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Is First Republic Bank (FRC) Stock a Buy For 2021?

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Alex Smith
·3 min read
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Weitz Hickory Fund released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 4.82% for the quarter, underperforming its benchmark, the Russell Midcap Index which returned 7.46% in the same quarter. You should check out Weitz Hickory Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Weitz Hickory Fund highlighted a few stocks and First Republic Bank (NYSE:FRC) is one of them. First Republic Bank (NYSE:FRC) is an investment company. In the last one year, First Republic Bank (NYSE:FRC) stock gained 35.5% and on January 11th it had a closing price of $163.63. Here is what Weitz Hickory Fund said:

"We initiated one new position during the third quarter. First Republic Bank is a San Francisco-based provider of personal and business banking, trust and wealth management services catering to low-risk, high-net-worth (or soon to be) clients. First Republic’s ultra-high-touch service model makes it less of a commodity bank and more of a rarified luxury service organization. This differentiated service model helps to grow customer lifetime values and allows the company to gain new customers simply through existing client referrals. Earnings growth is therefore less of a function of market interest rates (which would be upside to our investment thesis) but through customer growth driving bank and wealth management assets."

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In November 2020, we published an article revealing that First Republic Bank (NYSE:FRC) was one of the 10 best bank stocks to buy right now.

In Q3 2020, the number of bullish hedge fund positions on First Republic Bank (NYSE:FRC) stock decreased by about 16% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in FRC's growth potential. Our calculations showed that First Republic Bank (NYSE:FRC) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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