Should You Hold Truist Financial Corporation (TFC)?

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy underperformed and returned -0.75% (net) compared to a 7.46% return for the Russell 1000 Index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.

Diamond Hill Large Cap Strategy highlighted stocks like Truist Financial Corporation (NYSE:TFC) in the first quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Truist Financial Corporation (NYSE:TFC) is a holding company that provides banking and trust services. On May 11, 2023, Truist Financial Corporation (NYSE:TFC) stock closed at $26.83 per share. One-month return of Truist Financial Corporation (NYSE:TFC) was -20.72%, and its shares lost 42.26% of their value over the last 52 weeks. Truist Financial Corporation (NYSE:TFC) has a market capitalization of $36.632 billion.

Diamond Hill Large Cap Strategy made the following comment about Truist Financial Corporation (NYSE:TFC) in its Q1 2023 investor letter:

“Another one of our bank holdings, Truist Financial Corporation (NYSE:TFC), was also under pressure during this time. Truist, while not considered a “money center,” is a large, super-regional bank with an attractive Southeastern US footprint that has added value to the communities it serves via its extensive branch network and lending franchises. Truist also owns the fifth largest insurance brokerage in the US, which it recently sold a portion of for roughly $3 billion. While the company has meaningful unrealized losses in its securities portfolio, it also has other assets on the balance sheet that we believe are undervalued. Truist has a smaller percent of uninsured deposits (46%) relative to some of the regional banks that have come under the most pressure, and we believe it has a relatively stickier deposit base. Weighing all of this, we are comfortable with our current position in Truist and believe there is a significant amount of pessimism baked into its current share price.”

nick-pampoukidis-t-UV1rZqPuY-unsplash

Truist Financial Corporation (NYSE:TFC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Truist Financial Corporation (NYSE:TFC) at the end of the fourth quarter which was 39 in the previous quarter.

We discussed Truist Financial Corporation (NYSE:TFC) in another article and shared Matrix Asset Advisors’ views on the company. 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:

• Top 20 Ballet Companies in the World
• 15 Biggest Potato Chip Brands and Companies in the World
• 10 Best Gold Royalty Stocks to Buy Now

Disclosure: None. This article is originally published at Insider Monkey.