Fiduciary Management Inc. (FMI), an independent money management firm, released its first quarter 2024 investor letter. A copy of the same can be downloaded here. The first quarter of this year saw the continuation of last year’s stock market momentum, with growth stocks leading the way across market capitalization and geographical areas. The Small Cap Strategy rose 9.2% (gross) / 9.0% (net), in the quarter compared to 5.18% and 2.90% for the Russell 2000 Index and Russell 2000 Value Index. FMI Large Cap Strategy gained 8.7% (gross) / 8.6% (net) compared with 10.56% and 8.86% for the S&P 500 and iShares Russell 1000 Value ETF, respectively. The FMI All Cap Equity advanced 7.4% (gross) / 7.3% (net), compared with 9.89% for the iShares Russell 3000 ETF. Finally, the FMI International Strategies gained 5.8% (gross) / 5.7% (net) on a currency-hedged basis and 3.6% (gross) / 3.4% (net) on a currency-unhedged basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Fiduciary Management featured stocks like The Charles Schwab Corporation (NYSE:SCHW) in the first quarter 2024 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. On April 16, 2024, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $73.07 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was 4.88%, and its shares gained 31.54% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $ 133.495 billion.
Fiduciary Management stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its first quarter 2024 investor letter:
“We last wrote about The Charles Schwab Corporation (NYSE:SCHW) a year ago in the midst of the banking crisis. At the time, the worst fears were a bank run and/ or balance sheet impairment. Positively, these did not come to pass. As a refresh of our interest in the business, Charles Schwab is a leading discount broker. The business benefits from long run market appreciation and Schwab’s better mousetrap has allowed it to gain share on top of market growth, which has driven long run revenue growth of 10%. The competitive advantage comes from shared economies of scale, whereby Schwab lowers costs to the customer, thereby attracting new assets which then lets them lower costs even more to the customer. The rapid rise in interest rates that precipitated the banking crisis contributed to a challenging last 18 months for Schwab, as clients moved bank cash to higher yielding instruments. This led to a significant, albeit short-term, earnings headwind. As we move into 2024, we believe the worst is behind them. We expect Schwab will experience strong earnings growth for the next few years, driven by accelerating revenue growth and renewed expense discipline. Despite this attractive outlook, Schwab trades for 21 times trough earnings and only 14 times our estimate of normalized earnings.”
Photo by Brendan Church on Unsplash
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The Charles Schwab Corporation (NYSE:SCHW) was held by 81 hedge fund portfolios, up from 77 in the previous quarter, according to our database.
We previously discussed The Charles Schwab Corporation (NYSE:SCHW) in another article, where we shared the list of stocks billionaire investor Stan Druckenmiller and insiders are piling into. In addition, please check out our hedge fund investor letters Q1 2024 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.
