By: Manisha Sethi May. 17, 2018

Jacobs Asset Management, LLC SEC 13F filing, for the first quarter of 2018 on May 15 showed that the total portfolio value for the quarter was  $539. 79 million. The top 10 holdings of the investor, constituted 42.26% of the portfolio, with 7,42,277 shares in CIT Group Inc. amounting to $38.22 million. Jacobs Asset Management, LLC is an established money manager, based out of New York. It was founded in 1999 by Ryan Jacob. The firm focuses exclusively on investing in the financial sector.

Raltin analyzed new purchases of the investor from Q1 2014 and calculated their annual internal rate of return (IRR). The difference between the stocks IRR and SPY (SPDR S&P 500 ETF Trust) IRR showed that 41.54% of new stock purchases outperformed the S&P 500 more than 20% (detailed Raltin methodology is here). Only 22 new purchases out of 65 (between Q1 2014 & Q1 2018) underperformed the S&P 500. The below table shows new stock purchases by S&P Outperformance category.

S&P Outperformance CategoryNumber of New Stock Purchases% of total new purchases
>20%2741.54
10 to 20%69.23
0 to 10%1015.38
-10 to 0%913.85
-20 to -10%46.15
<-20%913.85
Total stocks65

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Jacobs Asset Management, LLC bought 8 new stocks in the most recent quarter, with Newmark Group Inc Class A (NMRK) and Ares Management L.P. (ARES) forming 2.06% and 1.59% of the portfolio respectively. The table below shows all the new buys of the investor in this quarter :-

StocksNumber of sharesHolding Value ($1000)
Newmark Group Inc. Class A (NMRK)733,18511,137
Ares Management L.P. (ARES)400,0008,560
United Financial Bancorp Inc. (UBNK)303,6534,919
Banner Corp. (BANR)85,0004,717
Athene Holding Ltd (ATH)75,0003,586
SB Financial Group Inc. (SBFG)166,6673,084
Sandy Spring Bancorp Inc. (SASR)36,8891,430
Medley Management Inc. (MDLY)89,093508

The following table shows the portfolio value of the investor for the last 5 quarters and the top holdings in each quarter that outperformed the S&P 500 IRR by at least 20%. Several new picks by the fund like Flagstar Bancorp, Apollo Global Management, Comerica Inc etc have dramatically outperformed the S&P 500.

PeriodTotal Portfolio Value ($Mn)Top Holdings (Ticker, % IRR difference from S&P 500)
Q1 2017468.623Flagstar Bancorp, Inc. (FBC, 13.99), Synovus Financial Corp. (SNV, 10.15)
Q4 2016472.522Square, Inc. (SQ, 135.58), Apollo Global Management LLC (APO, 53.7), First Bancshares, Inc. (The) (FBMS, 5.0)
Q3 2016377.672FB Financial Corporation (FBK, 71.04), Comerica, Inc. (CMA, 45.17), KeyCorp (KEY, 38.63)
Q2 2016333.656MGIC Investment Corp. (MTG, 72.81), Midland States Bancorp, Inc. (MSBI, 39.11), Wintrust Financial Corp. (WTFC, 34.45)
Q1 2016351.534Horizon Bancorp (HBNC, 44.4), First Interstate BancSystem, Inc. (FIBK, 26.25)