Is it Risky to Invest in Signature Bank (SBNY)?

Akre Focus Fund, an investment management company, released its first quarter 2023 investor letter, a copy of the same can be downloaded here. The Akre Focus Fund’s first quarter 2023 performance for the Institutional share class was 5.91% compared with S&P 500 Total Return at 7.50%. Performance for the trailing 12-month period ending March 31, 2023, for the Institutional share class was –7.86% compared with S&P 500 Total Return at -7.73%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2023.

In its Q1 2023 investor letter, Akre Focus Fund mentioned Signature Bank (NASDAQ:SBNY) and explained its insights for the company. Founded in 2001, Signature Bank (NASDAQ:SBNY) is a United States-based commercial banking company with a $12.1 million market capitalization. Signature Bank (NASDAQ:SBNY) delivered a -99.83% return since the beginning of the year, while its 12-month returns are down by -99.93%. The stock closed at $0.19 per share on April 19, 2023.

Here is what Akre Focus Fund has to say about Signature Bank (NASDAQ:SBNY) in its Q1 2023 investor letter:

“The signature events of the first quarter were the sudden collapse and seizure of Silicon Valley Bank, Signature Bank (NASDAQ:SBNY), and Credit Suisse (CS). Aftershocks may topple more banks and, in any case, the widespread deposit flight that ensued is apt to slow economic growth via reduced bank lending. Ironically, this may help the Federal Reserve’s fight against inflation, but at the expense of heightened recession risk.”

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Our calculations show that Signature Bank (NASDAQ:SBNY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Signature Bank (NASDAQ:SBNY) was in 33 hedge fund portfolios at the end of the third quarter of 2022, compared to 45 funds in the previous quarter. Signature Bank (NASDAQ:SBNY) delivered a -99.84% return in the past 3 months.

In December 2022, we also shared another hedge fund’s views on Signature Bank (NASDAQ:SBNY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.

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