Is Webster Financial Corporation (WBS) a Smart Long-Term Buy?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market environment, the portfolio’s negative returns still outpaced the Russell 2000 Index by a healthy margin in Q1.  Try to take 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, Diamond Hill Small Cap Fund mentioned Webster Financial Corporation (NYSE:WBS) and explained its insights for the company. Founded in 1935, Webster Financial Corporation (NYSE:WBS) is a Waterbury, Connecticut-based banking company with a $7.7 billion market capitalization. Webster Financial Corporation (NYSE:WBS) delivered a -22.53% return since the beginning of the year, while its 12-month returns are down by -13.38%. The stock closed at $43.26 per share on July 12, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Webster Financial Corporation (NYSE:WBS) in its Q1 2022 investor letter:

“Webster Financial Corporation (NYSE:WBS) is also a new name in the portfolio, having completed its merger of our prior holding Sterling Bank. The combination means that Webster’s large health care savings (HSA) account platform, which is a good source of low-cost deposits, will be paired with Sterling’s organic loan generation engine.

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Our calculations show that Webster Financial Corporation (NYSE:WBS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Webster Financial Corporation (NYSE:WBS) was in 34 hedge fund portfolios at the end of the first quarter of 2022, compared to 25 funds in the previous quarter. Webster Financial Corporation (NYSE:WBS) delivered a -12.69% return in the past 3 months.

In June 2022, we published an article that includes Webster Financial Corporation (NYSE:WBS) in 5 Best Dividend Stocks to Buy According to Bernard Horn’s Polaris Capital Management. 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.