Gator Capital Management, an asset management company, recently released its first-quarter investor letter. A copy of the same can be downloaded here. The fund trailed the broader benchmarks in the first quarter while outperformed the financials sector benchmark. Gator Financial Partners returned 1.72% in the quarter compared to 7.50% for the S&P 500 Total Return Index and -5.92% for the S&P 1500 Financials Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Gator Capital Management highlighted stocks SVB Financial Group (OTC:SIVBQ) in the first quarter 2023 investor letter. Headquartered in Santa Clara, California, SVB Financial Group (OTC:SIVBQ) is a diversified financial services company. On June 9, 2023, SVB Financial Group (OTC:SIVBQ) stock closed at $0.3038 per share. One-month return of SVB Financial Group (OTC:SIVBQ) was -37.37%, and its shares lost 99.93% of their value over the last 52 weeks. SVB Financial Group (OTC:SIVBQ) has a market capitalization of $17.984 million.
Gator Capital Management made the following comment about SVB Financial Group (OTC:SIVBQ) in its first quarter 2023 investor letter:
“The bank run by depositors on SVB Financial Group (OTC:SIVBQ) was shocking. After the bank announced an equity offering and the sale of a portfolio of mortgage-backed securities (“MBS”) on March 8th , depositors withdrew $40 billion in a single day on March 9th and made requests to withdraw another $100 billion on March 10th. Since SIVB did not have enough cash to meet these depositor requests, bank regulators shut down the bank the morning of March 10th. SIVB went from having a $16 billion stock market valuation on the afternoon of March 8th, to getting closed and placed into FDIC receivership by the morning of March 10th.
SIVB was primarily focused on the venture capital community. Venture capital investors and their portfolio companies comprised the majority of their customer base. As a result, the deposit base was much more concentrated than that of an average regional bank. An estimated 95% of SIVB’s deposits were not insured by the FDIC. When the venture capital firms decided to withdraw their deposits from SIVB, they strongly suggested to the management teams of their portfolio companies that they also withdraw their deposits. The combination of a concentrated depositor base, rapid spread of information over social media, and the easy accessibility of bank transfers on mobile phone apps led to a rapid drain on deposits from SIVB…” (Click here to read the full text)
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SVB Financial Group (OTC:SIVBQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held SVB Financial Group (OTC:SIVBQ) at the end of first quarter 2023 which was 45 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 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.
