Broyhill Asset Management, a boutique investment firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the portfolio increased 0.9% net of all fees and expenses, and year-to-date, the portfolio returned 12.3% net of all fees and expenses. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Broyhill Asset Management highlighted stocks like First Horizon Corporation (NYSE:FHN) in the second quarter 2023 investor letter. Headquartered in Memphis, Tennessee, First Horizon Corporation (NYSE:FHN) is the bank holding company for First Horizon Bank. On August 4, 2023, First Horizon Corporation (NYSE:FHN) stock closed at $13.41 per share. One-month return of First Horizon Corporation (NYSE:FHN) was 13.36%, and its shares lost 41.70% of their value over the last 52 weeks. First Horizon Corporation (NYSE:FHN) has a market capitalization of $7.496 billion.
Broyhill Asset Management made the following comment about First Horizon Corporation (NYSE:FHN) in its second quarter 2023 investor letter:
“The largest detractors to performance over the quarter were First Horizon Corporation (NYSE:FHN), Anheuser-Busch InBev (BUD), and Bayer (BAYRY). In February 2022, Toronto-Dominion Bank (TD) offered $25 per share to acquire First Horizon Bank (FHN). A year later, the banks pushed the closing date back to allow more time for regulatory approval, a move good for a 20% decline in the stock. Weeks later, FHN fell another ~30% with the collapse of Silicon Valley Bank. We initiated our position in the heat of the crisis. With the stock already down in concert with banking peers, we believed the downside was limited and that the odds of TD walking away from the deal were even smaller, as the Canadian bank had its eyes on FHN and its southeastern footprint for years. We were wrong on both counts, as regulators made it clear they would not sign off on the deal, and shares fell well below our estimated downside as arbs blew out of the stock. We still believed the bank was undervalued, considering the increased tangible book value complements of a hefty break fee. However, we fully exited the position given continued uncertainty around the regional banking system and the likelihood of decreased normalized earnings power due to pending changes to capital requirements.”
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First Horizon Corporation (NYSE:FHN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held First Horizon Corporation (NYSE:FHN) at the end of first quarter which was 49 in the previous quarter.
We discussed First Horizon Corporation (NYSE:FHN) in another article and shared the list of best stocks under $15. In addition, please check out our hedge fund investor letters Q2 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.
