In this article, we discuss the top 10 finance stock picks of Anton Schutz’s Mendon Capital Advisors. If you want to skip our detailed analysis of these stocks, go directly to Anton Schutz’s Mendon Capital Advisors Portfolio: Top 5 Finance Stocks.
Mendon Capital Advisors is a New York-based investment advisor, established in 1996, primarily focusing on the US financial services sector. Anton Schutz is the president, chief investment officer, and senior portfolio manager at Mendon Capital Advisors, and his keen knowledge of the finance industry, as well as the significant relationships he has fostered over more than 30 years of industry experience, have served him well in his quest to manage a successful portfolio.
Schutz completed his Bachelor’s in business administration and management from Franklin & Marshall College in 1986, and received his Master’s in business administration and finance from Fordham University by 1988. Schutz, in 1986, served as the vice president of Chase Manhattan Bank, where he was responsible for derivative instruments and structure portfolios, which he managed with a team of hedge fund managers and commodity trading advisors. Schutz remained with Chase Manhattan Bank till 1996, when he left to start his own investment advisory firm in New York. In 2000, Schutz joined Tucker Anthony, a Boston-based independent investment banking and brokerage firm, as the senior vice president, working with the firm for two years.
Schutz’s portfolio is heavily concentrated, with 93.08% of the stocks from the finance sector. With a top ten holdings concentration of 43.14%, the largest holding of Mendon Capital Advisors’ as of the 13F filings at the end of June this year is Live Oak Bancshares, Inc. (NASDAQ:LOB), which represents 7.58% of the firm’s portfolio.
Anton Schutz of Mendon Capital Advisors
Schutz controls over $293 million in managed 13F securities as of the second quarter, with the most notable stocks in his Q2 portfolio being Wells Fargo & Company (NYSE:WFC), Cowen Inc. (NASDAQ:COWN), Veritex Holdings, Inc. (NASDAQ:VBTX), and Live Oak Bancshares, Inc. (NASDAQ:LOB), among others discussed in detail below.
Our Methodology
Let’s take a look at the top 10 finance stock picks of Anton Schutz’s Mendon Capital Advisors. We consulted the Q2 portfolio of Mendon Capital Advisors to compile this list, ranking each stock as per the firm’s stake value in the company.
Why should we pay attention to Anton Schutz’s top stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Anton Schutz’s Mendon Capital Advisors Portfolio: Top Finance Stocks
10. PacWest Bancorp (NASDAQ:PACW)
Mendon Capital Advisors’ Stake Value: $7,931,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 2.70%
Number of Hedge Fund Holders: 29
PacWest Bancorp (NASDAQ:PACW) is a bank holding company, established in 1999, with its headquarters in California. PacWest Bancorp (NASDAQ:PACW) is primarily known for its wholly owned subsidiary, Pacific Western Bank, which operates 79 branches in California. Engaged in commercial banking, deposit and treasury management for small and mid-cap businesses, and offering commercial loans for the construction and real estate sectors, PacWest Bancorp (NASDAQ:PACW) is one of the top stock picks of Anton Schutz as of June this year.
Schutz, via Mendon Capital Advisors, owns 175,000 shares in PacWest Bancorp (NASDAQ:PACW), worth $7.93 million, representing 2.70% of the firm’s Q2 portfolio. Fisher Asset Management is the leading stakeholder in PacWest Bancorp (NASDAQ:PACW), with stakes worth $44.75 million. Overall, 29 hedge funds in the database of Insider Monkey were long PacWest Bancorp (NASDAQ:PACW), as of June this year.
PacWest Bancorp (NASDAQ:PACW) reported its Q3 earnings, with EPS for the period totaling $1.17 on October 18, beating estimates by $0.15. Revenue for the quarter came in at $331.12 million, exceeding estimates by $14.01 million.
Truist analyst Brandon King, on October 20, kept a Buy rating on PacWest Bancorp (NASDAQ:PACW), raising the price target from $50 to $55, owing to the Q3 earnings beat. The analyst also raised his EPS guidance for FY21 from $4.85 to $5.08, following a strong loan growth momentum.
9. FB Financial Corporation (NYSE:FBK)
Mendon Capital Advisors’ Stake Value: $8,498,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 2.89%
Number of Hedge Fund Holders: 13
A financial holding company from Tennessee, FB Financial Corporation (NYSE:FBK) is a top stock pick of Anton Schutz, who owns 198,195 shares in the company via Mendon Capital Advisors, worth $8.49 million, representing 2.89% of the investment firm’s Q2 portfolio. FB Financial Corporation (NYSE:FBK) operates through its wholly owned subsidiary, FirstBank, which has 81 full-service branches serving customers in Tennessee, North Alabama, Southern Kentucky, and North Georgia. The range of services offered by FB Financial Corporation (NYSE:FBK) include commercial banking, consumer banking, residential mortgage, and commercial loans.
As of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey’s elite funds were bullish on FB Financial Corporation (NYSE:FBK), up from 10 in the preceding quarter. Mendon Capital Advisors is the leading stakeholder in FB Financial Corporation (NYSE:FBK) as of June this year.
