Gator Capital Management, an asset management company, recently released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund performed well in the third quarter outperforming the broader market, while performing in line with the Financials sector benchmark. The fund returned 10.82% in the quarter compared to 5.89% and 11.04% returns for the S&P 500 Total Return Index and S&P 1500 Financials Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Gator Capital Management highlighted stocks like Chain Bridge Bancorp, Inc. (NYSE:CBNA), in the third quarter 2024 investor letter. Chain Bridge Bancorp, Inc. (NYSE:CBNA) is a bank holding company for Chain Bridge Bank, N.A., that provides commercial and personal banking services. The one-month return of Chain Bridge Bancorp, Inc. (NYSE:CBNA) was 9.88%. On November 5, 2024, Chain Bridge Bancorp, Inc. (NYSE:CBNA) stock closed at $22.80 per share with a market capitalization of $149.609 million.
Gator Capital Management stated the following regarding Chain Bridge Bancorp, Inc. (NYSE:CBNA) in its Q3 2024 investor letter:
“We purchased shares in a recent initial public offering (“IPO”) of Chain Bridge Bancorp, Inc. (NYSE:CBNA) (“Chain Bridge” or “CBNA”). Chain Bridge has a specialty deposit business providing banking services to Republican political campaigns and political action committees. These political campaigns deposit their funds in the bank in non-interest bearing checking accounts. Because of the zero-cost deposits, the bank invests its balance sheet conservatively and still earns high returns.
We think the shares of Chain Bridge provide an attractive risk/reward at the current share price. Here’s our investment thesis:
Unique Customer Focus – Chain Bridge’s specialty deposit business brings zero-cost deposits to the bank. Chain Bridge’s customers are the Treasurers of Republican political campaigns and Political Action Committees (“PACs”). These customers value the ability to open accounts quickly with a bank that understands their accounts. These customers have a lot of money moving in and out of their accounts, so they are not interested in earning interest. Instead, they are concerned about their transactions getting completed in a timely manner. Chain Bridge’s bankers are focused on serving these customers…” (Click here to read the full text)
A business owner discussing commercial business loans with a bank representative.
Chain Bridge Bancorp, Inc. (NYSE:CBNA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Chain Bridge Bancorp, Inc. (NYSE:CBNA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.