Brown Trout Management Reveals New Stake in Camco Financial Corp.

Brown Trout Management, reported in a new filing with the Securities and Exchange Commission, initiating  a new position in Camco Financial Corp. (NASDAQ:CAFI). The stake is passive by nature and contains around 738,500 shares, with an aggregate value of some $4.6 million, at the current stock price of the company. The position amasses 5.2% of the company’s common stock.

It is interesting to mention, that at the end of October, Brown Trout, managed by Steven Gerbel, disclosed an equal position ,of 5.2% of the common stock, in another financial company, Tower Financial Corporation (NASDAQ:TOFC). The fund holds similar stakes in two other companies from the industry: Mayflower Bancorp Inc. (NASDAQ:MFLR), and BCSB Bancorp Inc (NASDAQ:BCSB).

The move made by Brown Trout into Camco Financial comes after the company reported that the consent order issued by the Federal Insurance Corporation and the State of Ohio’s Department of Commerce, Division of Financial Institution has been terminated. The company, which conducts its operations mainly through its Advantage Bank holding, stated that the termination of the order underlines the progress it has been achieving in pursuing long-term growth.

The stock of the company gained over 200% since the beginning of the year, and sports a P/E of 7.xx. In the third quarter of the year, Camco reported a slight appreciation in its net income, which amounted to $0.7 million, up from $0.5 million for the same quarter of last year.

Earlier in October, Huntington Bancshares Incorporated (NASDAQ:HBAN) and Camco Financial reported about signing a definitive merger agreement, under the terms of which Huntington will purchase Camco in a cash and stock transaction. Camco’s stockholders will have the option to receive $6.00 in cash for each share of Camco Financial, or around 0.7 shares of Huntington common stock.

Aside from Brown Trout Management, Firefly Value Partners, led by Ryan Heslop and Ariel Warszawski, and Jeffrey Gendell‘s Tontine Asset Management, also reported holding shares of Camco Financial. Each of the funds holds around 1.1 million shares, and 813,500 shares respectively, according to our records.

Disclosure: none

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