Oakmark Funds, advised by Harris Associates, released its “Oakmark Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 8.1% in the first quarter compared to a 7.5% return for the S&P 500 Index. The firm is happy to have the capital compounded at 12% per annum for the past decade. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Fund highlighted stocks like Truist Financial Corporation (NYSE:TFC) in the first quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Truist Financial Corporation (NYSE:TFC) is a holding company that offers banking and trust services. On April 11, 2023, Truist Financial Corporation (NYSE:TFC) stock closed at $33.70 per share. One-month return of Truist Financial Corporation (NYSE:TFC) was 4.98%, and its shares lost 35.19% of their value over the last 52 weeks. Truist Financial Corporation (NYSE:TFC) has a market capitalization of $44.758 billion.
Oakmark Fund made the following comment about Truist Financial Corporation (NYSE:TFC) in its Q1 2023 investor letter:
“Truist Financial Corporation (NYSE:TFC) is among the largest regional banks in the U.S. The company has a strong deposit franchise with high local market share, predominantly focused in fast-growing southeastern markets. The company’s share price declined meaningfully this quarter, alongside most bank stocks, as investors grew concerned about mark-to-market losses on its securities portfolio and potential deposit outflows. We believe the company’s reputation, relationships and liquidity profile will allow it to weather this storm without material negative impact. The company’s shares are currently valued at a single-digit multiple of our estimate of normalized earnings power. We believe this is a very attractive price for such a high-quality regional banking franchise that has historically generated a high-teens return on its tangible equity. Furthermore, the company’s capital-light insurance brokerage subsidiary, which contributes little to tangible book value and just 10% of reported earnings, could be worth as much as 35% of the current stock price based on its recently announced minority sale price.”
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Truist Financial Corporation (NYSE:TFC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Truist Financial Corporation (NYSE:TFC) at the end of the fourth quarter which was 39 in the previous quarter.
We discussed Truist Financial Corporation (NYSE:TFC) in another article and shared the list of most promising dividend stocks according to analysts. 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.
