Coho Partners, an investment advisory firm, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. So far, 2023 was one of the most challenging periods in the firm’s history. The fund had a fractional loss through the first six months of 2023 which compared poorly against the S&P 500 Index’s return of just under 17% and the Russell 1000 Value Index’s return of just over 5%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Coho Partners Relative Value Equity Fund highlighted stocks like U.S. Bancorp (NYSE:USB) in the second quarter 2023 investor letter. Headquartered in Minneapolis, Minnesota, U.S. Bancorp (NYSE:USB) is a financial service holding company. On July 20, 2023, U.S. Bancorp (NYSE:USB) stock closed at $39.14 per share. One-month return of U.S. Bancorp (NYSE:USB) was 22.77%, and its shares lost 17.96% of their value over the last 52 weeks. U.S. Bancorp (NYSE:USB) has a market capitalization of $59.998 billion.
Coho Partners Relative Value Equity Fund made the following comment about U.S. Bancorp (NYSE:USB) in its second quarter 2023 investor letter:
“U.S. Bancorp (USB) has a well-deserved reputation of being a high quality, conservative lender and historically the company has performed well versus peers during challenging times. We believe the near-term pressure on USB’s share price stems from the collapse of Silicon Valley Bank, Signature Bank, and First Republic. USB has been caught up in the regional bank issues, but we believe it has a bright future. Since our initial purchase during the pandemic, USB has performed in line or ahead of our expectation. We were also very positive on the company’s decision to acquire Union Bank, which operated primarily in California, a market in which USB had limited exposure. Union Bank’s customers were primarily small businesses, where USB saw potential to leverage its cash management and payment offerings to gain meaningful revenue growth with above average margins. The conversion of Union Bank to USB programs went without a glitch.
We believe USB is well capitalized but with the Union Bank deal, USB will be subject to additional capital requirements, which will prevent buybacks in the near term. However, we do anticipate a modest dividend increase this December but, in the meantime, USB trades at less than 8x trailing earnings with a 5.8% dividend yield.”
U.S. Bancorp (NYSE:USB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held U.S. Bancorp (NYSE:USB) at the end of first quarter 2023 which was 58 in the previous quarter.
We discussed U.S. Bancorp (NYSE:USB) in another article and shared Madison Sustainable Equity Fund’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.