”

Investments, Finance

Our calculations show that The Charles Schwab Corporation (NYSE:SCHW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Charles Schwab Corporation (NYSE:SCHW) was in 72 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 59 funds in the previous quarter. The Charles Schwab Corporation (NYSE:SCHW) delivered a -26.37% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on The Charles Schwab Corporation (NYSE:SCHW) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.