By: Manisha Sethi Jun. 20, 2018

Maltese Capital Management LLC disclosed its SEC 13F filings on May 11, 2018, and reported a portfolio value of $1,466.38 million. The top 10 holdings account for about 21.67% of the company’s portfolio. Maltese Capital Management’s largest holding is 4,06,045 shares of Comerica, Inc. Maltese Capital Management LLC, formerly known as Sandler O’Neill Asset Management LLC, was founded by Terry Anthony Maltese in 1996 and is based out of New York. The firm focuses on financial services companies and operates as an investment management firm. It provides research, valuation, analyses, and other financial services to pooled investment vehicles and invests in US public equity markets. Further, it conducts fundamental analysis to make its investments and performs in-house research.

According to a recent Raltin analysis, about 54.77% or 178 new stock purchases by Maltese Capital Management outperform S&P 500, whereas 45.24% or 147 new stock purchases (from Q1 2014 to Q1 2018) underperform the index. Out of 325 new buys, 119 outperform the index by more than 10% and only 36 underperform it by more than 20%. Raltin’s detailed methodology to calculate S&P 500 outperformance can be found here. The following table lists the total number of new stock purchases and various S&P outperformance categories.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
>20%7523.08
10 to 20%4413.54
0 to 10%5918.15
-10 to 0%6620.31
-20 to -10%4513.85
<-20%3611.08
Total stocks325
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Maltese Capital Management LLC bought 42 new stocks from the financial sector in the recent quarter. Of these new purchases, U.S. Bancorp (USB) and Raymond James Financial, Inc. (RJF) account for 2.10% and 1.02% of the company’s portfolio. The next table elaborates on the top 20 new purchases as well as the number of shares and holding value.

StocksNumber of sharesHolding value ($1,000)
U.S. Bancorp (USB)6,00,00030,300
Raymond James Financial, Inc. (RJF)1,65,00014,753
SVB Financial Group (SIVB)46,40011,136
JPMorgan Chase & Co. (JPM)95,00010,447
PNC Financial Services Group, Inc. (The) (PNC)65,0009,831
Great Western Bancorp, Inc. (GWB)165,0546,647
BrightSphere Investment Group plc (BSIG)418,9006,602
Ares Management, L.P. (ARES)295,6006,326
Heritage Commerce Corp. (HTBK)370,0006,098
Texas Capital Bancshares, Inc. (TCBI)65,0125,845
Citizens Financial Group, Inc. (CFG)125,0005,248
Assurant, Inc. (AIZ)55,0005,028
First Busey Corporation (BUSE)165,0004,904
Bridgewater Bancshares, Inc. (BWB)350,0004,575
Voya Financial, Inc. (VOYA)75,0003,788
SB Financial Group, Inc. (SBFG)181,2033,353
Union Bankshares Corp (UBSH)90,0003,304
Shore Bancshares, Inc. (SHBI)175,0003,301
Southern National Bancorp of Virginia, Inc. (SONA)207,8003,292
NVR, Inc. (NVR)1,1583,242

The following table shows Maltese Capital Management LLC’s portfolio value from Q1 2017 to Q1 2016 and the top holdings in each quarter that outperform the S&P 500 IRR. Several new buys outperform the index; in particular, PayPal Holdings, Inc. (PYPL), American Financial Corp. (The) (FAF), Tri Pointe Homes, Inc. (TPH), Plumas Bancorp (PLBC), and Civista Bancshares, Inc. (CIVB) outperform the index by more than 20%.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017926.059PayPal Holdings, Inc. (PYPL, 64.97), First American Financial Corp. (The) (FAF, 37.89), Bank of N.T. Butterfield & Son Limited (The) (NTB, 29.12)
Q4 20161110.84Tri Pointe Homes, Inc. (TPH, 36.85), Vivendi Universal ADS (1 ORD ) (V, 26.85), Air Lease Corporation (AL, 20.77)
Q3 2016826.008Plumas Bancorp (PLBC, 88.31), SVB Financial Group (SIVB, 53.3), TriCo Bancshares (TCBK, 36.2)
Q2 2016800.852Walker & Dunlop, Inc. (WD, 98.93), Evercore Partners, Inc. (EVR, 44.11), Radian Group Inc. (RDN, 41.48)
Q1 2016770.44Civista Bancshares, Inc. (CIVB, 100.23), TowneBank (Portsmouth, VA) (TOWN, 54.13), Keycorp (KEY, 46.35)