The Charles Schwab Corporation (SCHW) Benefited From Interest Rate Hikes

Baron Funds, an investment management company, released its “Baron FinTech Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund gained 4.98% (Institutional Shares) compared to a 7.56% gain for the S&P 500 benchmark index and a 3.91% return for the FactSet Global FinTech Index. Favorable stock selection in Information Services, Payments, and Capital Markets contributed to the gains of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron FinTech Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in its Q4 2022 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a financial services company. On February 17, 2023, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $80.32 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was 4.27% and its shares lost 6.18% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $149.937 billion.

Baron FinTech Fund made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its Q4 2022 investor letter:

“Shares of online brokerage firm The Charles Schwab Corporation (NYSE:SCHW) rose in the quarter on rising interest rates, which should generate increased profits on Schwab’s more than $600 billion of interest-earning assets. Despite turbulent markets, the company attracted over $400 billion of net new client assets over the past 12 months. In addition to strong organic growth, we believe operating expenses per client assets will drop to record lows once the equity markets improve.”

The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the third quarter, and 68 in the previous quarter.

We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared RiverPark Large Growth Fund’s views on the company. 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.