Broyhill Asset Management, a boutique investment firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the portfolio increased 0.9% net of all fees and expenses, and year-to-date, the portfolio returned 12.3% net of all fees and expenses. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Broyhill Asset Management highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the second quarter 2023 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. On August 4, 2023, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $64.92 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was 14.32%, and its shares lost 6.33% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $118.157 billion.
Broyhill Asset Management made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its second quarter 2023 investor letter:
“After the failure of Silicon Valley Bank (SVB), the market turned a critical eye to the financial sector. Institutional investors sharpened their forensic accounting pencils and hypothesized, “What would happen to The Charles Schwab Corporation (NYSE:SCHW) should its depositors take their money and run?” While this is a helpful exercise, we believe the probability of a run on Schwab Bank is low. Schwab is not SVB. Its deposit base is sticky and fragmented; Silicon Valley’s was not. Less than 10% of SVB’s deposit base was under the FDIC insurance limit, and its core customers were rate-sensitive startups and venture capitalists with fickle cash needs. In contrast, ~80% of Schwab’s deposit base is under the FDIC’s limit and spread across millions of brokerage accounts that keep cash on hand for investment. Rather than spending our time replicating doomsday scenarios, we began by estimating the risk to Schwab’s earnings power should it need to raise the rate paid on deposits in line with competitors. Even under this scenario, we believe our downside is limited. Longer term, we believe Schwab has multiple levers it can pull to monetize the ~ $7 trillion in assets trusted in its custody.”
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. As per our database, 87 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of first quarter which was 74 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared the list of best bargain stocks to buy in August. 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.
