Cedar Creek Partners LLC, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund recorded a quarterly portfolio return of 6.4% for the fourth quarter of 2021, outperforming the NASDAQ Index, which delivered an 8.3% return for the same period. The fund also outperformed the S&P 500 (SPY) Index’s 11.1% return but outperformed the Russell Micro Cap’s -2.7% return. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Cedar Creek Partners, in its Q4 2021 investor letter, mentioned BM Technologies, Inc. (NYSE: BMTX) and discussed its stance on the firm. Founded in 2015, BM Technologies, Inc. is a United States-based banking services provider with a $113.2 million market capitalization and is currently spearheaded by its CEO, Luvleen Sidhu. BMTX delivered a 0.76% return since the beginning of the year, while its 12-month returns are down by -21.95%. The stock closed at $9.28 per share on March 10, 2022.
Here is what Cedar Creek Partners has to say about BM Technologies, Inc. in its Q4 2021 investor letter:
“BM Technologies (BMTX) had quite a ride during the fourth quarter. We profiled the stock in our Q3 letter. The price of the common rose from $8.90 to $9.21 in the quarter, which sounds boring, but the stock reached a high of $14.12 in mid-November. We were a big buyer early in October under $8.50 for the common and at $1.30 for the warrants. We trimmed roughly one fourth of the common position between $13.60 and $13.65, and over a third of the warrants at $3.90. We repurchased some common shares between $9 and $9.50 late in the quarter. While not a fan of the taxes on short term gains, we prefer short term gains to no gains.
BMTX has developed a fintech banking platform which provides digital banking and disbursement services to consumers and students in the United States. It facilitates deposits and banking products and services between customers and partner banks. The company provides access to a suite of banking products, including checking, savings, personal loans, credit cards, and student refinancing. They are not a traditional bank. It is a white label platform for other companies such as T-Mobile. During the fourth quarter they announced plans to acquire a bank in the Puget Sound area. It will be interesting to see if the acquisition of the bank will allow it to capture a bigger piece of the revenues that they are currently sharing with Customers Bancorp (CUBI), or if they will pursue both models.”
Our calculations show that BM Technologies, Inc. (NYSE: BMTX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. BMTX was in 9 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 6 funds in the previous quarter. BM Technologies, Inc. (NYSE: BMTX) delivered a -12.54% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on BMTX in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
