Miller Value Partners, an investment management company, released its “Income Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned 1.85% (net of fees) outperforming the ICE BofA US High Yield Index’s 0.54% return and the S&P 500 Index’s -3.27% return. There is a weakness in the global market which is largely tied to rates continuing their parabolic move higher. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Income Strategy highlighted stocks like Western Alliance Bancorporation (NYSE:WAL) in the third quarter 2023 investor letter. Western Alliance Bancorporation (NYSE:WAL) is a bank holding company headquartered in Phoenix, Arizona. On October 18, 2023, Western Alliance Bancorporation (NYSE:WAL) stock closed at $46.87 per share. One-month return of Western Alliance Bancorporation (NYSE:WAL) was 0.93%, and its shares lost 23.59% of their value over the last 52 weeks. Western Alliance Bancorporation (NYSE:WAL) has a market capitalization of $5.132 billion.
Miller Value Income Strategy made the following comment about Western Alliance Bancorporation (NYSE:WAL) in its Q3 2023 investor letter:
“Western Alliance Bancorporation (NYSE:WAL) also performed well during the quarter. The regional bank reported 2Q23 EPS of $1.96, -18.0% Y/Y, slightly below consensus of $1.97, and Net Interest Margin (NIM) of 3.42%, -12bps Y/Y, below consensus of 3.50%. Tangible Book Value (TBV) per share stood at $43.09 (P/TBV of ~1.1x) at the end of the quarter, +17.5% Y/Y, while the bank’s Common Equity Tier 1 (CET1) ratio came in at 10.1%, ahead of management’s estimates for 10%+, in-line with consensus. The company posted quarterly deposit growth of $3.5B, or +7.3% sequentially, with total insured and collateralized deposits representing 81% of total deposits and available liquidity coverage of 276% of uninsured deposits. For the second half of 2023 (2H23), management is guiding for deposit growth of $2B per quarter, continued CET1 growth towards the company’s 2024 target of 11%+, NIM of 3.55%, an Adjusted Efficiency ratio in the high-40’s, and net charge-offs of 10bps, at the respective midpoints.”
A woman holding a checkbook and standing in front of a bank location. Editorial photo for a financial news article. 8k. –ar 16:9
Western Alliance Bancorporation (NYSE:WAL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Western Alliance Bancorporation (NYSE:WAL) at the end of second quarter which was 31 in the previous quarter.
We discussed Western Alliance Bancorporation (NYSE:WAL) in another article and shared Patient Capital Opportunity Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.