Here’s Why Bronte Amalthea Fund Opened a Position in UBS Group AG (UBS)

Bronte Capital, an investment management company, released its “Amalthea Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 4.92% in March compared to a 3.90% gain for the MSCI ACWI (in $A). In the quarter, Amalthea Fund gained 7.55% versus a 9.23% gain for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Bronte Amalthea Fund highlighted stocks like UBS Group AG (NYSE:UBS) in the first quarter 2023 investor letter. Based in Zurich, Switzerland, UBS Group AG (NYSE:UBS) provides financial management solutions. On June 28, 2023, UBS Group AG (NYSE:UBS) stock closed at $19.83 per share. One-month return of UBS Group AG (NYSE:UBS) was 1.59%, and its shares gained 22.26% of their value over the last 52 weeks. UBS Group AG (NYSE:UBS) has a market capitalization of $64.19 billion.

Bronte Amalthea Fund made the following comment about UBS Group AG (NYSE:UBS) in its first quarter 2023 investor letter:

“The biggest thing that happened in markets in the quarter was the collapse of three banks:—Credit Suisse, Silicon Valley Bank and Signature Bank. We have held short positions in each of these banks, but we traded them poorly and profits were smaller than they could have been.

We have also purchased the successor banks for two of them. We initiated positions in UBS Group AG (NYSE:UBS), which has purchased Credit Suisse under advantageous terms, and First Citizens Bank, which purchased much of Silicon Valley Bank on even more advantageous terms.

We will go through each of these banks in turn as they are (a) interesting in their own right and (b) have resulted in some changes in our portfolio.

Swiss banks were sharply weakened by the end of banking secrecy. Historically, Switzerland was a clean place to hide your dirty money and Swiss Banking was almost synonymous with tax avoidance.…” (Click here to read the full text)

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UBS Group AG (NYSE:UBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held UBS Group AG (NYSE:UBS) at the end of the first quarter 2023 which was 16 in the previous quarter.

We discussed UBS Group AG (NYSE:UBS) in another article and shared the list of largest banks based on their assets. 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.