Broyhill Capital Management Sold The Charles Schwab Corporation (SCHW) Due to Limited Upside - InvestingChannel

Broyhill Capital Management Sold The Charles Schwab Corporation (SCHW) Due to Limited Upside

Broyhill Asset Management, an investment advisor, released a third-quarter 2024, investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 6% net of all fees and expenses in the third quarter. The top contributors in the quarter were Philip Morris, Fiserv, Avantor, and Baxter. There was only one material detractor: Dollar General. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Broyhill Asset Management 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 7.09%, and its shares gained 30.50% of their value over the last 52 weeks. On December 3, 2024, The Charles Schwab Corporation (NYSE:SCHW) stock closed at $81.12 per share with a market capitalization of $148.49 billion.

Broyhill Asset Management stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2024 investor letter:

“The Charles Schwab Corporation (NYSE:SCHW). We established a position in Schwab amidst last year’s mini banking crisis. While the worst fears appear to be behind the company, management’s indicated shift away from the company’s bank strategy gives us a higher degree of uncertainty in this investment in the near-term. Upside appears more limited following recent appreciation, so we opted to exit the position in September.”

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, 74 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the third quarter which was 72 in the previous quarter. The third quarter revenue of The Charles Schwab Corporation (NYSE:SCHW) increased 5% year-over-year to $4.8 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 the list of best stocks under $100 to invest in. The London Company Large Cap Strategy stated in its Q3 2024 letter that it expects a strong rebound in The Charles Schwab Corporation (NYSE:SCHW). In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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