Longleaf Partners: “We sold Credit Suisse (CS) to Fund the More Attractive Opportunities”

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Global Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Global Fund added 3.00% in the fourth quarter versus MSCI World’s return of 7.77%. For the full year, the Fund added 8.20%, while the MSCI World returned 21.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Global Fund, in its Q4 2021 investor letter, mentioned Credit Suisse Group AG (NYSE: CS) and discussed its stance on the firm. Credit Suisse Group AG is a Zürich, Switzerland-based investment banking company with a $21.3 billion market capitalization. CS delivered a -14.11% return since the beginning of the year, while its 12-month returns are down by -43.67%. The stock closed at $8.28 per share on February 28, 2022.

Here is what Longleaf Partners Global Fund has to say about Credit Suisse Group AG in its Q4 2021 investor letter:

“We sold Credit Suisse to fund the more attractive opportunities. After taking an initial, smaller position in Credit Suisse earlier in the year, we ended up selling. We felt like we were getting a free shot at a potential turnaround at this controversial name. However, when more work from our team failed to confirm our initial thesis (especially that a more dramatic shift away from a balance sheet-heavy approach wasn’t going to happen as soon as we first thought possible), we stuck to our process and sold at essentially breakeven vs. our cost.”

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Our calculations show that Credit Suisse Group AG (NYSE: CS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CS was in 11 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 8 funds in the previous quarter. Credit Suisse Group AG (NYSE: CS) delivered a -14.29% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on CS 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.