EJF Capital Raises Stake in Regional Management Corp (RM) to 10%

As revealed a newly amended filing with the U.S. Securities and Exchange Commission,  Emanuel J. Friedman and his fund EJF Capital have boosted their position in Regional Management Corp (NYSE:RM). EJF Capital disclosed ownership of more than 1.28 million shares of Regional Management, significantly up from around 850,300 shares held previously. The passive stake amasses almost 10% of the company’s common stock.

Financial company Regional Management Corp (NYSE:RM) is a small cap (around $356 million market cap) provider of loans engaged in lending money to costumers with a limited access to consumer credit from banks and other traditional lenders. The company has recently reported its financial results, posting an annual 26% increase in revenue, which amounted to 170.6 million in 2013. Regional Management Corp (NYSE:RM) also ended the year with an EPS of $2.23, higher than $2.07 in 2012. The stock trails a P/E of around 11, below the industry average of 22.xx. On average, the recommendation for the stock is ‘Buy,’ and the target price is above $36.50, higher than the current price.

Out of the funds that we track, the largest position in Regional Management Corp (NYSE:RM) is held by Tom Brown‘s Second Curve Capital, which, in its latest 13F, revealed ownership of more than 950,200 shares, up by 94% over the quarter. Cardinal Capital, managed by Amy Minella, also has been bullish on the company, and raised the stake by around 134% to roughly 515,500 shares.

According to its latest 13F filing, the financial sector amasses the largest portion of EJF’s equity portfolio. American Homes 4 Rent (NYSE:AMH) was the most valuable holding in EJF’s 13F portfolio at the end of last year, the fund reporting a $189.66 million stake, which contains some 11.71 million shares, up by almost 40% over the quarter. The second-largest was represented by PHH Corporation (NYSE:PHH), in which the fund holds over 4.96 million shares, with a reported value of $120.85 million.

Disclosure: none

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