ClearBridge Investments, an investment management company, released its “ClearBridge Large Cap Value Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy underperformed its benchmark, the Russell 1000 Value Index, in the first quarter. On an absolute basis, the strategy gained from 5 of the 11 sectors in which it was invested for the quarter. The information technology (IT) and communication services sectors were the leading contributors while health care and financials sectors detracted. Overall stock selection detracted from the performance on a relative basis while sector allocation was positive. In addition, please check the fund’s top five holdings to know its best picks in 2023.
ClearBridge Large Cap Value Strategy highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the first quarter 2023 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. On July 3, 2023, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $57.72 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was 6.08%, and its shares lost 9.70% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $105.053 billion.
ClearBridge Large Cap Value Strategy made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its first quarter 2023 investor letter:
“The Strategy’s lack of exposure to less diversified banks with more concentrated deposit bases acted defensively during the bank selloff, with our financials holdings performing well on a relative basis versus the benchmark. Our concerns over financials with asset/liability mismatches and those making very long-duration bets led us to reduce our bank exposure in 2022 for example, with trims to The Charles Schwab Corporation (NYSE:SCHW). We trimmed Schwab further in the quarter due to the potential for more regulatory scrutiny and heightened risk of “cash sorting” as customers shift low-yielding deposits into higher-yielding options such as money market funds and U.S. Treasurys. While this impacts the company’s earnings in the near term, roughly 80% of its deposits are FDIC insured and we believe the vast majority of the deposits are likely to stay inside of the Schwab ecosystem where the company can still collect fee and spread income over time.”
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The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of first quarter 2023 which was 74 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared The London Company Large Cap Strategy’s views on the company. 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.
