Should You Add JPMorgan (JPM) to Your Portfolio?

Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy had a strong performance in the second quarter, returning 13.31% net of fees compared to the S&P 500’s 8.74% gain. The strategy grew 20.91% over the last year, compared to a 19.59% increase for the market. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Patient Capital Opportunity Equity Strategy highlighted stocks like JPMorgan Chase & Co. (NYSE:JPM) in the second quarter 2023 investor letter. Headquartered in New York, New York, JPMorgan Chase & Co. (NYSE:JPM) is a financial services company. On October 4, 2023, JPMorgan Chase & Co. (NYSE:JPM) stock closed at $143.35 per share. One-month return of JPMorgan Chase & Co. (NYSE:JPM) was -0.99%, and its shares gained 31.59% of their value over the last 52 weeks. JPMorgan Chase & Co. (NYSE:JPM) has a market capitalization of $416.588 billion.

Patient Capital Opportunity Equity Strategy made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its Q2 2023 investor letter:

“Many technicians and quantitative strategists expect growth stocks to continue to outperform. There’s a good shot that’s right but longer term, we remain more optimistic on classic value. People remain enamored with growth investing. Value stocks trade at a discount to historical valuations unlike growth stocks, which trade at a premium. Take two high quality stocks as an example, Costco (“growth”) vs. JPMorgan Chase & Co. (NYSE:JPM) (“value”).

JPMorgan (JPM) has also posted excellent performance. It was profitable even during the financial crisis. Since Jamie Dimon took the reins in 2005, it’s grown earnings per share 11% per year (almost exactly the same rate as Costco over the same period). The stock’s annualized gains of roughly the same rate. Its P/E ratio has fallen from 12x in 2005 to 10x today. It guides for a normalized 17% return on tangible capital but earned 23% in the most recent quarter…” (Click here to read the full text)

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JPMorgan Chase & Co. (NYSE:JPM) is in 19th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held JPMorgan Chase & Co. (NYSE:JPM) at the end of second quarter which was 112 in the previous quarter.

We discussed JPMorgan Chase & Co. (NYSE:JPM) in another article and shared the list of best bank stocks to buy for long-term. In addition, please check out our hedge fund investor letters Q2 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.