On October 18, FB Financial Corporation (NYSE:FBK) announced its Q3 results. EPS for the third quarter totaled $0.89, beating estimates by $0.07. FB Financial Corporation (NYSE:FBK)’s revenue came in at $148.24 million, exceeding estimated revenue by $9.61 million.
Jennifer Demba, a Truist analyst, on October 20, kept a Buy rating on FB Financial Corporation (NYSE:FBK), raising the price target from $46 to $52, following the Q3 earnings beat. She also believes that FB Financial Corporation (NYSE:FBK)’s loan pipeline is strong and has potential for growth in 2022.
In addition to Wells Fargo & Company (NYSE:WFC), Cowen Inc. (NASDAQ:COWN), Veritex Holdings, Inc. (NASDAQ:VBTX), and Live Oak Bancshares, Inc. (NASDAQ:LOB), FB Financial Corporation (NYSE:FBK) is a notable stock in Anton Schutz’s Q2 portfolio.
8. Origin Bancorp, Inc. (NASDAQ:OBNK)
Mendon Capital Advisors’ Stake Value: $9,742,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 3.31%
Number of Hedge Fund Holders: 12
A bank holding company from Louisiana, Origin Bancorp, Inc. (NASDAQ:OBNK) via its subsidiary, Origin Bank, offers financial products and services including commercial and personal loans, mortgage, line of credit, treasury management, and insurance, among other services. Origin Bancorp, Inc. (NASDAQ:OBNK) operates more than 43 banking centers across the US. Mendon Capital Advisors holds 230,046 shares in Origin Bancorp, Inc. (NASDAQ:OBNK), worth $9.74 million, representing 3.31% of the firm’s portfolio as of June this year.
Origin Bancorp, Inc. (NASDAQ:OBNK) reported on October 27 its Q3 earnings. EPS for the period came in at $1.14, beating estimates by $0.16. Revenue for Origin Bancorp, Inc. (NASDAQ:OBNK) totaled $68.46 million, exceeding estimated revenue by $0.26 million.
As of the end of June, 12 hedge funds reported owning stakes in Origin Bancorp, Inc. (NASDAQ:OBNK), up from 11 in the preceding quarter.
7. First BanCorp. (NYSE:FBP)
Mendon Capital Advisors’ Stake Value: $10,329,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 3.51%
Number of Hedge Fund Holders: 25
First BanCorp. (NYSE:FBP) is a top finance stock according to Anton Schutz’s Q2 portfolio, with Mendon Capital Advisors retaining 785,541 shares in the financial holding company, valued at $10.32 million, representing 3.51% of the firm’s portfolio as of June this year. First BanCorp. (NYSE:FBP) is headquartered in Puerto Rico, and operates via its two primary subsidiaries, namely FirstBank Puerto Rico and FirstBank Insurance Agency, Inc. First BanCorp. (NYSE:FBP) offers commercial and corporate banking, consumer banking, mortgage banking, as well as treasury and investment management services.
Wells Fargo analyst Timur Braziler, on November 9, kept a price target of $16 on First BanCorp. (NYSE:FBP), along with an Overweight rating. He believes First BanCorp. (NYSE:FBP) to be the second largest Puerto Rican bank, predicts that the stock valuation would increase in the future, owing to an improved lending outlook and increased profitability.
As of October 25, the Q3 EPS for First BanCorp. (NYSE:FBP) totaled $0.37, beating estimates by $0.10. Revenue for the quarter was reported as $214.69 million, exceeding analysts’ consensus estimates by $5.77 million. As of the second quarter of 2021, 25 hedge funds were long First BanCorp. (NYSE:FBP), with stakes worth $262.6 million.
6. Byline Bancorp, Inc. (NYSE:BY)
Mendon Capital Advisors’ Stake Value: $11,052,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 3.76%
Number of Hedge Fund Holders: 13
Byline Bancorp, Inc. (NYSE:BY) is a community and commercial Chicago-based bank, offering personal banking, catering to small businesses, commercial loans, and wealth management services. Anton Schutz, via Mendon Capital Advisors, owns 450,000 shares in Byline Bancorp, Inc. (NYSE:BY), worth over $11 million, representing 3.76% of the firm’s portfolio as of June this year.
Of the 873 hedge funds tracked by Insider Monkey, 13 funds were bullish on Byline Bancorp, Inc. (NYSE:BY), with stakes worth $36.8 million, up from 8 in the previous quarter, with an approximate stake value equaling $28.2 million.
Byline Bancorp, Inc. (NYSE:BY), on October 28, reported a Q3 EPS of $0.69, beating estimates by $0.13. Revenue for the quarter was $78.34 million, exceeding estimated revenue by $3.09 million.
In addition to Wells Fargo & Company (NYSE:WFC), Cowen Inc. (NASDAQ:COWN), Veritex Holdings, Inc. (NASDAQ:VBTX), and Live Oak Bancshares, Inc. (NASDAQ:LOB), Byline Bancorp, Inc. (NYSE:BY) is a notable stock in Schutz’s portfolio for the second quarter.
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Disclosure: None. Anton Schutz’s Mendon Capital Advisors Portfolio: Top 10 Finance Stocks is originally published on Insider Monkey.
