Ron Baron, founder of Baron Capital
Anjali Sundaram | CNBC
Longtime investor Ron Baron said he bought the dip Karl Schwab during Monday’s double-digit sell-off, reported CNBC’s Becky Quick.
The 79-year-old investor said he had “modestly increased” his position in the financial name as he saw Monday’s pullback as a buying opportunity. He did not reveal how much he bought. Baron Capital owned 7.8 million shares as of December 31.
The stock rose 9.2% on Tuesday.
Schwab shares fell 11.6% on Monday as investors dumped the financial institution amid fears of a banking crisis following the collapse of tech-focused Silicon Valley Bank and crypto-related Signature Bank.
The Westlake, Texas-based financial firm defended its financial position, saying it has ample access to liquidity and a low loan-to-deposit ratio. Schwab was hit along with other financial companies with massive bond holdings at longer maturities.