Manole Capital Management, an investment management company, focused on covering the Financial and Technology sectors, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The letter discussed the pending debt ceiling crisis, a few macro issues like the money market and stock market, household savings, the labor environment, the Fed, inflation trends, and interest rates. The majority of the letter is focused on specific Fintech and financial issues. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Manole Capital Management highlighted stocks like JPMorgan Chase & Co. (NYSE:JPM) in the second quarter 2023 investor letter. Headquartered in New York, New York, JPMorgan Chase & Co. (NYSE:JPM) is a financial services company. On July 6, 2023, JPMorgan Chase & Co. (NYSE:JPM) stock closed at $143.21 per share. One-month return of JPMorgan Chase & Co. (NYSE:JPM) was 1.56%, and its shares gained 25.23% of their value over the last 52 weeks. JPMorgan Chase & Co. (NYSE:JPM) has a market capitalization of $418.501 billion.
Manole Capital Management made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its second quarter 2023 investor letter:
“It will be interesting to see what kind of policy decisions are made around regulation for institutions that are between $100 billion of assets and $700 billion of assets. As JPMorgan Chase & Co. (NYSE:JPM)’s purchase of First Republic shows, scale is a competitive advantage. It now has 13% of total US deposits and it manages 21% of America’s credit card spending. With additional regulatory burdens coming, banks are facing a profitability headwind and 100 to 300 basis points of possible ROE erosion.
The banking sector is facing a slow-moving crisis, but we aren’t sure it is enough to sink the overall health of the US consumer or economy. Credit will contract and lending standards will continue to rise. However, we do not see this problem escalating to the size and scale of previous banking crises.
Jamie Dimon, Chairman and CEO of JP Morgan Chase clearly sees the risks these FINTECH companies present. In his annual letter to shareholders, he stated that all incumbent banks should be “scared shitless” of these FINTECH rivals. Not only is his bank being attacked from multiple angles, but Apple just launched a cash management program with Goldman Sachs. On the first day of Apple’s savings program, it raised $400 million and eclipsed $1 billion in its first four days. Dimon specifically labeled Apple a bank the other day in an interview when he said, “It may not have insured deposits, but it’s a bank. If you move money, hold money, manage money, lend money — that’s a bank.”
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JPMorgan Chase & Co. (NYSE:JPM) is in 19th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 112 hedge fund portfolios held JPMorgan Chase & Co. (NYSE:JPM) at the end of first quarter which was 100 in the previous quarter.
We discussed JPMorgan Chase & Co. (NYSE:JPM) in another article and shared ClearBridge Large Cap Value Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.