By: Manisha Sethi Sep. 10, 2018
Banc Funds Co LLC reported its SEC 13F filings for Q1 2018 on May 11. The reported value of its portfolio is $1953.96 million, with the top 10 holdings accounting for 18.52%. Of the top holdings, Mercantile Bank Corp. (MBWM) and Peapack Gladstone Financial Corp. (PGC) account for 2.48% and 2.20% of the investor’s portfolio respectively. Banc Funds Company LLC was founded in 1986 and is based in Chicago, Illinois. Mr. Charles Joseph Moore is the founder and president of the firm. The leading investor in subregional financial services in the US, the firm primarily invests in small banks, life insurance companies, and other financial institutions.
Raltin recently analyzed new buys by the investor from Q1 2014 to Q1 2018 and calculated their internal rate of return (IRR). Findings show that 50 stocks out of 76 new purchases outperform S&P 500 while only 6 underperform the index by more than 20%. The details of Raltin’s methodology are given here. The table below shows the performance of the new purchases with respect to S&P 500.
|S&P outperformance category||Number of New Stock Purchases||Total New Purchases (%)|
|10 to 20%||14||18.42|
|0 to 10%||20||26.32|
|-10 to 0%||15||19.74|
|-20 to -10%||6||7.89|
Banc Funds bought 12 new scrips this quarter, including Franklin Financial Services, Towne Bank, and Highlands Bancorp Inc. The table below shows all the new buys for Q1 2018, along with their holding value and number of shares.
|Stocks||Number of shares||Holding Value ($1000)|
|Franklin Financial Services Corp. (FRAF)||133,559||4,880|
|Towne Bank (TOWN)||158,108||4,522|
|Centric Financial Corporation (CFCX)||372,992||3,394|
|Highlands Bancorp Inc. (HSBK)||230,720||3,057|
|SB Financial Group Inc. (SBFG)||138,889||2,569|
|Freedom Bank of Virginia (FDVA)||179,059||2,271|
|Bridgewater Bancshares Inc. (BWB)||100,000||1,307|
|Grand River Commerce Inc. (GNRV)||181,819||1,089|
|Greater Hudson Bank (GHDS)||189,149||965|
|First Reliance Bancshares (FSRL)||84,792||627|
|First Farmers and Merchants Corporation (FFMH)||12,500||498|
|Citizens Community Bancorp Inc. (CZWI)||23,000||322|
The table below shows the investor’s portfolio value for the past five quarters starting from Q1 2017. In addition to this, it identifies the top 3 stocks that have significantly outperformed the S&P 500: FB Financial Corporation, Pacific Premier Bancorp Inc. and Towne Bank.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q3 2016||1,810.54||FB Financial Corporation (FBK, 71.04), Pinnacle Financial Partners, Inc. (PNFP, 7.67), Chemical Financial Corp. (CHFC, 2.28)|
|Q1 2016||1,589.89||Pacific Premier Bancorp, Inc. (PPBI, 65.69), Towne Bank (Portsmouth, VA) (TOWN, 54.13), German American Bancorp Inc. (GABC, 32.31)|