Vltava Fund, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. In its Q3 2022 investor letter, the fund mentioned that investors may have different expectations concerning inflation, interest rates, or economic growth, but, at the end of the day, what we buy will determine the portfolio’s return (and its risk). The fund also said that the need for capital investment over the long term has been, and will likely remain, higher than it anticipated. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Vltava Fund mentioned JPMorgan Chase & Co. (NYSE:JPM) and explained its insights for the company. Founded in 2000, JPMorgan Chase & Co. (NYSE:JPM) is a New York, New York-based investment banking company with a $310.7 billion market capitalization. JPMorgan Chase & Co. (NYSE:JPM) delivered a -33.07% return since the beginning of the year, while its 12-month returns are down by -37.74%. The stock closed at $105.98 per share on October 10, 2022.
Here is what Vltava Fund has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2022 investor letter:
“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.
JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.
A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”
Our calculations show that JPMorgan Chase & Co. (NYSE:JPM) ranks 14th on our list of the 30 Most Popular Stocks Among Hedge Funds. JPMorgan Chase & Co. (NYSE:JPM) was in 104 hedge fund portfolios at the end of the second quarter of 2022, compared to 110 funds in the previous quarter. JPMorgan Chase & Co. (NYSE:JPM) delivered a -7.33% return in the past 3 months.
In July 2022, we also shared another hedge fund’s views on JPMorgan Chase & Co. (NYSE:JPM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
Suggested Articles:
- Largest Desalination Plants in the US
- 10 Best Monthly Dividend Stocks To Invest In
- 10 Best Short Squeeze Stocks To Buy
Disclosure: None. This article is originally published at Insider Monkey.
