Madison Funds, managed by Madison Asset Management, LLC, released its “Madison Small Cap Fund” third quarter 2022 investor letter – a copy of which can be downloaded here. The Russell 2000 declined 2.2% and the Madison Small Cap Fund (Class Y) underperformed the benchmark. With the exception of Energy and Healthcare, all sectors delivered negative returns. Both sector allocation and stock selection hurt our relative performance. 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, Madison Small Cap Fund mentioned Texas Capital Bancshares, Inc. (NASDAQ:TCBI) and explained its insights for the company. Founded in 1996, Texas Capital Bancshares, Inc. (NASDAQ:TCBI) is a Dallas, Texas-based bank holding company with a $2.8 billion market capitalization. Texas Capital Bancshares, Inc. (NASDAQ:TCBI) delivered a -4.25% return since the beginning of the year, while its 12-month returns are down by -7.04%. The stock closed at $57.69 per share on November 02, 2022.
Here is what Madison Small Cap Fund has to say about Texas Capital Bancshares, Inc. (NASDAQ:TCBI) in its Q3 2022 investor letter:
“Within financials, our decision to sell our cyclical, housing-exposed banks and concentrate into Texas Capital Bancshares (NASDAQ:TCBI) paid off. TCBI is a turnaround story in an attractive market. Unlike many other regional banks, Texas Capital is extremely well funded and is growing its loan portfolio nicely, a combination that is rare in today’s regional banking environment.”
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Our calculations show that Texas Capital Bancshares, Inc. (NASDAQ:TCBI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Texas Capital Bancshares, Inc. (NASDAQ:TCBI) was in 19 hedge fund portfolios at the end of the second quarter of 2022, compared to 26 funds in the previous quarter. Texas Capital Bancshares, Inc. (NASDAQ:TCBI) delivered a -2.24% return in the past 3 months.
In October 2022, we also shared another hedge fund’s views on Texas Capital Bancshares, Inc. (NASDAQ:TCBI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.