Billionaire investor Ron Baron said he "modestly increased" his position in Charles Schwab, 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.
The 79-year-old founder of Baron Capital didn't disclose how much he purchased, according to the report.
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.
However, the broker said it has "access to significant liquidity" including an estimated $100 billion of cash flow with 80% of its deposits within the FDIC insurance limits.
Both Baron Capital and Charles Schwab did not respond immediately to Reuters' requests for comment.
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