Fiduciary Management Inc. (FMI), an independent money management firm, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. A global banking crisis and severe financial market volatility affected the market in the first quarter of 2023. The FMI Large Cap Strategy gained 4.0% (net) in the first quarter compared to a 7.50% increase in the S&P 500 Index and a 0.93% gain in the iShares Russell 1000 Value ETF. The FMI Small Cap Strategy gained 7.6% (net) compared to a 2.74% gain in the Russell 2000 Index and a 0.66% decline in the Russell 2000 Value Index in the same period. The FMI All Cap Equity gained 5.1% (net) compared to 7.07% for the iShares Russell 3000 ETF and the FMI International Strategies gained 9.8% (net) on a currency-hedged basis and 10.6% (net) on a currency unhedged basis in the initial quarter of 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.
FMI highlighted stocks like Lloyds Banking Group plc (NYSE:LYG) in the first quarter 2023 investor letter. Headquartered in London, the United Kingdom, Lloyds Banking Group plc (NYSE:LYG) provides banking and financial services. On April 11, 2023, Lloyds Banking Group plc (NYSE:LYG) stock closed at $2.4300 per share. One-month return of Lloyds Banking Group plc (NYSE:LYG) was 9.46%, and its shares gained 5.65% of their value over the last 52 weeks. Lloyds Banking Group plc (NYSE:LYG) has a market capitalization of $41.223 billion.
FMI made the following comment about Lloyds Banking Group plc (NYSE:LYG) in its Q1 2023 investor letter:
“We own two banks in the International portfolios – Lloyds Banking Group plc (NYSE:LYG) and DBS Group. They share some important characteristics that set them apart from most international banks. To start, both operate in countries with a favorable market structure. Lloyds is the market leader in the UK, and DBS is the market leader in Singapore. The UK and Singapore have relatively consolidated banking markets with strong rule of law. Lloyds and DBS both have superior deposit franchises and digital capabilities. Their deposit market share is over 20%. To put this in perspective, J.P. Morgan (the largest bank in the U.S.) has a deposit market share of around 11%. They have healthy capital ratios and ample liquidity. As opposed to the failed U.S. banks, the balance sheet values of their securities portfolios approximate fair value. Finally, both have management teams that think and act like shareholders. The combination of these attributes makes these banks compelling investment opportunities in what is an otherwise difficult industry.”
nick-pampoukidis-t-UV1rZqPuY-unsplash
Lloyds Banking Group plc (NYSE:LYG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Lloyds Banking Group plc (NYSE:LYG) at the end of the fourth quarter which was 8 in the previous quarter.
We discussed Lloyds Banking Group plc (NYSE:LYG) in another article and shared the list of cheapest penny stocks to buy according to 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.
Suggested Articles:
- 15 Cheap Caribbean Vacations All-Inclusive
- Top 20 Natural Gas-Producing Countries in the World
- 30 Best Places to Live in the U.S. for the Weather
Disclosure: None. This article is originally published at Insider Monkey.
