Bank of America Corporation (BAC) Declined in Q2 on Challenging Backdrop for Banks
Diamond Hill Capital, an investment management company, released its “Select Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy outperformed the Russell 3000 Index returning 10.40% net of fees compared to an 8.39% return for the Index. Strength in industrials and healthcare holdings helped the relative performance of the strategy along with discretionary and financials holdings. On the other hand, technology holdings were underweight, which negatively affected the performance during the quarter. Likewise, investments in materials trailed the benchmark and dragged the relative returns. You can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Select Strategy highlighted stocks like Bank of America Corporation (NYSE:BAC) in the second quarter 2023 investor letter. Headquartered in Charlotte, North Carolina, Bank of America Corporation (NYSE:BAC) provides banking and financial products and services. On September 20, 2023, Bank of America Corporation (NYSE:BAC) stock closed at $28.55 per share. One-month return of Bank of America Corporation (NYSE:BAC) was -0.24%, and its shares lost 12.15% of their value over the last 52 weeks. Bank of America Corporation (NYSE:BAC) has a market capitalization of $226.869 billion.
Diamond Hill Select Strategy made the following comment about Bank of America Corporation (NYSE:BAC) in its Q2 2023 investor letter:
"Other bottom contributors included SunOpta, Bank of America Corporation (NYSE:BAC) and Texas Instruments. Bank of America (which we added to the portfolio in Q2) is among the US’s largest banks. Shares were pressured during the quarter against a still-challenging backdrop for banks, particularly as investors fret about rising deposit costs and the values of some longer-duration assets in a rising-rates environment."
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, 90 hedge fund portfolios held Bank of America Corporation (NYSE:BAC) at the end of second quarter which was 91 in the previous quarter.
We discussed Bank of America Corporation (NYSE:BAC) in another article and shared the list of Warren Buffett’s dividend stocks by sectors and industries. 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.
