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Is First Citizens BancShares Inc. (FCNCA) A Smart Long-Term Buy?

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Jose Karlo Mari Tottoc
·3 min read
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Oakmark Funds, an investment management firm, published its “Oakmark Select Fund” first quarter 2021 investor letter – a copy of which can be seen here. A return of 16.1% was reported by the fund for the Q1 of 2021, outperforming its S&P 500 benchmark that delivered a 6.2% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Oakmark Select Fund, in their Q1 2021 investor letter, mentioned First Citizens BancShares, Inc. (NASDAQ: FCNCA) and shared their insights on the company. First Citizens BancShares, Inc. is a Raleigh, North Carolina-based bank holding company that currently has an $8.2 billion market capitalization. Since the beginning of the year, FCNCA delivered a 48.06% return, extending its 12-month gains to 153.74%. As of April 12, 2021, the stock closed at $850.29 per share.

Here is what Oakmark Select Fund has to say about First Citizens BancShares, Inc. in their Q1 2021 investor letter:

"We bought two new positions in the Fund this quarter: Humana and First Citizens BancShares. First Citizens BancShares is a well-run, undervalued community bank that we believe is creating significant shareholder value through a nicely timed merger with CIT Group. Note that we consider our purchases of the A & B share classes of First Citizens and of CIT Group to be investments in the same entity."

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Adam Gregor/Shutterstock.com

Our calculations show that First Citizens BancShares, Inc. (NASDAQ: FCNCA) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, First Citizens BancShares, Inc. was in 27 hedge fund portfolios compared to 21 funds in the third quarter. FCNCA delivered a 33.86% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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