Middle Coast Investing, an investment advisor firm, released its third-quarter investor letter. A copy of the letter can be downloaded here. It was a frustrating quarter for the firm. The portfolio appreciated 0.7% in the quarter but lagged the main indices and closer benchmarks. The portfolio’s price to earnings for the trailing 12 months (TTM) was 19.7. Cash and equivalents accounted for 17.1% of the portfolio at the end of the quarter, with an estimated average yield of 3%. This compares to 13.4% of the portfolio and a 3.9% yield at the end of Q2. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Middle Coast Investing highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW) in the third quarter 2024 investor letter. The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company that offers wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The one-month return of The Charles Schwab Corporation (NYSE:SCHW) was 1.95%, and its shares gained 24.16% of their value over the last 52 weeks. On October 7, 2024, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $64.29 per share with a market capitalization of $117.608 billion.
Middle Coast Investing stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2024 investor letter:
“There are also not as good transitions happening. The Charles Schwab Corporation (NYSE:SCHW) has called 2024 a transition year as it deals with the balance sheet issues that popped up in last year’s regional bank crisis. On its last earnings call, the company suggested it may shift its fundamental model – holding client cash in a bank – given the interest rate sensitivity. This may smooth out its business, but harm its upside earnings power. The company also just announced a new CEO. I think the company’s position is safer than some in the market, and that its long-term earnings power is undamaged. But the market has been impatient so far.”
A corporate finance professional studying a financial performance chart.
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the second quarter which was 71 in the previous quarter. The Charles Schwab Corporation’s (NYSE:SCHW) second quarter revenue increased 1% year-over-year to $4.7 billion. While we acknowledge the potential of The Charles Schwab Corporation (NYSE:SCHW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed The Charles Schwab Corporation (NYSE:SCHW) and shared Goldman Sachs’ top mutual fund manager stock picks. In addition, please check out our hedge fund investor letters Q3 2024 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.