Is it Great to Invest in Live Oak Bancshares (LOB)?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, adding to full-year outperformance. Relative performance was aided by our below-benchmark health care exposure, particularly its lack of exposure to biotechnology stocks which were down nearly 13% in the quarter and represent almost half the sector’s weight Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Diamond Hill Small Cap Fund, in its Q4 2021 investor letter, mentioned Live Oak Bancshares, Inc. (NASDAQ: LOB) and discussed its stance on the firm. Live Oak Bancshares, Inc. is a Wilmington, North Carolina-based bank holding company with a $2.7 billion market capitalization. LOB delivered a -27.06% return since the beginning of the year, while its 12-month returns are up by 15.53%. The stock closed at $63.67 per share on February 25, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Live Oak Bancshares, Inc. in its Q4 2021 investor letter:

“Other top contributors included regional bank Live Oak Bancshares. Live Oak’s solid fundamental performance has been aided by its loan growth outpacing the industry and abating headwinds from the paycheck protection program (PPP).”

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Our calculations show that Live Oak Bancshares, Inc. (NASDAQ: LOB) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. LOB was in 16 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 10 funds in the previous quarter. Live Oak Bancshares, Inc. (NASDAQ: LOB) delivered a -30.70% return in the past 3 months.

In November 2021, we published an article that includes LOB in the Top 5 Stock Picks of Anton Schutz’s Mendon Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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