Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 4.17% net compared to a 5.23% return for the Russell 2500 Index. Furthermore, the fund underperformed its secondary benchmark, the Russell 2500 Value Index, which returned 4.37% during the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Meridian Contrarian Fund highlighted stocks like First Citizens BancShares, Inc. (NASDAQ:FCNCA) in the second quarter 2023 investor letter. Headquartered in Raleigh, North Carolina, First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a bank holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services. On October 4, 2023, First Citizens BancShares, Inc. (NASDAQ:FCNCA) stock closed at $1,330.98 per share. One-month return of First Citizens BancShares, Inc. (NASDAQ:FCNCA) was 0.54%, and its shares gained 57.80% of their value over the last 52 weeks. First Citizens BancShares, Inc. (NASDAQ:FCNCA) has a market capitalization of $19.129 billion.
Meridian Contrarian Fund made the following comment about First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q2 2023 investor letter:
“First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a regional bank located in the southeast U.S. with strong legacy relationships and a history of acquiring troubled bank assets at advantageous valuations and folding them into its strong foundation. The company has acquired 16 banks in FDIC receivership since 2009. Its deal to purchase national lender CIT, which was announced in late 2020, diminished earnings through late 2021 and early 2022 as the company tempered its capital use while regulators reviewed and ultimately approved the deal.
This scenario allowed us to initiate a position in the stock at a relatively inexpensive valuation. Our analysis indicated that First Citizens’ long track record of consistent earnings growth due to its focus on relationship lending and conservative underwriting has led to above-peer returns on equity. During the quarter, First Citizens posted strong results due in part to its March acquisition of the assets of Silicon Valley Bank, which doubled the book value of First Citizens when the deal closed. Going forward, we believe the benefits realized from that advantageous deal, along with management’s conservative risk management and the firm’s strong capital position, will enable the company to grow earnings and return capital to shareholders for several years. In keeping with our risk management framework, we reduced our exposure after the stock’s strong performance, although it remains a top position in the portfolio.”
An experienced banker offering financial advice to a young couple. Editorial photo for a financial news article. 8k. –ar 16:9
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held First Citizens BancShares, Inc. (NASDAQ:FCNCA) at the end of second quarter which was 48 in the previous quarter.
We discussed First Citizens BancShares, Inc. (NASDAQ:FCNCA) in another article and shared the list of best bank stocks to buy for long-term. 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.
