Silver Beach Capital, a value-oriented investment management firm, released its inaugural first quarter 2023 investor letter. A copy of the same can be downloaded here. The recent banking sector decline had an impact on the fund’s first-quarter performance. However, the fund still returned 2.8% in the first quarter compared to a 5.3% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Silver Beach Capital highlighted stocks like Ally Financial Inc. (NYSE:ALLY) in the first quarter 2023 investor letter. Headquartered in Detroit, Michigan, Ally Financial Inc. (NYSE:ALLY) provides digital financial products and services. On April 27, 2023, Ally Financial Inc. (NYSE:ALLY) stock closed at $26.00 per share. One-month return of Ally Financial Inc. (NYSE:ALLY) was 2.00%, and its shares lost 34.93% of their value over the last 52 weeks. Ally Financial Inc. (NYSE:ALLY) has a market capitalization of $7.821 billion.
Silver Beach Capital made the following comment about Ally Financial Inc. (NYSE:ALLY) in its Q1 2023 investor letter:
"Ally Financial Inc. (NYSE:ALLY) is the largest all-digital bank in the United States, the 22nd largest bank by total assets ($192 billion), the nation’s leading prime auto lender (with 6.5 million consumer customers), and leading auto floorplan lender (with over 23,000 dealer relationships). Most of Ally’s assets are auto loans and finance receivables, but Ally also offers consumer protection insurance through its dealer channels and operates small corporate and mortgage lending businesses. Notably, Ally also offers some of the industry’s most competitive deposit products: Ally was awarded “Best Checking Account”, “Best Saving Account”, and overall “Best Online Bank” by third party reviews and was the first large bank to eliminate overdraft fees. We believe Ally’s intrinsic value is more than 40% greater than its March 31 share price.
Ally evolved from the auto finance unit of GMAC, emerged from GMAC’s restructuring as a bank holding company and rebranded, before going public in 2014. Since then, Ally has transformed itself from a wholesale-funded, captive finance company into a full-service retail-funded automotive finance and insurance provider by steadily gaining retail deposit market share. Today, Ally’s balance sheet is 85% funded (versus 43% funded in 2014) by $152 billion of deposits (versus $58 billion in 2014) across 4.4 million depositors (versus 900k depositors in 2014). Over 90% of Ally’s deposits are FDIC insured, more than any other $100+ billion asset bank in the United States. Ally’s massive insured deposit base is stickier and more resilient to depositor fear of a bank run than other regional banks..."(Click here to read the full text)
Ally Financial Inc. (NYSE:ALLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Ally Financial Inc. (NYSE:ALLY) at the end of the fourth quarter which was 42 in the previous quarter.
We discussed Ally Financial Inc. (NYSE:ALLY) in another article and shared Oakmark Equity and Income Funds views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.