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 First Citizens BancShares, Inc. (NASDAQ:FCNCA) in the first quarter 2023 investor letter. Headquartered in Raleigh, North Carolina, First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a bank holding company that provides retail and commercial banking services. On June 28, 2023, First Citizens BancShares, Inc. (NASDAQ:FCNCA) stock closed at $1,225.28 per share. One-month return of First Citizens BancShares, Inc. (NASDAQ:FCNCA) was -3.51%, and its shares gained 87.41% of their value over the last 52 weeks. First Citizens BancShares, Inc. (NASDAQ:FCNCA) has a market capitalization of $17.63 billion.
Bronte Amalthea Fund made the following comment about First Citizens BancShares, Inc. (NASDAQ:FCNCA) 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, which has purchased Credit Suisse under advantageous terms, and First Citizens BancShares, Inc. (NASDAQ:FCNCA), which purchased much of Silicon Valley Bank on even more advantageous terms.
The post-bankruptcy period surprised us because Silicon Valley Bank seemed to have trouble finding a buyer. Our guess is that JP Morgan would have liked to buy it but was prohibited by anti-trust concerns. The loan book and deposit liabilities were transferred with some funding guarantees to First Citizens Bank at a 16-billion-dollar discount. That discount is larger than the market cap of First Citizens. And we think the loans are likely good and First Citizens has an astonishing deal.
We could be wrong on this. We had a very rosy view of Silicon Valley Bank before its failure and that view might be wrong. The loans may be bad. But if Silicon Valley Bank was anything like as good as our preconceptions, then First Citizens is a very cheap stock indeed.”
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First Citizens BancShares, Inc. (NASDAQ:FCNCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held First Citizens BancShares, Inc. (NASDAQ:FCNCA) at the end of first quarter 2023 which was 35 in the previous quarter.
We discussed First Citizens BancShares, Inc. (NASDAQ:FCNCA) in another article and shared Silver Beech Capital’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.
