Sat, Aug 18, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

As bank stocks slide an investor finds opportunity

Thursday, May 24, 2018

Bailey McCann, Opalesque New York:

Banks have been a popular sector for hedge funds over the past few years. Managers that got in when banks were still in recovery mode have been able to ride the bounce back. But now, just as retail investors are starting to see the potential in banks, one fund is taking a step back and even shorting some of the stocks.

St. Louis-based FourthStone is a buy-and-hold bank fund that has been putting up high double-digit returns since 2012, by betting on banks and thrifts of all sizes. That rally may finally be losing some steam. "We have to be more disciplined than in recent years when evaluating a bank's return potential," Stone tells Opalesque. "Some names are at historic highs and it's tough to see significant upside during the next year given where we are in the cycle. That makes us a bit contrarian because there is strong retail interest in banks right now."

Stone may be on to something. Bank earnings beat market expectations in the first quarter, but bank stocks still took a hit. While the headline numbers looked good, banks haven't been doing much business and investors want to see more. As a result, bank stocks have been drifting downward in recent weeks. Even news that would seem to be good for banks, hasn't been able to stop the slide. Bank stocks were down broadly on Wednesday following news that Congress had successfully rolled back parts of Dodd-Frank. Bank of America, Citigroup and JP Morgan Chase were all down......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing: Investors haven't been this bullish on U.S. stocks since 2015, U.S. hedge funds bet on retail, tech in second-quarter as economy sizzled, The world's largest hedge fund loads up on Alibaba, An $84bn hedge fund used Facebook's struggles to build a massive stake, Jana Partners jumps back into Facebook, adds stakes in Alibaba, Wells Fargo, Einhorn's Greenlight Capital slashes stakes in Apple, Twitter and Micron,Tiger, Tremblant, Columbus went big on Twitter before earnings[more]

    Investors haven't been this bullish on U.S. stocks since 2015 From Bloomberg: The bull run that has taken U.S. equities to record highs this year may be about to reach its peak, according to the latest survey of fund managers by Bank of America Merrill Lynch. Allocations to U.S. stock

  2. Activists: Elliott lawyer warns Korea better brace for activist funds, Activist hedge fund is seeking operational improvements at the antivirus company, Eddie Lampert details $500m offer for Sears's assets, Nielsen should get a break from the market[more]

    Elliott lawyer warns Korea better brace for activist funds From Bloomberg: The lawyer who advised billionaire Paul Singer in his proxy fight against Samsung Group says he's seeing a surge of interest from activist investors who view South Korea's businesses as potential targets. In

  3. New Zealand to VCs and hedge fund managers buying up its land: No more, Related news: New Zealand has banned the sale of homes to foreigners after too many people started treating the island like their doomsday hideout[more]

    New Zealand to VCs and hedge fund managers buying up its land: No more From Tech Crunch: Over the last couple of years, a once well-kept secret began to gain traction in New York media outlets: wealthy American investors, including VCs and hedge fund managers, had begun snapping up tracts

  4. Blockchain Board of Derivatives, world's first hybrid crypto trading platform launched[more]

    Laxman Pai, Opalesque Asia: The world's first hybrid cryptocurrency derivatives trading platform, Blockchain Board of Derivatives (BBOD), has been launched in partnership with GMEX Technologies. Traders all around the globe can now have access to this platform which makes it easier for trade

  5. Leon Cooperman's challenge of giving away $1bn[more]

    From Bloomberg: Leon Cooperman, founder of hedge fund Omega Advisors Inc., has a billion-dollar problem. Over the course of his career, he has accumulated lots of money. He now plans on giving it all away during his lifetime. This turns out to be much more challenging than it might seem. First,