(Bloomberg) - Several large funds sold stakes in Charles Schwab Corp. in the first quarter, as anxiety over the stability of regional banks seized financial markets.
GQG Partners LLC and Egerton Capital UK LLP exited Schwab holdings valued at $1.4 billion and $791 million, respectively, by March 31, according to filings Monday.
Wellington Management Group sold 62% of its Schwab stake, leaving it with $1.6 billion worth of stock at the end of March. Investment giant TIAA-CREF reduced its Schwab holdings by 19%, leaving it with a $436 million stake.
Schwab shares plunged about 38% in the first quarter, as fear over unrealized losses at US regional banks spread. The firm, which runs both brokerage and bank businesses, grappled with shrinking deposits as customers moved cash into higher-interest accounts.
Meanwhile, the collapse of four US banks since March drew attention to unrealized losses on lenders’ balance sheets.
Other funds took Schwab’s share price plunge as a buying opportunity — including Two Sigma Investments, which added $158 million worth of the stock to its portfolio.
Raymond James analyst Patrick O’Shaughnessy upgraded his rating on the stock to outperform earlier Monday.
The Westlake, Texas-based firm reported Friday that it brought in $13.6 billion of net new assets in April, the lowest level of new assets since the same month a year ago.
Schwab has been working to assuage its shareholders and customers, with executives forecasting that deposit outflows will begin to abate this year.
Shares rose 4% to $50.94 at 4 p.m. in New York Monday.
By Annie Massa
