Greenlight Capital Sold First Citizens BancShares (FCNCA) Due to High Valuation
Greenlight Capital, an investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Greenlight Capital funds returned 2.8% net of fees and expenses, compared to 4.3% for the S&P 500 index. The longs in the portfolio underperformed the S&P 500 and the shorts outperformed the inverse of the S&P 500. However, the portfolio maintained a neutral net long exposure of about 40%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital highlighted stocks like First Citizens BancShares, Inc. (NASDAQ:FCNCA) in the second quarter 2024 investor letter. First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a holding company for First-Citizens Bank & Trust Company that offers retail and commercial banking services. The one-month return of First Citizens BancShares, Inc. (NASDAQ:FCNCA) was -6.92%, and its shares gained 42.84% of their value over the last 52 weeks. On August 26, 2024, First Citizens BancShares, Inc. (NASDAQ:FCNCA) stock closed at $1,950.80 per share with a market capitalization of $28.984 billion.
Greenlight Capital stated the following regarding First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q2 2024 investor letter:
"We exited a few positions during the quarter, including, First Citizens BancShares, Inc. (NASDAQ:FCNCA): The bargain acquisition of the corpse of Silicon Valley Bank worked out well. The shares appreciated more than 80% and no longer appear cheap."
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First Citizens BancShares, Inc. (NASDAQ:FCNCA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held First Citizens BancShares, Inc. (NASDAQ:FCNCA) at the end of the second quarter which was 48 in the previous quarter. While we acknowledge the potential of First Citizens BancShares, Inc. (NASDAQ:FCNCA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed First Citizens BancShares, Inc. (NASDAQ:FCNCA) and shared the list of best local bank stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2024 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.