What Makes TFS Financial (TFSL) an Interesting Company?

Core Insights - Middle Coast Investing's third-quarter 2025 investor letter indicates a strong performance, with its portfolio outperforming the S&P 500 and other benchmarks year to date [1] - The US Portfolios returned 9.6% in Q3 2025, while the S&P 500 returned 7.8%, and Core U.S. portfolios returned 10% [1] - European Portfolios appreciated by 5.5% during the same period [1] Company Focus: TFS Financial Corporation - TFS Financial Corporation (NASDAQ:TFSL) is highlighted as a retail consumer banking services provider, with a one-month return of 1.04% and a 52-week gain of 9.11% [2] - As of October 6, 2025, TFS Financial Corporation's stock closed at $13.65 per share, with a market capitalization of $3.831 billion [2] - The company is noted for its 8%+ dividend yield, making it a viable bond replacement, especially in the context of recent interest rate cuts [3] Hedge Fund Interest - TFS Financial Corporation is not among the 30 most popular stocks among hedge funds, with 13 hedge fund portfolios holding the stock at the end of Q2 2025, down from 15 in the previous quarter [4] - While TFS Financial Corporation shows potential, the company is compared unfavorably to certain AI stocks that are believed to offer greater upside potential and less downside risk [4]