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Do You Think New York Community Bank’s (NYCB) Report Has Affected Investors’ Perception of Regional Banks?

Gator Capital Management, an asset management company, recently released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. The fund delivered a solid return in the first quarter and performed in line with the broader market but trailed the Financials sector benchmark. The fund returned 10.72% in the quarter compared to 10.56% and 11.68% returns for the S&P 500 Total Return Index and S&P 1500 Financials Index, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Gator Capital Management featured stocks like New York Community Bancorp, Inc. (NYSE:NYCB) in the first quarter 2024 investor letter. Headquartered in Hicksville, New York, New York Community Bancorp, Inc. (NYSE:NYCB) is a bank holding company for Flagstar Bank. On May 17, 2024, New York Community Bancorp, Inc. (NYSE:NYCB) stock closed at $3.69 per share. One-month return of New York Community Bancorp, Inc. (NYSE:NYCB) was 18.27%, and its shares lost 66.15% of their value over the last 52 weeks. New York Community Bancorp, Inc. (NYSE:NYCB) has a market capitalization of $3.028 billion.

Gator Capital Management stated the following regarding New York Community Bancorp, Inc. (NYSE:NYCB) in its first quarter 2024 investor letter:

“The recent turmoil at New York Community Bancorp, Inc. (NYSE:NYCB) has dragged down the stocks of small-to-mid-sized banks again this year. The exchange traded fund for mid-sized banks, the SPDR S&P Regional Banking ETF (“KRE”), underperformed the ETF for large banks, which is the Invesco KBW Bank ETF (“KBWB”) in the 1st quarter. The KRE was down 3.33% while the KBWB was up 10.01%. The underperformance of the mid-sized banks versus the large banks continued in April. Large banks are perceived by investors as having less credit risk, more robust credit reserves, and more liquid balance sheets.

At the end of January, New York Community Bank (“NYCB”) reported Q4 earnings. The surprisingly bad earnings report caused the stock to decline 37% in one day. The stock has continued to slide despite a $1 billion recapitalization led by former Secretary of Treasury Steven Mnuchin.

NYCB’s poor earnings report and stock price decline in January was a catalyst for the entire regional bank sector underperforming so far in 2024. Through March 31st, the SPDR S&P Regional Bank ETF (“KRE”) was down 3.33% versus the S&P 1500 Financials Sector Index which rose 11.67%. The January earnings season was constructive, but NYCB’s report changed investor sentiment on the regional banks. The question presented to us as bank investors is “Are NYCB’s problems idiosyncratic or systemic to all banks?”…” (Click here to read the full text)

A busy street corner with an ATM located conveniently in the corner, emphasizing the ATM locations.

New York Community Bancorp, Inc. (NYSE:NYCB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held New York Community Bancorp, Inc. (NYSE:NYCB) at the end of the fourth quarter which was 35 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

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Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

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This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

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China’s terrifying internet “Master Key”… and the one microcap that could stop them

In August 2024, news outlets around the world revealed one of the most shocking data breaches in recent history.

Approximately 2.9 billion records, including names, email addresses, phone numbers, mailing addresses, financial data and, distressingly, Social Security numbers, were stolen when Coral Springs, Florida, firm National Public Data (NPD) suffered a massive cyberattack. The company confirmed that the breach, which happened in December 2023, resulted in the potential leaks of data in the summer of 2024.

Nearly every day in the news, we hear about yet another damaging data breach or ransomware attack that puts valuable data — including yours — into the hands of hackers. And the number of attacks is soaring — up 30% year over year according to the latest numbers.

As bad as this is, it’s a day at the beach compared to what’s coming.

That’s because hostile nations across the globe — including Iran, North Korea, Russia and Communist China are going all-out to develop a breakthrough technology that will unlock what I call the “Master Key” to the Internet.

If they succeed in harnessing this groundbreaking “Master Key” technology, the consequences could be catastrophic.

Click to continue reading…