Rising Interest Rates Challenged SVB Financial Group (SIVB) in Q4

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy returned 10.96% net in the fourth quarter compared to a 7.24% return for the Russell 1000 Index. Holdings in the technology and consumer discretionary sectors helped the strategy to outperform in the quarter. The strategy returned better than the index during 2022 but still declined by double digits. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Large Cap Strategy highlighted stocks like SVB Financial Group (NASDAQ:SIVB) in the Q4 2022 investor letter. Headquartered in Santa Clara, California, SVB Financial Group (NASDAQ:SIVB) is a financial services company. On February 14, 2023, SVB Financial Group (NASDAQ:SIVB) stock closed at $310.77 per share. One-month return of SVB Financial Group (NASDAQ:SIVB) was 23.33%, and its shares lost 52.49% of their value over the last 52 weeks. SVB Financial Group (NASDAQ:SIVB) has a market capitalization of $18.389 billion.

Diamond Hill Large Cap Strategy made the following comment about SVB Financial Group (NASDAQ:SIVB) in its Q4 2022 investor letter:

“Our weakest performers in Q4 were regional bank SVB Financial Group (NASDAQ:SIVB) and global online retailer Amazon.com. The rapidly rising interest rate environment has been exerting pressure on SVB’s net interest margin as well as impacting the innovation economy, which is the company’s primary area of focus. Upon revisiting our long-term thesis, we decided to sell our position in favor of more attractive opportunities.”

SVB Financial Group (NASDAQ:SIVB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held SVB Financial Group (NASDAQ:SIVB) at the end of the third quarter, which was 31 in the previous quarter.

We discussed SVB Financial Group (NASDAQ:SIVB) in another article and shared the list of most undervalued bank stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2022 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.