Live Oak Bancshares (LOB) Benefited from Stabilizing Financial Environment

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q3 2023, US stocks fell by 3%, bringing YTD gains to around 12% as measured by the Russell 3000 Index. The portfolio trailed the Russell 2000 Index in Q3 and returned -5.62% bringing the YTD returns to 6.70%. Relative weakness in consumer discretionary holdings, industrials, and technology impacted the performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Diamond Hill Small Cap Fund highlighted stocks like Live Oak Bancshares, Inc. (NYSE:LOB) in the third quarter 2023 investor letter. Headquartered in Wilmington, North Carolina, Live Oak Bancshares, Inc. (NYSE:LOB) is a bank holding company for Live Oak Banking Company that offers commercial banking products and services. On November 8, 2023, Live Oak Bancshares, Inc. (NYSE:LOB) stock closed at $30.49 per share. One-month return of Live Oak Bancshares, Inc. (NYSE:LOB) was 4.70%, and its shares gained 0.23% of their value over the last 52 weeks. Live Oak Bancshares, Inc. (NYSE:LOB) has a market capitalization of $1.372 billion.

Diamond Hill Small Cap Fund made the following comment about Live Oak Bancshares, Inc. (NYSE:LOB) in its Q3 2023 investor letter:

“Other top individual contributors in Q3 included Centrus Energy, Live Oak Bancshares, Inc. (NYSE:LOB) and FTAI Aviation. Regional bank Live Oak Bancshares has benefited from improved sentiment and a stabilized financials environment in the wake of Q1’s stresses.”

A customer using an ATM machine in a bank lobby.

Live Oak Bancshares, Inc. (NYSE:LOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Live Oak Bancshares, Inc. (NYSE:LOB) at the end of second quarter which was 16 in the previous quarter.

We discussed Live Oak Bancshares, Inc. (NYSE:LOB) in another article and shared Diamond Hill Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.