"Our investment thesis for our next largest bank investment, Wells Fargo, is totally different. As is well known, Wells Fargo & Company (NYSE:WFC) is the country's third-largest bank, serving one in three U.S. households. Years of regulatory missteps under prior managements resulted in reputational damage, higher-than-average expenses, numerous consent orders, caps on asset growth, all added to the negative impact of low rates on their interest income. However, where others see bad news, we see resiliency and gradual improvement. Wells Fargo's resiliency is reflected in the fact that despite years of terrible headlines and congressional hearings, Wells Fargo's core customers stayed put and customer attrition remains extraordinarily low. As to gradual improvement, new management has made steady headway in closing consent orders, settling regulatory matters and upgrading systems.