2023-04-14 10:43:21 ET
Florida based investment firm GQG Partners offloaded its entire $1.4B stake in brokerage behemoth Charles Schwab ( NYSE: SCHW ) during last month's banking turmoil, according to a Friday report from the Financial Times .
The sale came as a slew of shareholders raised concerns about unrealized losses on Schwab's ( SCHW ) bond portfolio in the wake of rising interest rates. The stock was off 36.6% since the start of 2023.
GQG was among Schwab's ( SCHW ) biggest investors, having held a 1% stake as of Dec. 31, 2022, the article said, citing Bloomberg data.
“We didn’t see an existential risk but they were caught up in the sentiment around banks,” Mark Barker, GQG's head of international, told the FT .
He also warned that SCHW is at risk of losing deposit revenue as the company's clients moved their deposits into higher yielding products, chiefly money-market funds .
Investors will get some insight on the impact that March's banking tumult had on Schwab ( SCHW ) when it publishes first-quarter earnings on April 17. Last week, the Texas-based firm saw its second highest amount of core net new clients assets for any March in its history.
Pearl Gray Equity and Research, investing groups leader of 'The Factor Investing Hub,' mapped out what to expect from SCHW's Q1 earnings.
More on Charles Schwab ( SCHW ) and the Bank Crisis:
- Schwab: Five Reasons Not To Buy Yet
- Schwab: A Buffett-Style 'Fat Pitch' That Could Triple In 3 Years
- Charles Schwab: Off-The-Charts Liquidity
- Banking crisis boosts risk of recession, JPMorgan’s Dimon says
- Fed’s Barr blames management, internal control lapses for Silicon Bank failure
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Charles Schwab investor sold $1.4B stake during March's banking tumult - report