Diamond Hill Capital Believes Live Oak (LOB) will Sustain its Long-Term Competitive Advantage

Diamond Hill Capital Management, an investment advisor, released its “Small Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The second quarter was challenging for US stocks and the Russell 2000 Index fell by more than 17%. The volatile market condition affected the fund’s portfolio performance; however, the fund performed better compared to the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Diamond Hill Capital Management discussed stocks like Live Oak Bancshares, Inc. (NASDAQ:LOB). Headquartered in Wilmington, North Carolina, Live Oak Bancshares, Inc. (NASDAQ:LOB) is a bank holding company. On September 2, 2022, Live Oak Bancshares, Inc. (NASDAQ:LOB) stock closed at $33.84 per share. One-month return of Live Oak Bancshares, Inc. (NASDAQ:LOB) was -11.48% and its shares lost 43.42% of their value over the last 52 weeks. Live Oak Bancshares, Inc. (NASDAQ:LOB) has a market capitalization of $1.493 billion.

Here is what Diamond Hill Capital Management specifically said about Live Oak Bancshares, Inc. (NASDAQ:LOB):

“Other bottom contributors included regional banks Webster Financial and Live Oak Bancshares, Inc. (NASDAQ:LOB) — both traded down alongside the banking industry on rising expectations for recession. Live Oak is also experiencing net interest margin pressure from rising deposit costs. However, we maintain our conviction in the long-term competitive positioning of our differentiated bank holdings.”

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Live Oak Bancshares, Inc. (NASDAQ:LOB) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Live Oak Bancshares, Inc. (NASDAQ:LOB) was held by 17 hedge fund portfolios at the end of the second quarter compared to 24 in the previous quarter.

We discussed Live Oak Bancshares, Inc. (NASDAQ:LOB) in another article and shared Diamond Hill Capital’s views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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