Appleseed Fund, an investment management company released its first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund’s Investor Class returned 5.42% over the six months that ended March 31, 2023, and outperformed the Morningstar Global Small/Midcap Index, which generated a 3.57% return. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Appleseed Fund highlighted stocks like Synovus Financial Corp. (NYSE:SNV) in the first quarter 2023 investor letter. Headquartered in Columbus, Georgia, Synovus Financial Corp. (NYSE:SNV) is a bank holding company. On May 30, 2023, Synovus Financial Corp. (NYSE:SNV) stock closed at $28.16 per share. One-month return of Synovus Financial Corp. (NYSE:SNV) was -4.68%, and its shares lost 36.39% of their value over the last 52 weeks. Synovus Financial Corp. (NYSE:SNV) has a market capitalization of $3.895 billion.
Appleseed Fund made the following comment about Synovus Financial Corp. (NYSE:SNV) in its Q1 2023 investor letter:
“During the most recent quarter, Appleseed Fund added three new equity holdings: Medtronic (MDT), Stanley Black & Decker (SWK), and Synovus Financial Corp. (NYSE:SNV). In February 2023, Appleseed Fund took a position in Synovus, a Georgia-based regional bank; retrospective vision being 20/20, our timing with this initial purchase was poor. Synovus’ business performed admirably in 2022 with an expanding net interest margin, achievement of its annual cost and revenue benefits from its 2020 restructuring program, improved non-performing loans, and accelerating loan growth. The business clearly was performing well, and the stock market had not given the Company much credit when we took a partial position earlier this year at attractive valuations.
Indeed, the banking crisis that began the next month wiped out several well-respected regional banks (e.g., Silicon Valley Bank, Signature Bank) and a global bank (e.g., Credit Suisse). The instability in the financial services sector caused investors to throw the baby (Synovus) out with the bath water, despite the attractive economics and compelling valuation associated with Synovus. Today, we believe Synovus to be well capitalized and with strong risk controls. At current levels, we think the risk/return characteristics of this business are that much more attractive, but the entry point on this investment has thus far proved to be early and a little painful.”
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Synovus Financial Corp. (NYSE:SNV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Synovus Financial Corp. (NYSE:SNV) at the end of first quarter 2023 which was 35 in the previous quarter.
We discussed Synovus Financial Corp. (NYSE:SNV) in another article and shared the list of stocks whose price targets were recently raised by analysts. In addition, please check out our hedge fund investor letters Q1 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.
