Giverny Capital, an asset management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of 10.73% was delivered by the fund for the fourth quarter of 2021, slightly below its benchmark, the S&P 500 Index, which delivered an 11.03% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Giverny Capital Asset Management, in its Q4 2021 investor letter, mentioned The Charles Schwab Corporation (NYSE: SCHW) and discussed its stance on the firm. The Charles Schwab Corporation is a Westlake, Texas-based financial services company with a $168.0 billion market capitalization. SCHW delivered a 5.72% return since the beginning of the year, while its 12-month returns are up by 72.51%. The stock closed at $88.91 per share on January 28, 2022.
Here is what Giverny Capital Asset Management has to say about The Charles Schwab Corporation in its Q4 2021 investor letter:
“Our fourth-largest holding at year-end was Charles Schwab. Schwab shares rose 60%, buoyed by twin tailwinds of asset growth and the prospect of rising interest rates. Schwab is an exceptional business – it has grown new brokerage accounts at a steady 5%-6% clip for many years, and even faster recently. It has won the trust of retail investors – it’s hard to overstate how important trust is in financial services – but also offers financial advisers a low-cost custodial solution that has helped it win large chunks of business from legacy players like Merrill Lynch or Morgan Stanley. Schwab earns the bulk of its profit on interest rate spreads, or the difference between what it earns on cash deposits held in customers’ brokerage and bank accounts and what it pays to the owners of those accounts. As interest rates rise, so Schwab’s earnings. We’re happy about that, but we see Schwab continuing to grow brokerage accounts for years to come.”
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Our calculations show that The Charles Schwab Corporation (NYSE: SCHW) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SCHW was in 59 hedge fund portfolios at the end of the third quarter of 2021, compared to 72 funds in the previous quarter. The Charles Schwab Corporation (NYSE: SCHW) delivered an 8.39% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on SCHW in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
