Here’s Why MBIA (MBI) Declined in Q1
The London Company, an investment management company, released “The London Company Small-Mid Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 5% gross, (4.8% net) compared to a 3.4% return for the Russell 2500 Index. Sector allocation was a tailwind for the outperformance of the fund in the quarter, while stock selection slightly impacted the relative performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small-Mid Cap Strategy highlighted stocks like MBIA Inc. (NYSE:MBI) in the first quarter 2023 investor letter. Headquartered in Purchase, New York, MBIA Inc. (NYSE:MBI) is a financial guarantee insurance services provider. On June 30, 2023, MBIA Inc. (NYSE:MBI) stock closed at $8.64 per share. One-month return of MBIA Inc. (NYSE:MBI) was 3.85%, and its shares lost 32.39% of their value over the last 52 weeks. MBIA Inc. (NYSE:MBI) has a market capitalization of $474.211 million.
The London Company Small-Mid Cap Strategy made the following comment about MBIA Inc. (NYSE:MBI) in its first quarter 2023 investor letter:
"MBIA Inc. (NYSE:MBI) - MBI no longer writes new municipal bond insurance, but the stock can move based on potential changes in the value of outstanding liabilities. In the latest quarter, there was some concern about the regulatory approval of the MBI's last pending settlement in Puerto Rico (PREPA utility). MBIA has $2.4B in claims paying resources available to cover any remaining exposure to Puerto Rico, which is in the range of $700M. Separately, MBI management engaged Barclays to review strategic alternatives. Looking ahead, we believe that the company will be acquired or will continue to run-off the remaining liabilities in the near term."
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MBIA Inc. (NYSE:MBI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held MBIA Inc. (NYSE:MBI) at the end of first quarter 2023 which was 23 in the previous quarter.
We discussed MBIA Inc. (NYSE:MBI) in another article and shared Horos Asset Management's 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.
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Disclosure: None. This article is originally published at Insider Monkey.
