Tidefall Capital Management, an investment manager, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned -8.2% in the quarter compared to an 8.7% return for the S&P and a 1.1% return for the TSX. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Tidefall Capital Management highlighted stocks like First Horizon Corporation (NYSE:FHN) in the second quarter 2023 investor letter. Headquartered in Memphis, Tennessee, First Horizon Corporation (NYSE:FHN) is the bank holding company for First Horizon Bank. On July 25, 2023, First Horizon Corporation (NYSE:FHN) stock closed at $12.98 per share. One-month return of First Horizon Corporation (NYSE:FHN) was 16.41%, and its shares lost 42.26% of their value over the last 52 weeks. First Horizon Corporation (NYSE:FHN) has a market capitalization of $7.256 billion.
Tidefall Capital Management made the following comment about First Horizon Corporation (NYSE:FHN) in its second quarter 2023 investor letter:
“Thankfully, there are many old economy, small cap stocks that are trading at attractive valuations. Last quarter we took a small position in First Horizon Bank. Although the stock only has a $6b market capitalization, the name might be familiar to some Canadian investors since it was an acquisition target of TD Bank which agreed to purchase the company in February 2022 at $25 per share.
The rapid rise in interest rates over the past year, reduced the value of long term bonds, creating a massive drop in the equity of some regional banks which led to fears of a bank run because customer accounts are only officially insured to $250,000. The large depositors at the most vulnerable regionals rapidly moved their savings to the larger “too big to fail” national banks. The resulting turmoil saw TD get cold feet and walk away from the acquisition of First Horizon Corporation (NYSE:FHN) (although TD officially blamed it on “regulatory uncertainty”). With the TD deal off, First Horizon stock then crashed alongside the regional bank sector to $10 per share; less than its tangible book value…” (Click here to read the full text)
Photo by Clay Banks on Unsplash
First Horizon Corporation (NYSE:FHN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held First Horizon Corporation (NYSE:FHN) at the end of first quarter which was 49 in the previous quarter.
We discussed First Horizon Corporation (NYSE:FHN) in another article and shared Moon Capital Management’s insights on the company. 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.
