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Live Oak Bancshares (LOB) Gave Back Some of its 2023 Gains

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. The market delivered positive returns in a volatile first quarter across most regions. Diamond Hill Small Cap Fund outperformed its benchmark, the Russell 2000 Index, in Q1 and returned 7.11% while the benchmark return was 5.18% during the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Diamond Hill Small Cap Fund featured stocks like Live Oak Bancshares, Inc. (NYSE:LOB) in the first quarter 2024 investor letter. Headquartered in Wilmington, North Carolina, Live Oak Bancshares, Inc. (NYSE:LOB) is a bank holding company for Live Oak Banking Company that offers commercial banking products and services. On May 14, 2024, Live Oak Bancshares, Inc. (NYSE:LOB) stock closed at $35.61 per share. One-month return of Live Oak Bancshares, Inc. (NYSE:LOB) was -3.44%, and its shares gained 61.35% of their value over the last 52 weeks. Live Oak Bancshares, Inc. (NYSE:LOB) has a market capitalization of $1.601 billion.

Diamond Hill Small Cap Fund stated the following regarding Live Oak Bancshares, Inc. (NYSE:LOB) in its first quarter 2024 investor letter:

"Our bottom individual contributors in Q1 included WNS Holdings, as well as regional banks Live Oak Bancshares, Inc. (NYSE:LOB) and Bank OZK. Shares of regional banks Live Oak Bancshares and Bank OZK consolidated some of late 2023’s gains tied to investors’ expectations the Fed would begin cutting rates in 2024 — which would relieve deposit pricing pressure and commercial real estate stress. As investors have adjusted expectations for fewer rate cuts in 2024, shares of both companies have declined in sympathy."

An executive in a suit walking across the lobby of a modern commercial bank.

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Live Oak Bancshares, Inc. (NYSE:LOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Live Oak Bancshares, Inc. (NYSE:LOB) at the end of the fourth quarter which was 10 in the previous quarter.

Live Oak Bancshares, Inc. (NYSE:LOB) was the top contributor of the Diamond Hill Small Cap Fund, in the previous quarter. Live Oak Bancshares, Inc. (NYSE:LOB) rose strongly in Q4 2023 following the Fed's November meeting. However, investors' reduced expectations for fewer rate cuts in 2024 led the stock to decline in the current quarter.

We discussed Live Oak Bancshares, Inc. (NYSE:LOB) in another article and shared SouthernSun Small Cap Strategy's optimistic views on the company. In addition, please check out our hedge fund investor letters Q1 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.