Money Managers Add to Bank Holdings amid Stock Market Dive


Money Managers Add to Bank Holdings amid Stock Market Dive

 


Money Managers Add to Bank Holdings amid Stock Market Dive
Peters, Andy, American Banker
Byline: Andy Peters
Investor concerns about a potential economic recession led to steep losses in the stock market last year, and bank stocks in particular were hit hard. Even so, several money managers increased their holdings in banking companies during the fourth quarter and added new investments in other banks.
The KBW Nasdaq Bank Index fell 1.3% in 2015, reflecting investor jitters about falling oil prices and low interest rates. In the fourth quarter, though, the index rose 5.3%. The largest banks have been especially hurt lately, with Bank of America, Citigroup and JPMorgan Chase all hitting 52-week lows in recent weeks.
Nonetheless, some institutional investors added to their bank holdings during the fourth quarter.
Stieven Capital Advisors in St. Louis, which invests primarily in bank stocks, bought new stakes in six banking companies in the quarter, including the $6.2 billion-asset Opus Bank in Irvine, Calif. Stieven also added a new position in the $961 million-asset Centrue Financial in Ottawa, Ill., buying about 630,000 shares, giving it a 9.7% stake in Centrue.
However, Stieven reduced its stake in the $12 billion-asset TFS Financial in Cleveland, its largest holding, selling about 351,000 shares. Additionally, Stieven sold about 107,000 shares of the $142 billion-asset Fifth Third Bancorp in Cincinnati; and it sold about 6,200 shares of the $26 billion-asset FirstMerit in Akron, Ohio. FirstMerit announced in January that it was being sold to the $71 billion-asset Huntington Bancshares in Columbus, Ohio, for $3.4 billion.
Mendon Capital Advisors in Rochester, N.Y., which also invests mostly in banks, increased its largest holding, in the $4.5 billion-asset Yadkin Financial in Raleigh, N.C. It bought 278,000 shares, giving it a 4.2% stake in the company.
Mendon bought new stakes in 39 companies in the quarter, including Opus Bank and General Electric’s credit card spinoff Synchrony Financial. Mendon also bought about 1 million shares of the $15 billion-asset Astoria Financial in Lake Success
Money Managers Add to Bank Holdings amid Stock Market Dive Money Managers Add to Bank Holdings amid Stock Market Dive Reviewed by adsgo on June 26, 2019 Rating: 5

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