Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund outperformed the Russell 2000 Index and returned 6.31%, compared to the Index’s return of 2.74%. Strength in industrials, energy, and healthcare holdings contributed to the fund’s relative performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Small Cap Fund highlighted stocks like Live Oak Bancshares, Inc. (NYSE:LOB) in the first quarter 2023 investor letter. Headquartered in Wilmington, North Carolina, Live Oak Bancshares, Inc. (NYSE:LOB) is a bank holding company that offers commercial banking products and services. On May 15, 2023, Live Oak Bancshares, Inc. (NYSE:LOB) stock closed at $21.57 per share. One-month return of Live Oak Bancshares, Inc. (NYSE:LOB) was -8.13%, and its shares lost 44.73% of their value over the last 52 weeks. Live Oak Bancshares, Inc. (NYSE:LOB) has a market capitalization of $974.356 million.
Diamond Hill Small Cap Fund made the following comment about Live Oak Bancshares, Inc. (NYSE:LOB) in its Q1 2023 investor letter:
“Our bottom contributors in Q1 were heavily concentrated in the financials sector, including Live Oak Bancshares, Inc. (NYSE:LOB), First Interstate BancSystem, Bank OZK, BOK Financial Corporation, and Webster Financial Corporation. Following the failure of SVB and Signature, liquidity fears spread among the entire banking industry — with a particular focus on uninsured deposit balances and high commercial real estate exposure, which these institutions all have to varying degrees. However, we have rigorously reevaluated each banks’ balance sheet and fundamentals in the wake of the volatility and feel comfortable with our current positioning. We believe the market overreacted to SVB’s failure, dragging down shares of institutions that are meaningfully differentiated and which — at this point — seem relatively unlikely to encounter similar solvency concerns. While we will remain vigilant in evaluating any new information which could alter our theses for any of these institutions, for now, we are maintaining our exposure.”
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Live Oak Bancshares, Inc. (NYSE:LOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Live Oak Bancshares, Inc. (NYSE:LOB) at the end of the fourth quarter which was 20 in the previous quarter.
We discussed Live Oak Bancshares, Inc. (NYSE:LOB) in another article and shared SouthernSun Small Cap Strategy’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.