Should You Retain Your Holdings in SVB Financial Group (SIVB)?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, its Investor Class fund ARTMX returned -1.13%, Advisor Class fund APDMX posted a return of -1.12%, and Institutional Class fund APHMX returned -1.07%, compared to a return of 6.90% for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Artisan Partners highlighted stocks like SVB Financial Group (NASDAQ:SIVB) in the fourth quarter 2022 investor letter. Headquartered in Santa Clara, California, SVB Financial Group (NASDAQ:SIVB) is a financial services company. On January 19, 2023, SVB Financial Group (NASDAQ:SIVB) stock closed at $250.04 per share. One-month return of SVB Financial Group (NASDAQ:SIVB) was 15.31%, and its shares lost 57.02% of their value over the last 52 weeks. SVB Financial Group (NASDAQ:SIVB) has a market capitalization of $14.778 billion.

Artisan Partners made the following comment about SVB Financial Group (NASDAQ:SIVB) in its Q4 2022 investor letter:

“SVB Financial Group (NASDAQ:SIVB) is a leading provider of banking services to the innovation economy. Headquartered in Silicon Valley, SVB offers financial products to clients in the technology, life science/health care and private equity/venture capital end markets. The rapid shift in the funding and interest rate environment is having a significant nearterm impact on its business. First, the funding of SVB’s clients has slowed, while at the same time spending levels at those clients has increased. This funding dynamic, along with rapidly rising interest rates, has resulted in net interest margin compression. Given our comfort with the company’s credit risk exposure (loans to early-stage tech companies are only 2% of SVB’s loan book versus 11% in 2008 and 30% in the dot.com era) and our belief that its margin pressures are short term in nature, we consider our longer term thesis still intact and have therefore remained invested with a modest position.”

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SVB Financial Group (NASDAQ:SIVB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held SVB Financial Group (NASDAQ:SIVB) at the end of the third quarter, which was 31 in the previous quarter.

We discussed SVB Financial Group (NASDAQ:SIVB) in another article and shared Carillon Tower Advisers’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.