Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 4.20% compared to a 3.18% return for the Russell 2000 Value Index. The Fund returned 4.93% in the first half compared to 2.50% for the index. 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 second 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 September 11, 2023, ServisFirst Bancshares, Inc. (NYSE:SFBS) stock closed at $52.20 per share. One-month return of ServisFirst Bancshares, Inc. (NYSE:SFBS) was -9.95%, and its shares lost 37.14% of their value over the last 52 weeks. ServisFirst Bancshares, Inc. (NYSE:SFBS) has a market capitalization of $2.841 billion.
FPA Queens Road Small Cap Value Fund made the following comment about ServisFirst Bancshares, Inc. (NYSE:SFBS) in its Q2 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 202217 – very attractive for a conservative, vanilla commercial lender. ServisFirst was down significantly following the failure of Silicon Valley Bank and has underperformed the regional bank ETFs.18 We think investors are worried that ServisFirst is funded by uninsured commercial deposits and the stock’s premium valuation based on price to book. But we are comfortable that while the bank will raise deposit rates, the commercial relationships are sticky and ServisFirst’s high NIM and ROE will allow it to weather the storm better than competitors.”
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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, 18 hedge fund portfolios held ServisFirst Bancshares, Inc. (NYSE:SFBS) at the end of second quarter which was 19 in the previous quarter.
We discussed ServisFirst Bancshares, Inc. (NYSE:SFBS) in another article and shared the list of most profitable banks in the world. In addition, please check out our hedge fund investor letters Q2 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.
