By: Manisha Sethi Jun. 08, 2018
Basswood Capital Management, L.L.C. disclosed it SEC 13F filing for Q1 2018 on May 15 and reported a portfolio value of $2,320.83 million. Its top 10 holdings account for 32.19% of the portfolio and its largest shareholding is 54,19,109 shares of Ally Financial, which amount to $147.12 million. In addition, the investor reports a total of 171 holdings including 37 new investments. Basswood Capital Management, L.L.C. was founded in 1998 and is based in New York. The firm primarily invests in public equity and fixed income markets across the globe and uses a fundamentally driven approach to make investments. It offers its services to pooled investment vehicles.
An analysis by Raltin shows that 59.47% of Basswood Capital Management’s new stock purchases outperform the S&P 500. About 27.45% of all stocks or 42 new stock purchases outperform the S&P 500 by more than 20% between Q1 2014 and Q1 2018. Only 37 of the 153 total stocks (or 24% of the total) underperform the S&P 500 by more than 10%. Details of Raltin’s methodology are available here. The following table classifies Basswood Capital Management’s stock on the basis of S&P outperformance categories.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|-20 to -10%||21||13.73|
Basswood Capital Management bought 37 new stocks across diverse sectors this quarter. Among its new purchases, Luther Burbank Corporation and Dime Community Bancshares, Inc. account for 0.81% and 0.64% of the portfolio value. The following table lists the investor’s top 20 new purchases for Q1 2018.
|Stocks||No. of shares||Holding value ($1,000)|
|Luther Burbank Corporation (LBC)||1,572,070||18,881|
|Dime Community Bancshares, Inc. (DCOM)||811,012||14,923|
|Hancock Holding Co. (HBHC)||239,601||12,387|
|Bank of Commerce Holdings (BCOH)||587,693||6,847|
|Franklin Financial Network Inc. (FSB)||194,968||6,356|
|DNB Financial Corp. (DNBF)||174,076||6,206|
|MidWestOne Financial Group, Inc. (MOFG)||168,906||5,623|
|Bridgewater Bancshares, Inc. (BWB)||361,614||4,726|
|NCR Corp. (NCR)||125,642||3,960|
|OP Bancorp (OPBK)||296,402||3,690|
|Byline Bancorp, Inc. (BY)||134,180||3,077|
|Fidelity Southern Corp. (LION)||132,870||3,065|
|Enterprise Bancorp, Inc. (EBTC)||80,743||2,849|
|RBB Bancorp (RBB)||103,294||2,724|
|QCR Holdings, Inc. (QCRH)||55,550||2,491|
|Heritage Financial Corp. (HFWA)||62,272||1,906|
|REV Group, Inc. (REVG)||77,256||1,604|
|First Bancshares, Inc. (FBMS)||48,283||1,557|
The next table presents the investor’s portfolio value for the past five quarters, that is, from Q1 2016 to Q1 2017, with the top 3 holdings in each period that outperform the S&P 500.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % Of IRR difference from S&P 500)|
|Q1 2017||1,965.82||Coastway Bancorp, Inc. (CWAY, 43.27), Live Oak Bancshares, Inc (LOB, 16.83), Flagstar Bancorp, Inc. (FBC, 13.99)|
|Q4 2016||2,273.68||Bay Bancorp, Inc. (BYBK, 66.1), Ally Financial Inc. (ALLY, 34.05), Korn/Ferry International (KFY, 21.29)|
|Q3 2016||2,094.32||Dana Incorporated (DAN, 63.44), Marlin Business Services Corp. (MRLN, 32.31), M & T Bank Corp. (MTB, 22.64)|
|Q2 2016||1,727.91||Heritage Financial Corp. (HFWA, 35.31), OceanFirst Financial Corp. (OCFC, 33.83), Ameriprise Financial, Inc. (AMP, 26.24)|
|Q1 2016||1,846.16||Zions Bancorporation (ZION, 58.78), East West Bancorp, Inc. (EWBC, 44.19), Wintrust Financial Corp. (WTFC, 41.18)|
From the table, it is clear that the new purchases including Zions Bancorporation (ZION); Heritage Financial Corporation (HFWA); Dana Incorporated (DAN); Bay Bancorp, Inc. (BYBK); and Coastway Bancorp, Inc. (CWAY) outperform the index across the studied quarters.