Is The Charles Schwab Corp. (SCHW) a Good Long-Term Investment Option?

RiverPark Funds, an investment management company, released its “RiverPark Large Growth Fund” third quarter 2022 investor letter — a copy of which can be downloaded here. For the quarter, the RiverPark Large Growth Fund (the “Fund”) lost 3.3% – a bit better than the S&P 500 (-4.9% for the quarter) and about in line with the Russell 1000 Growth index (-3.6% for the quarter). Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, RiverPark Large Growth Fund mentioned The Charles Schwab Corporation (NYSE:SCHW) and explained its insights for the company. Founded in 1971, The Charles Schwab Corporation (NYSE:SCHW) is a Westlake, Texas-based multinational financial services company with a $134.1 billion market capitalization. The Charles Schwab Corporation (NYSE:SCHW) delivered a -13.84% return since the beginning of the year, while its 12-month returns are down by -12.76%. The stock closed at $72.46 per share on October 25, 2022.

Here is what RiverPark Large Growth Fund has to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2022 investor letter:

“SCHW reported solid 2Q business metrics in July, with revenue up 13% year over year, and net income up 42% year over year. Schwab and TD Ameritrade (which Schwab acquired in October 2020) have been the leading share gainers in the discount brokerage industry over the last decade, with both generating substantial organic asset growth while also growing operating margins and remaining amongst the price leaders on all products. With these two businesses now combined, revenue and expense synergies should accelerate in 2023, and we believe the company will be in an even stronger position to gather assets and drive long-term margins and free cash flow in the years to come. Moreover, the combination of steadily rising short-term rates (which should benefit net interest income), plus acquisition synergies from the AMTD deal, gives us confidence that SCHW is poised to generate continued double-digit earnings growth for the foreseeable future.”

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Our calculations show that The Charles Schwab Corporation (NYSE:SCHW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Charles Schwab Corporation (NYSE:SCHW) was in 68 hedge fund portfolios at the end of the second quarter of 2022, compared to 78 funds in the previous quarter. The Charles Schwab Corporation (NYSE:SCHW) delivered a 18.46% return in the past 3 months.

In October 2022, we also shared another hedge fund’s views on The Charles Schwab Corporation (NYSE:SCHW) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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