Here’s Why Madison Small Cap Fund Re-established its Position in Western Alliance Bancorporation (WAL)
Madison Investments, an investment advisor, released its “Madison Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund (Class Y) returned 5.1% compared to a 5.2% each rise for the Russell 2000 and the Russell 2500 Index. The best-performing sectors of the portfolio were Industrials, Materials, and Financials while Consumer Staples, Information Technology, and Healthcare were the worst-performing sectors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Small Cap Fund highlighted stocks like Western Alliance Bancorporation (NYSE:WAL) in the second quarter 2023 investor letter. Headquartered in Phoenix, Arizona, Western Alliance Bancorporation (NYSE:WAL) is a bank holding company. On July 17, 2023, Western Alliance Bancorporation (NYSE:WAL) stock closed at $39.83 per share. One-month return of Western Alliance Bancorporation (NYSE:WAL) was 7.39%, and its shares lost 47.88% of their value over the last 52 weeks. Western Alliance Bancorporation (NYSE:WAL) has a market capitalization of $4.361 billion.
Madison Small Cap Fund made the following comment about Western Alliance Bancorporation (NYSE:WAL) in its second quarter 2023 investor letter:
"In the aftermath of the Silicon Valley Bank panic, we sold Texas Capital, which withstood the broader regional bank sell-off on a relative basis, and bought Western Alliance Bancorporation (NYSE:WAL). WAL is a high-quality regional bank franchise and has historically traded at a premium to the group. However, the recent panic produced a rare opportunity at which it was trading at a steep discount. Late in the second quarter, the company provided an update on recent deposit trends that revealed a reversal from deposit flight to growth. This data point gave us the confidence to re-establish a new position in the bank. Our private market valuation (PMV) estimate for WAL is $75."
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Western Alliance Bancorporation (NYSE:WAL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Western Alliance Bancorporation (NYSE:WAL) at the end of first quarter which was 26 in the previous quarter.
We discussed Western Alliance Bancorporation (NYSE:WAL) in another article and shared the list of inverse Cramer stocks to buy according to 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.
