Is it Still Worthy to Invest in Credit Suisse (CS)?

Claret Asset Management, an asset management firm, published its third quarter 2022 investor letter – a copy of which can be downloaded here. According to the fund, higher interest rates will eventually act as a brake to this economy on steroids that is mainly funded through extreme fiscal largesse and printed money by central banks. The fund invests in companies with real business models that are well-run, have great prospects, and generate positive cash flows for the foreseeable future. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Claret Asset Management mentioned Credit Suisse Group AG (NYSE:CS) and explained its insights for the company. Founded in 1856, Credit Suisse Group AG (NYSE:CS) is a Zürich, Switzerland-based investment banking company with an $11.7 billion market capitalization. Credit Suisse Group AG (NYSE:CS) delivered a -53.01% return since the beginning of the year, while its 12-month returns are down by -57.14%. The stock closed at $4.53 per share on October 13, 2022.

Here is what Claret Asset Management has to say about Credit Suisse Group AG (NYSE:CS) in its Q3 2022 investor letter:

“We also mention that before the bear market is over, we could witness some sort of credit event. Credit Suisse could be one of them. It is almost unthinkable that a Swiss giant in finance can manage to destroy itself through speculative and dumb decisions/acquisitions made by incompetent management throughout the 90s and the 2000s. Shareholders paid a hefty price, having witnessed a stock price of CHF 65 in 2007 diving toward today’s CHF 4. Then again, anything can happen in finance, especially when stupidity is compounded by over Leverage and il Liquidity, the same L squared we mentioned in the last letter.”


Our calculations show that Credit Suisse Group AG (NYSE:CS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Credit Suisse Group AG (NYSE:CS) was in 9 hedge fund portfolios at the end of the second quarter of 2022, compared to 10 funds in the previous quarter. Credit Suisse Group AG (NYSE:CS) delivered a -13.88% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Credit Suisse Group AG (NYSE:CS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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Disclosure: None. This article is originally published at Insider Monkey.

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