Should You Now Sell Your SVB Financial Group (SIVBQ) Shares?

Baron Funds, an investment management firm, released its “Baron Durable Advantage Fund” first quarter 2023 investor letter, a copy of which can be downloaded here. The Baron Durable Advantage Fund gained 16.0% during the first quarter, compared favorably to its S&P 500 benchmark which earned a 7.5% return for the same period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.

In its Q1 2023 investor letter, Baron Durable Advantage Fund mentioned SVB Financial Group (OTC:SIVBQ) and explained its insights for the company. Founded in 1982, SVB Financial Group (OTC:SIVBQ) is a Santa Clara, California-based financial services company with a $17.9 million market capitalization. SVB Financial Group (OTC:SIVBQ) delivered a -99.87% return since the beginning of the year, while its 12-month returns are down by -99.93%. The stock closed at $0.3038 per share on June 09, 2023.

Here is what Baron Durable Advantage Fund has to say about SVB Financial Group (OTC:SIVBQ) in its Q1 2023 investor letter:

“On March 9 we witnessed the collapse of Silicon Valley Bank (OTC:SIVBQ), the 16th largest bank in the U.S., followed by the Swiss government-induced takeover of Credit Suisse by UBS for pennies on the dollar. One day SVB’s stock was trading at $267, with a market cap of $16 billion. Two days later it was worthless, as clients tried to withdraw $42 billion in deposits in a span of 24 hours (an astounding rate of almost $500,000 per second). For comparison, the biggest recorded bank run during the 2008 GFC had clients pulling $17 billion from Washington Mutual over the course of 10 days. After SVB went under, Signature Bank followed within hours, and First Republic Bank and Credit Suisse needed to be rescued within days.”

Our calculations show that SVB Financial Group (OTC:SIVBQ) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. SVB Financial Group (OTC:SIVBQ) was in 4 hedge fund portfolios at the end of the first quarter of 2023, compared to 45 funds in the previous quarter. SVB Financial Group (OTC:SIVBQ) delivered a -99.71% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.

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Disclosure: None. This article is originally published at Insider Monkey.