Heartland Advisors, an investment management company, released its “Heartland Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the Value Investor Class of the fund returned 2.74% and the Value Institutional Class returned 2.79% compared to -0.66% for the Russell 2000 Value Index. Stock selection played a vital role in the fund’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Heartland Value Fund highlighted stocks like First Interstate BancSystem, Inc. (NASDAQ:FIBK) in the first quarter 2023 investor letter. Headquartered in Billings, Montana, First Interstate BancSystem, Inc. (NASDAQ:FIBK) is a bank holding company. On April 13, 2023, First Interstate BancSystem, Inc. (NASDAQ:FIBK) stock closed at $29.55 per share. One-month return of First Interstate BancSystem, Inc. (NASDAQ:FIBK) was -0.67%, and its shares lost 13.97% of their value over the last 52 weeks. First Interstate BancSystem, Inc. (NASDAQ:FIBK) has a market capitalization of $3.085 billion.
Heartland Value Fund made the following comment about First Interstate BancSystem, Inc. (NASDAQ:FIBK) in its Q1 2023 investor letter:
“As the banking sector has sold off across the board, the market is now pricing in the odds of many banks needing to raise capital. This chaos creates fear, but an opportunity to discover potential opportunities through in-depth fundamental research. For instance, we were able to take advantage of markdowns in the quarter to add to companies with strategic and competitive advantages.
First Interstate BancSystem, Inc. (NASDAQ:FIBK), a community bank headquartered in Billings, MT, is a good example. The banks that failed in early March lent money to specific customer bases that were high risk. Silicon Valley Bank lent money to venture-backed startups that often generated no cash flow. In the case of Silvergate, it lent money to crypto currency market participants.
That’s not the case with First Interstate. The company operates outside the spotlight in the Northwest. It maintains the second largest share of deposits in Montana and Wyoming and has executed strategic acquisitions to gain access to contiguous states including Idaho, Oregon, Washington, and South Dakota. These are markets that tend to be more consolidated and less competitive, resulting in higher margins and returns relative to industry peers…” (Click here to read the full text)
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First Interstate BancSystem, Inc. (NASDAQ:FIBK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held First Interstate BancSystem, Inc. (NASDAQ:FIBK) at the end of the fourth quarter which was 14 in the previous quarter.
We discussed First Interstate BancSystem, Inc. (NASDAQ:FIBK) in another article and shared Diamond Hill Capital Management’s 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.
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Disclosure: None. This article is originally published at Insider Monkey.
