Bank of America (BAC) Fell on Inverted Yield Curves
Smead Capital Management, an investment management company, released its “Smead Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the third quarter of 2023, reality began to set in on the stock market, and the fund was affected by it. In the third quarter, the fund declined -1.02% compared to a -3.27% loss for the S&P 500 Index and a -3.17% fall for the Russell 1000 Value Index. Year to date, the fund returned 2.10%, compared to 13.07% and 1.79% gains for the S&P 500 and the Russell 1000 Value Index, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Smead Value Fund highlighted stocks like Bank of America Corporation (NYSE:BAC) in the third quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Bank of America Corporation (NYSE:BAC) provides banking and financial products and services. On December 19, 2023, Bank of America Corporation (NYSE:BAC) stock closed at $33.51 per share. One-month return of Bank of America Corporation (NYSE:BAC) was 13.09%, and its shares gained 2.54% of their value over the last 52 weeks. Bank of America Corporation (NYSE:BAC) has a market capitalization of $265.189 billion.
Smead Value Fund made the following comment about Bank of America Corporation (NYSE:BAC) in its Q3 2023 investor letter:
"Through the first nine months of the year, we had a gain of 2.10%. The S&P 500 had a gain of 13.07% and the Russell 1000 Value had a gain of 1.79%. The stock market realized markedly higher riskless US Treasury interest rates had their effect on the stock market as it began to reassert what Warren Buffett calls the “gravitational pull” on price-to-earnings ratios (P/E).
On the downside, Target (TGT), Bank of America Corporation (NYSE:BAC) and Pfizer (PFE) detracted the most in the first nine months of the year. Inverted yield curves are historically lousy for the banks, so the weak performance for BAC is no surprise."
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Bank of America Corporation (NYSE:BAC) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held Bank of America Corporation (NYSE:BAC) at the end of third quarter which was 90 in the previous quarter.
We discussed Bank of America Corporation (NYSE:BAC) in another article and shared the list of best bank dividend stocks to buy. 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.
