We initiated a position in Wells Fargo (WFC, Financial). Wells Fargo is the third largest bank in the U.S., with a best in class deposit franchise and a reputation as a conservative underwriter. Due to their much publicized scandal, ensuing regulatory issues and fines the stock now trades at approximately 65% of book value while its peers trade at price to book values between 0.8 and 1.2 times. It is our expectation that when this subsides its growth and profitability should return to previous levels.
From Charles de Vaulx (Trades, Portfolio)'s IVA Worldwide Fund third-quarter 2020 commentary.
