Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter the strategy returned -6.0% net of fees compared to the S&P 500’s -3.3% return. As the quarter demonstrated, the markets are uncertain. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Patient Capital Management highlighted stocks like UBS Group AG (NYSE:UBS) in the third quarter 2023 investor letter. Based in Zurich, Switzerland, UBS Group AG (NYSE:UBS) provides financial management solutions. On November 1, 2023, UBS Group AG (NYSE:UBS) stock closed at $24.03 per share. One-month return of UBS Group AG (NYSE:UBS) was -0.21%, and its shares gained 53.15% of their value over the last 52 weeks. UBS Group AG (NYSE:UBS) has a market capitalization of $77.563 billion.
Patient Capital Management made the following comment about UBS Group AG (NYSE:UBS) in its Q3 2023 investor letter:
“UBS Group AG (NYSE:UBS) had a strong quarter continuing to rebound from the bank sell-off earlier in the year. During the height of the banking crisis, UBS Group purchased its largest local competitor, Credit Suisse, for an 80% discount. We bought after the deal, believing the market’s myopic focus on short-term integration risks failed to properly value the attractive set of assets. UBS Group successfully restructured its business in preceding years allowing the company to reach best in class return metrics, hitting a Return on Common Equity Tier 1 (RoCET1) of 17.5% in 2021, within their long-term range of 15-18%. While the integration of Credit Suisse’s assets will make the financials messy for the next few years, the company should come out stronger on the other side with a substantially larger wealth management business. Wealth Management will make up 68% of invested assets pushing them to be the number one global player ahead of Morgan Stanley. We estimate $4-6 in earnings power in 3-5 years, meaning you’re only paying 4-6x earnings for a premium asset with a 2.2% dividend yield. Despite the strong move, we continue to see attractive upside from here.”
A busy banker helping a customer with banking details, symbolizing the company’s trustworthiness.
UBS Group AG (NYSE:UBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held UBS Group AG (NYSE:UBS) at the end of second quarter which was 30 in the previous quarter.
We discussed UBS Group AG (NYSE:UBS) in another article and shared the list of best European bank stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.
