Here’s What Makes ServisFirst Bancshares (SFBS) A Great Investment Opportunity

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned 23.2% in 2021. This compares to a 28.3% return for the Russell 2000 Value Index during the year. During the fourth quarter, the Russell 2000 Value Index rallied sharply early, fell off sharply from early November through mid-December, and then rallied during the last two weeks of the year to finish up 4.4%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

FPA Queens Road Small Cap Value Fund, in its Q4 2021 investor letter, mentioned ServisFirst Bancshares, Inc. (NASDAQ: SFBS) and discussed its stance on the firm. ServisFirst Bancshares, Inc. is a Birmingham, Alabama-based bank holding company with a $4.8 billion market capitalization. SFBS delivered a 4.76% return since the beginning of the year, while its 12-month returns are up by 71.02%. The stock closed at $88.98 per share on March 03, 2022.

Here is what FPA Queens Road Small Cap Value Fund has to say about ServisFirst Bancshares, Inc. in its Q4 2021 investor letter:

“ServisFirst Bancshares, a full-service commercial bank, continued to increase its deposits and loans during the quarter. In spite of growing assets from $10 billion to $15 billion over the last 18 months, we believe the company is poised for more growth – it has a record-high loan pipeline and continues to hold $4.5 billion in cash at the Federal Reserve as of 12/31/2021. As one of the largest holdings in the portfolio, we remain confident in the company’s long-term prospects.”

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Our calculations show that ServisFirst Bancshares, Inc. (NASDAQ: SFBS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SFBS was in 10 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 8 funds in the previous quarter. ServisFirst Bancshares, Inc. (NASDAQ: SFBS) delivered an 8.92% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on SFBS 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.