What Makes Bank of Hawaii Corporation (BOH) a Good Short Position?

Diamond Hill Capital, an investment management company, released its “Long-Short Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The positive returns of the portfolio outperformed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index), both of which were negative in Q3. The short book trailed the index, providing a relative tailwind to performance. Long financial holdings were another source of relative strength. On the other hand, the fund’s long industrials and healthcare holdings were sources of relative weakness in Q3. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2023.

Diamond Hill Long-Short Fund highlighted stocks like Bank of Hawaii Corporation (NYSE:BOH) in the third quarter 2023 investor letter. Headquartered in Honolulu, Hawaii, Bank of Hawaii Corporation (NYSE:BOH) is a bank holding company for Bank of Hawaii. On December 21, 2023, Bank of Hawaii Corporation (NYSE:BOH) stock closed at $72.44 per share. One-month return of Bank of Hawaii Corporation (NYSE:BOH) was 30.29%, and its shares lost 5.32% of their value over the last 52 weeks. Bank of Hawaii Corporation (NYSE:BOH) has a market capitalization of $2.88 billion.

Diamond Hill Long-Short Fund made the following comment about Bank of Hawaii Corporation (NYSE:BOH) in its Q3 2023 investor letter:

“We also initiated short positions in Mueller Industries, Bank of Hawaii Corporation (NYSE:BOH), Alarm.com Holdings and Garmin in Q3. We reinitiated a short position in Bank of Hawaii given the fair value risk in its securities portfolio, as well as its thin capital level — a combination we anticipate will constrain the bank’s ability to grow earnings or return capital to shareholders in the period ahead.”

A financial advisor discussing options with a client in a home loan consultation.

Bank of Hawaii Corporation (NYSE:BOH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Bank of Hawaii Corporation (NYSE:BOH) at the end of third quarter which was 15 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 20 Most Valuable Chinese Companies
• 25 Cities Where Home Prices Are Falling Now
• 30 Most Fun Cities in the US

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