Interesting Ideas From an Activist Fund
Over the weekend, I spent quite a bit of time digging through a pile of stock of reports and one 13HF filing really stood out. I have interviewed and discussed the folks at PL Capital several times in the past year. The firm engages in bank stock investing with an activist twist and has produced some stellar results. For 2012, its fund was up more than 40% because the portfolio of primarily small regional and community banks paid off for the firm. Since its inception, the fund has better than doubled the overall market return with its unique approach to bank stock investing.
From its 13F filing, I cannot spy out their buying and selling activity, but I can spot its largest positions and highlight some of its focus areas. The firm has a decently sized stake in some of the larger banks as its members apparently believe they are cheap at current levels. They also have stakes in the 2018 warrants for Comerica (CMA), Capital One (COF)and PNC Financial (PNC). I like the warrants especially on market declines, as this not only give you a bet on banks for the next five years, but these will also appreciate if volatility should pick up substantially. PL Capital also has outright positions in the big banks, including Citigroup (C), JPMorgan (JPM), Bank of America (BAC) and Wells Fargo (WFC)....504 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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