Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 8.6% in the second quarter compared to an 8.7% return for the S&P 500 Index. Year-to-date, the fund returned 17.4% compared to a 16.9% return for the benchmark. Despite the headwinds, the fund has outperformed through the first half of the year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Fund highlighted stocks like First Citizens BancShares, Inc. (NASDAQ:FCNCA) in the second quarter 2023 investor letter. Headquartered in Raleigh, North Carolina, First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a bank holding company that provides retail and commercial banking services. On July 10, 2023, First Citizens BancShares, Inc. (NASDAQ:FCNCA) stock closed at $1,286.00 per share. One-month return of First Citizens BancShares, Inc. (NASDAQ:FCNCA) was -1.45%, and its shares gained 89.12% of their value over the last 52 weeks. First Citizens BancShares, Inc. (NASDAQ:FCNCA) has a market capitalization of $18.577 billion.
Oakmark Fund made the following comment about First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its second quarter 2023 investor letter:
“First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a leading regional bank with a history of solid financial results through the economic cycle. The company has a low-cost deposit franchise, a history of prudent lending and an attractive geographic footprint concentrated in Southeast and West Coast U.S. markets. First Citizens has produced impressive results over the last 14 years under the leadership of CEO Frank Holding. Specifically, the company has generated meaningful growth in tangible book value per share driven by strong operating results and accretive acquisitions. As a result, First Citizens has been one of the best[1]performing bank stocks over this period. Although we have owned First Citizens in the Oakmark Select Fund since early 2021, First Citizens’ purchase of Silicon Valley Bank out of FDIC receivership this March drove a significant increase in both the intrinsic value and the market cap—thereby creating an opportunity for us to initiate a position in the Oakmark Fund. The stock is currently trading at a discount to its tangible book value per share and at a high-single digit multiple of our estimate of normalized earnings. We view this price as attractive for such a high-quality and well-managed banking franchise.”
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First Citizens BancShares, Inc. (NASDAQ:FCNCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held First Citizens BancShares, Inc. (NASDAQ:FCNCA) at the end of first quarter which was 35 in the previous quarter.
We discussed First Citizens BancShares, Inc. (NASDAQ:FCNCA) in another article and shared Bronte Amalthea Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
