Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the Ariel Appreciation fund gained +1.72% ahead of the Russell Midcap Value Index’s +1.32% return while trailing the Russell Midcap Index’s +4.06% return. The fund’s annual average returns for 1-, 5-, and 10-year periods for the period ended March 31, 2023, were -6.66%, +5.32%, and +7.94%, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Appreciation Fund highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the first quarter 2023 investor letter. Headquartered in Westlake, Texas, The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. On June 1, 2023, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $52.70 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was 11.25%, and its shares lost 26.47% of their value over the last 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $95.916 billion.
Ariel Appreciation Fund made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2023 investor letter:
“Alternatively, several positions weighed on performance. Financial services provider, The Charles Schwab Corporation (NYSE:SCHW) traded lower, as the sudden run on Silicon Valley Bank’s deposits sparked investor concerns about the health of the U.S. financial system. While we believe the actions taken by the Fed were well constructed and have proved effective thus far in walling off the contagion, we acknowledge SCHW may be impacted by a reduced earnings trajectory near-term as cash sorting has increased the need for more expensive short term funding sources. Meanwhile, the company addressed the cash sorting environment noting three key sources of liquidity and confirming over 80% of total bank deposits are FDIC insured. Amidst this backdrop, we continue to believe SCHW’s risk/reward is skewed to the upside and expect the company to weather these pressures by flexing its scale and customer-centric focus in support of its industry leading cost advantage. We also think the TD Ameritrade acquisition will continue to create incremental value and further enhance SCHW’s marketplace standing and long-term growth trajectory.”
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of first quarter 2023 which was 74 in the previous quarter.
We discussed The Charles Schwab Corporation (NYSE:SCHW) in another article and shared the list of stocks recently upgraded by analysts. 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.