Here’s Why You Should Add Texas Capital Bancshares (TCBI) to Your Portfolio

·2 min read

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 8.78% net compared to a 7.43% return for the Russell 2500 Index. Furthermore, the fund underperformed its secondary benchmark, the Russell 2500 Value Index, which returned 9.21%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Meridian Contrarian Fund highlighted stocks like Texas Capital Bancshares, Inc. (NASDAQ:TCBI) in its Q4 2022 investor letter. Headquartered in Dallas, Texas, Texas Capital Bancshares, Inc. (NASDAQ:TCBI) is a bank holding company. On March 23, 2023, Texas Capital Bancshares, Inc. (NASDAQ:TCBI) stock closed at $48.94 per share. One-month return of Texas Capital Bancshares, Inc. (NASDAQ:TCBI) was -25.38%, and its shares lost 21.22% of their value over the last 52 weeks. Texas Capital Bancshares, Inc. (NASDAQ:TCBI) has a market capitalization of $2.363 billion.

Meridian Contrarian Fund made the following comment about Texas Capital Bancshares, Inc. (NASDAQ:TCBI) in its Q4 2022 investor letter:

"Texas Capital Bancshares, Inc. (NASDAQ:TCBI), is a regional bank transforming from a fast-growing but sub-scale national lender to a Texas-focused full-service financial services organization, led by a new management team that previously worked at JP Morgan Chase. In 2022, the company shed underperforming business lines, invested heavily in technology differentiated for a regional bank, and perhaps most importantly, increased the credit quality of its core business. These moves resulted in a 40% reduction in earnings, but the asset sales significantly increased TCBI’s capital position to a level we believe can weather any economic environment while allowing for considerable investment in key talent and technology. Given the idiosyncratic nature of this bank along with an inexpensive valuation – both presently and compared to our normalized earnings view - we initiated a position during the quarter."

Saving. Save, Piggy Bank
Saving. Save, Piggy Bank


Texas Capital Bancshares, Inc. (NASDAQ:TCBI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Texas Capital Bancshares, Inc. (NASDAQ:TCBI) at the end of the fourth quarter which was 24 in the previous quarter.

We discussed Texas Capital Bancshares, Inc. (NASDAQ:TCBI) in another article and shared Bernzott Capital Advisors' views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 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.