(Reuters) – Asset management firm Baron Capital bought stock of Charles Schwab on Monday, CNBC reported on Tuesday, aiming to buy a dip in its shares amid a meltdown in financial stocks.
Shares of the broker jumped 13% to $58.6 in premarket trading, recouping losses a day after falling 12% to their lowest since November 2020.
On Monday, the Texas-based Charles Schwab reported a 28% decline in average margin balances and a 4% fall in total client assets for February, piling more pressure on the financial services firm amid fears over the fallout from Silicon Valley Bank’s collapse.
Both Baron Capital and Charles Schwab did not respond immediately to Reuters’ requests for comment.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Krishna Chandra Eluri)
