Is First Citizens BancShares (FCNCA) an Undervalued Opportunity?

Broyhill Asset Management, a Charlotte-based investment firm, recently released its Q2 2026 investor letter, pointing to First Citizens BancShares, Inc. (NASDAQ:FCNCA) as a potentially undervalued investment opportunity. The letter highlights that FCNCA, which manages First-Citizens Bank & Trust Company, has retired nearly 20% of its Class A shares since July 2024.

With a market capitalization of $25 billion, FCNCA's assets include a substantial rail leasing fleet of around 128,000 cars, currently valued at bank multiples. The management team at FCNCA is considered competent and shareholder-aligned, with the Holding family owning over 20% of the company and controlling roughly half of the vote through their Class B shares.

The letter suggests that two separations have already completed, and both Masco and FCNCA are actively retiring shares, improving per-share value regardless of changes in market multiples. Despite being absent from the list of the 40 Most Popular Stocks Among Hedge Funds, FCNCA has maintained a presence in 38 hedge fund portfolios since the second quarter, compared to 35 in the previous quarter.

While FCNCA is seen as an undervalued investment, the letter advises that AI stocks could provide greater upside potential with less downside risk.