Blue Tower Asset Management, an investment Management Company, released its first quarter, 2023 investor letter. A copy of the same can be downloaded here. In the quarter, the Blue Tower Global Value returned 14.10% net of fees (14.40% gross). Recovery of the prices of Sberbank and Meta Platforms holdings led to the outperformance of the fund in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Blue Tower Asset Management highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the first quarter 2023 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. On June 29, 2023, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $57.14 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was 5.09%, and its shares lost 10.61% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $103.997 billion.
Blue Tower Asset Management made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its first quarter 2023 investor letter:
“We previously wrote about our investment thesis for The Charles Schwab Corporation (NYSE:SCHW) in our Q1 2019 letter. We later sold our position in 2020 in order to free up capital for other opportunities that became available during the chaos of the Covid crash. Now the panic over the current banking crisis has created an opportunity to reenter this investment.
Schwab began as one of the first low-cost electronic brokerages in 1971. Over the years, Schwab’s banking division and financial advisor custody services have both grown to be an increasingly large portion of the business.
An equity brokerage business like Schwab is very attractive due to scale providing a barrier to entry. The costs of running a brokerage are largely fixed, so the industry naturally evolved to an oligopoly of a few major players that can all earn attractive returns on capital. Schwab’s bank allows customers to have their banking and brokerage needs integrated under one roof. Charles Schwab Bank has grown to become one of the largest banks in the country, and at the end of 2022 had $126.6B of bank deposits in 1.7M accounts. Schwab acquired T.D. Ameritrade and the investment management business of USAA in 2019 and at the end of 2022 had $7.05T of client assets in 33.8M accounts. Schwab is now the second largest broker in the United States, with only Vanguard holding more assets…” (Click here to read the full text)
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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 2023 which was 74 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared the list of worst performing S&P 500 stocks in 2023. In addition, please check out our hedge fund investor letters Q1 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.
