Should You be Optimistic about Southside Bancshares (SBSI)’s Strong Balance Sheet?

Third Avenue Management, an investment management company based in New York City, released its “Small-Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. Unlike the volatile first quarter, there was a methodological increase in returns in the second quarter. The fund returned 2.98% in Q2 compared to a 3.18% return for the Russell 2000 Value Index. For the first half of 2023, the fund returned 7.27% compared to 2.50% for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Third Avenue Small-Cap Value Fund highlighted stocks like Southside Bancshares, Inc. (NASDAQ:SBSI) in the second quarter 2023 investor letter. Headquartered in Tyler, Texas, Southside Bancshares, Inc. (NASDAQ:SBSI) is a bank holding company for Southside Bank. On July 31, 2023, Southside Bancshares, Inc. (NASDAQ:SBSI) stock closed at $33.21 per share. One-month return of Southside Bancshares, Inc. (NASDAQ:SBSI) was 23.53%, and its shares lost 17.01% of their value over the last 52 weeks. Southside Bancshares, Inc. (NASDAQ:SBSI) has a market capitalization of $1.026 billion.

Third Avenue Small-Cap Value Fund made the following comment about Southside Bancshares, Inc. (NASDAQ:SBSI) in its second quarter 2023 investor letter:

“The other two material laggards were banks, Washington Trust and Southside Bancshares, Inc. (NASDAQ:SBSI). Both banks are small (less than $10B in total assets) so should avoid many of the potential regulatory changes that larger banks will likely face. On the other hand, investors are worried about their ability to compete against larger players in a changing environment. As highlighted last quarter, these companies have endured many other cycles and we remain optimistic their strong balance sheets, pristine credit history and long-term oriented corporate cultures will help them manage through current uncertainties.”

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Southside Bancshares, Inc. (NASDAQ:SBSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Southside Bancshares, Inc. (NASDAQ:SBSI) at the end of first quarter which was 11 in the previous quarter. 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.