Is it a Good Choice to Invest in Charles Schwab (SCHW)?

Baron Funds, an asset management firm, published its “Baron Asset Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Against this backdrop, Baron Asset Fund (the “Fund”) gained 5.04% (Institutional Shares), while the Russell Midcap Growth Index (the “Index”) gained 2.85%, and the S&P 500 Index gained 11.03%. The Fund’s outperformance was attributable to favorable stock selection and tailwinds from certain style biases, notably its underexposure to the poor performing residual volatility and beta factors. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Asset Fund, 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 $180.6 billion market capitalization. SCHW delivered a 13.59% return since the beginning of the year, while its 12-month returns are up by 62.60%. The stock closed at $95.53 per share on January 17, 2022.

Here is what Baron Asset Fund has to say about The Charles Schwab Corporation in its Q4 2021 investor letter:

“The Fund’s Financials holdings appreciated by double-digit percentages, with online brokerage firm The Charles Schwab Corp. Schwab’s stock was up as the company’s continued success attracting new customers to its platform resulted in mid-single-digit organic revenue growth and more than $7.5 trillion in assets.”

Charles Schwab, bank, finance

Photo by Brendan Church on Unsplash

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 a 18.08% 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.