ServisFirst Bancshares (SFBS) Fell Following the Silicon Valley Bank Failure

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 0.70% compared to a -0.66% return for the Russell 2000 Value Index. The firm expects the fund to outperform in down markets and trail in speculative markets.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

FPA Queens Road Small Cap Value Fund highlighted stocks like ServisFirst Bancshares, Inc. (NYSE:SFBS) in the first quarter 2023 investor letter. Headquartered in Birmingham, Alabama, ServisFirst Bancshares, Inc. (NYSE:SFBS) is a bank holding company that provides services to individual and corporate customers. On May 3, 2023, ServisFirst Bancshares, Inc. (NYSE:SFBS) stock closed at $46.23 per share. One-month return of ServisFirst Bancshares, Inc. (NYSE:SFBS) was -10.67%, and its shares lost 43.25% of their value over the last 52 weeks. ServisFirst Bancshares, Inc. (NYSE:SFBS) has a market capitalization of $2.515 billion.

FPA Queens Road Small Cap Value Fund made the following comment about ServisFirst Bancshares, Inc. (NYSE:SFBS) in its Q1 2023 investor letter:

“ServisFirst Bancshares, Inc. (NYSE:SFBS) is a conservatively run lending franchise helmed by Tom Broughton. Tom hires local bankers but doesn’t build branches – this allows for best-in-class efficiency metrics while maintaining a strong and conservative lending culture. Return on equity (ROE) and average earnings per share growth have been near 20% for the last 10 years through year-end 202213 – very attractive for a conservative, vanilla commercial lender. ServisFirst was down significantly following the failure of Silicon Valley Bank but outperformed the iShares Regional Bank ETF over both the quarter and the two week period when deposit run fears were most acute.”

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ServisFirst Bancshares, Inc. (NYSE:SFBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held ServisFirst Bancshares, Inc. (NYSE:SFBS) at the end of the fourth quarter which was 18 in the previous quarter.

We discussed ServisFirst Bancshares, Inc. (NYSE:SFBS) in another article and shared First Pacific Advisors’ views on the company 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.