Investment management company LVS Advisory, a New York City-based full-service investment firm, recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The defensive portfolio of the fund gained 2.9% in the quarter. Year-to-date, the portfolio gained 3.3% compared to an 18.5% decline for the Barclays High-Yield Bond Index. In comparison, the Growth Portfolio was down 5.5%. The portfolio underperformed the S&P 500 Index in 2022 and declined 36.4% year to date. For more information on the fund’s top picks in 2022, please check its top five holdings.
LVS Advisory highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the Q3 2022 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a financial services company. On November 10, 2022, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $78.56 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was 13.89% and its shares lost 4.32% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $146.651 billion.
LVS Advisory made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2022 investor letter:
“We purchased shares of The Charles Schwab Corporation (NYSE:SCHW) around the same time as Interactive Brokers. The investment thesis is similar. Schwab benefits from higher interest rates as it collects income earned from client cash. While IBKR mostly serves retail investors, Schwab has a greater emphasis on wealth advisors and corporate retirement plans. B2B channels are sticker than retail traders and give Schwab pricing power to collect a greater portion of the interest earned than IBKR. Schwab is a more mature business and has fewer reinvestment opportunities than IBKR (which is why I prefer IBKR on the margin); however, Schwab has authorized a massive $15 billion share buyback program (!) representing over 10% of the company’s market cap at the time of announcement. Given that Schwab trades for a mid-teens price-to-earnings multiple and has a low cost of capital, the share buyback should be highly accretive. The combined tailwind from higher interest rates and the buyback program will lead to attractive earnings per share growth over the coming years.”
Jonathan Weiss/Shutterstock.com
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held by The Charles Schwab Corporation (NYSE:SCHW) at the end of the second quarter, which was 78 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared the biggest finance companies by market cap. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 12 Best Beauty Stocks To Buy Now
- Top 10 Real Estate Stocks To Buy
- 12 Best Kid-Friendly Stocks To Buy
Disclosure: None. This article is originally published at Insider Monkey.
