Here’s Why Diamond Hill Capital Likes First Republic Bank (FRC)

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Mid Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market quarter overall, Diamond Hill Mid Cap Fund’s negative returns still outpaced the Russell Midcap Index by a healthy margin in Q1. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Mid Cap Fund mentioned First Republic Bank (NYSE:FRC) and explained its insights for the company. Founded in 1985, First Republic Bank (NYSE:FRC) is a San Francisco, California-based full-service bank and wealth management company with a $26.6 billion market capitalization. First Republic Bank (NYSE:FRC) delivered a -28.16% return since the beginning of the year, while its 12-month returns are down by -24.75%. The stock closed at $148.35 per share on July 13, 2022. 

Here is what Diamond Hill Mid Cap Fund has to say about First Republic Bank (NYSE:FRC) in its Q1 2022 investor letter:

“First Republic Bank also traded down in sympathy with financials but additionally suffered from uncertainty in the executive suite. The founder went on medical leave, only to have his co-CEO leave the company. Ultimately, the founder returned and a new, permanent CEO was announced. We continue to like this bank, as they have distinguished themselves with specialized niches and strong geographic footprints, and they have demonstrated their ability to compound returns and grow intrinsic value over time.”

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Our calculations show that First Republic Bank (NYSE:FRC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. First Republic Bank (NYSE:FRC) was in 40 hedge fund portfolios at the end of the first quarter of 2022, compared to 39 funds in the previous quarter. First Republic Bank (NYSE:FRC) delivered a -10.52% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on First Republic Bank (NYSE:FRC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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