First Interstate BancSystem (FIBK) is Struggling with the Ongoing Banking Sector Challenges

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter of 2023, markets were positive, and the US stocks rose over 8% (as measured by the Russell 3000 Index). The portfolio outperformed Russell 2000 Index in Q2 and returned 6.34%, bringing the YTD gains to 13.05%. Financial and consumer discretionary holdings were the source of relative strength in the quarter while the relative weakness came from consumer staples holdings and below-benchmark exposure to the information technology sector. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Diamond Hill Small Cap Fund highlighted stocks like First Interstate BancSystem, Inc. (NASDAQ:FIBK) in the second quarter 2023 investor letter. Headquartered in Billings, Montana, First Interstate BancSystem, Inc. (NASDAQ:FIBK) is a bank holding company for First Interstate Ban. On July 31, 2023, First Interstate BancSystem, Inc. (NASDAQ:FIBK) stock closed at $28.73 per share. One-month return of First Interstate BancSystem, Inc. (NASDAQ:FIBK) was 18.77%, and its shares lost 29.50% of their value over the last 52 weeks. First Interstate BancSystem, Inc. (NASDAQ:FIBK) has a market capitalization of $2.999 billion.

Diamond Hill Small Cap Fund made the following comment about First Interstate BancSystem, Inc. (NASDAQ:FIBK) in its second quarter 2023 investor letter:

“Other bottom contributors in Q2 included First Interstate BancSystem, Taseko Mines and WNS (Holdings) Limited. Regional bank First Interstate BancSystem, Inc. (NASDAQ:FIBK) is struggling with the ongoing challenging backdrop for banks and has lowered revenue guidance twice, dampening the market’s confidence in its ability to weather the downturn. “

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First Interstate BancSystem, Inc. (NASDAQ:FIBK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held First Interstate BancSystem, Inc. (NASDAQ:FIBK) at the end of first quarter which was 20 in the previous quarter.

We discussed First Interstate BancSystem, Inc. (NASDAQ:FIBK) in another article and shared Diamond Hill Small Cap Fund’s views on the company in the previous quarter. 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.