By: Manisha Sethi Jun. 18, 2018

On May 15, 2018,  Context BH Capital Management, LP (CBHCM) reported its SEC 13F filings for the first quarter of the calendar year. Their portfolio value is estimated at $321.416 million, which is a 15% increase from Q4 2017. Further, the institutional investor bought 10 new stocks this quarter, including PacWest Bancorp (PACW), First Bancorp (FBNC), and First Busey Corporation (BUSE).CBHCM  is an investment management firm based out of Bala Cynwyd, Pennsylvania. The firm focuses on community and regional banking sectors and its services include portfolio management, financial planning, and investment advisory services.

Raltin found that 80% of new stock purchases by CBHCM  the S&P 500. 51.75% of all stocks or about 59 new stock purchases (between Q1 2014 & Q1 2018) outperformed the S&P 500 by more than 20%. Only 13 stocks of 114 total stocks (about 11% of total) underperformed the S&P 500 by more than 10%. A detailed background on Raltin’s methodology is given here. The below table classifies CBHCM’s stock in various S&P outperformance categories.  

CategoryNo. of new purchases in CategoryTotal New Purchases (%)
>20%5951.75
10 to 20%2017.54
0 to 10%1311.4
-10 to 0%97.89
-20 to -10%54.39
<-20%87.02
Total Stocks114

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CBHCM  bought 10 new stocks this quarter. PacWest Bancorp and First Bancorp forms 2.99% and 0.88% of the portfolio value. The following table lists the investor’s new purchases for Q1 2018.

StocksNo. of SharesHolding Value ($1,000)
PacWest Bancorp (PACW)197,3929,777
First Bancorp (FBNC)80,7472,879
Sandy Spring Bancorp, Inc. (SASR)67,2972,608
OP Bancorp (OPBK)125,7151,565
Mid Penn Bancorp, Inc. (MPB)30,278967
First Busey Corporation (BUSE)19,255572
United Bankshares, Inc. (UBSI)10,785380
Hanmi Financial Corp (HAFC)11,900366
Hawthorn Bancshares, Inc. (HWBK)16,120335
Bridge Bancorp, Inc. (BDGE)6,200208

The following table shows the investor’s portfolio value for the past five quarters starting from Q1 2017.

PeriodTotal Portfolio Value ($Mn)Top Holdings (Ticker, % IRR difference from S&P 500)
Q4 2016242.121Oak Valley Bancorp (OVLY, 36.44).
Q3 2016153.31Central Federal Corp. (CFBK, 55.69) Bancorp of New Jersey, Inc. (BKJ, 43.64) Riverview Bancorp, Inc. (RVSB, 40.13)
Q2 2016138.217Fidelity Southern Corp. (LION, 30.46) Great Southern Bancorp, Inc. (GSBC, 29.28) Towne Bank (Portsmouth, VA) (TOWN, 26.83)
Q1 2016148.161Pacific Premier Bancorp, Inc. (PPBI, 65.69) Preferred Bank (Los Angeles, CA) (PFBC, 62.68) Peoples Utah Bancorp (PUB, 52.38)