Baron Capital Management
- Billionaire investor Ron Baron snapped up more Charles Schwab stock on Monday.
- He said he “modestly increased” his position, according to CNBC.
- Charles Schwab said Monday it has ample liquidity and is doing “exceptionally well.”
Billionaire investor Ron Baron snapped up more Charles Schwab shares amid the steep sell-off spurred by the collapse of Silicon Valley Bank.
Baron said he “modestly increased” his position on Monday, CNBC reported. Though he didn’t disclose the amount of new shares purchased, his asset management firm, Baron Capital, reported 7.8 million shares at the end of 2022, equivalent to about $441 million at the current share price of $56.
Charles Schwab stock dropped 11% on Monday as investors fled bank shares after SVB’s collapse. But the brokerage has already started to recover Tuesday, jumping 10% from yesterday’s closing price as of 9:30 am ET.
That’s largely due to investors’ quelled anxiety over another financial crisis. President Biden assured Americans that the US banking system was “safe” on Monday, and experts say that the fallout of Silicon Valley Bank could be due to unique problems the bank was facing, limiting the risk of contagion across the industry.
Charles Schwab also said Monday it had “significant” liquidity, adding that its business was continuing “to perform exceptionally well.
Though the bank had nearly $28 billion in unrealized losses in its bond portfolio, it estimated it had around $100 billion of cash flow and added that around 80% of the bank’s total funds were small-scale deposits backed by the FDIC, which are generally more stable than larger deposits.