Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 10.9% in the first quarter compared to a 7.5% return for the S&P 500 Index. The fund outperformed both general market and value indexes in the quarter. Communication services and information technology were the largest contributing sectors in the quarter, while energy and real estate detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Oakmark Select Fund highlighted stocks like First Citizens BancShares, Inc. (NASDAQ:FCNCA) in the first quarter 2023 investor letter. Headquartered in Raleigh, North Carolina, First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a holding company that provides retail and commercial banking services. On April 10, 2023, First Citizens BancShares, Inc. (NASDAQ:FCNCA) stock closed at $993.73 per share. One-month return of First Citizens BancShares, Inc. (NASDAQ:FCNCA) was 75.63%, and its shares gained 57.13% of their value over the last 52 weeks. First Citizens BancShares, Inc. (NASDAQ:FCNCA) has a market capitalization of $14.286 billion.
Oakmark Select Fund made the following comment about First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q1 2023 investor letter:
“At Oakmark, we often talk about how aligning with great management teams stacks the deck in our favor, frequently leading to positive surprises that we can’t precisely envision when we first invest. Our investment in First Citizens BancShares, Inc. (NASDAQ:FCNCA) is one such example. We initially purchased shares in First Citizens in the first quarter of 2021 after we came to appreciate the quality of the franchise and management team. Over the subsequent years, our estimate of intrinsic value increased, but the stock price did not keep up with the growth in intrinsic value. The disconnect widened further this quarter as the Silicon Valley Bank crisis unfolded. As a result, we added to our position.
As long-term value investors, we are used to deferred gratification – but, in this case, our decision was quickly rewarded. Not only did First Citizens avoid most of the mistakes made by the troubled banks, but it took advantage of the crisis by striking a deal to buy the majority of Silicon Valley’s assets and liabilities from the FDIC just as the quarter came to a close. We believe this transaction added hundreds of dollars per share to the intrinsic value of the business in one fell swoop, the equivalent of many years of business value growth under more normal conditions. Stepping back, First Citizens has many of the attributes we look for in an investment, including high stock ownership by management, recent insider purchases and – particularly relevant in the current environment – trust from regulators. These positive attributes can be harder to quantify than the typical financial metrics, but, in our view, they are no less important.”
damir-spanic-vwaTtIhCjVg-unsplash
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held First Citizens BancShares, Inc. (NASDAQ:FCNCA) at the end of the fourth quarter which was 34 in the previous quarter.
We discussed First Citizens BancShares, Inc. (NASDAQ:FCNCA) in another article and shared the list of high growth large cap stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 32 Best Cities for Young People
- The 15 Best Selling Products Online
- 10 Cheap Social Media Stocks to Buy
Disclosure: None. This article is originally published at Insider Monkey.
