Reasons for the Strong Performance of Jackson Financial (JXN) in Q1

Miller Value Partners, an investment management company, released its “Income Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy returned -3.51% net of fees compared to a 3.72 % return for the ICE Bank of America High Yield Index and 7.50% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Miller Value Partners Income Strategy highlighted stocks like Jackson Financial Inc. (NYSE:JXN) in the first quarter 2023 investor letter. Headquartered in Lansing, Michigan, Jackson Financial Inc. (NYSE:JXN) is an investment holding company that operates through Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks segments. On April 17, 2023, Jackson Financial Inc. (NYSE:JXN) stock closed at $37.14 per share. One-month return of Jackson Financial Inc. (NYSE:JXN) was 5.21%, and its shares lost 14.70% of their value over the last 52 weeks. Jackson Financial Inc. (NYSE:JXN) has a market capitalization of $3.056 billion.

Miller Value Partners Income Strategy made the following comment about Jackson Financial Inc. (NYSE:JXN) in its Q1 2023 investor letter:

“Jackson Financial Inc. (NYSE:JXN) gained after it reported 4Q22 revenues excluding net losses on derivatives and investments of $2.66B, -11.6% Y/Y, and Adjusted Operating EPS of $5.66, compared to 4Q21 EPS of $7.48, ahead of consensus of $5.21. Jackson ended the year in a strong capital position, with a Risk-Based Capital (RBC) ratio of 544% as of year-end 2022, representing a sequential improvement from a 3Q22 RBC ratio of over 500%. The company returned $86MM to shareholders in 4Q22 via $38MM of share repurchases and $48MM in dividends, bringing FY22 capital returns to $482MM, or 15.7% of the company’s market cap. Management increased the 1Q23 dividend by 12.7% to $0.62/share, or an annualized yield of 6.6%, and announced a $450MM increase to the company’s existing share repurchase authorization, as management is targeting FY23 capital returns of $500MM, at the midpoint, or 16.2% of the company’s market cap.”

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Jackson Financial Inc. (NYSE:JXN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Jackson Financial Inc. (NYSE:JXN) at the end of the fourth quarter which was 24 in the previous quarter.

We discussed Jackson Financial Inc. (NYSE:JXN) in another article and shared the list of most profitable mid-cap stocks. 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.