Multiple Reasons for the Positive Performance of Credicorp Ltd. (BAP)
Ariel Investments, an investment management company, released its “Ariel Global Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the Ariel Global fund traded +3.32% higher, trailing the +6.18% return of the MSCI ACWI Index and outperforming the MSCI ACWI Value Index’s +2.98% gain. The fund’s lack of exposure to Materials and Energy was the greatest source of positive attribution in the quarter, while Communication Services holdings and choices within Information Technology detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Global Fund highlighted stocks like Credicorp Ltd. (NYSE:BAP) in the second quarter 2023 investor letter. Headquartered in Lima, Peru, Credicorp Ltd. (NYSE:BAP) offers financial, insurance, and health services and products. On September 12, 2023, Credicorp Ltd. (NYSE:BAP) stock closed at $137.28 per share. One-month return of Credicorp Ltd. (NYSE:BAP) was -3.68%, and its shares gained 7.90% of their value over the last 52 weeks. Credicorp Ltd. (NYSE:BAP) has a market capitalization of $10.918 billion.
Ariel Global Fund made the following comment about Credicorp Ltd. (NYSE:BAP) in its Q2 2023 investor letter:
"Peruvian banking franchise, Credicorp Ltd. (NYSE:BAP), was another contributor to relative returns in the quarter, driven by a stabilizing political situation and improving business confidence. The company is benefiting from higher policy rate tailwinds, which is driving net interest margins above historical ranges. Our thesis remains focused on Credicorp’s attractive long-term earnings potential. The company has a dominant market position in a highly concentrated banking system with many attractive features including low penetration and high returns on equity. Credicorp also continues to invest in digital transformation and accelerate disruptive innovations. Moreover, it views venture capital and the underdeveloped fintech market in Peru as an opportunity to boost growth and enhance shareholder value."
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Credicorp Ltd. (NYSE:BAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Credicorp Ltd. (NYSE:BAP) at the end of second quarter which was 18 in the previous quarter.
We discussed Credicorp Ltd. (NYSE:BAP) in another article and shared the list of most undervalued bank stocks to buy according to Wall Street analysts. 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.
