Rod Hinze is the founder and manager of Keypoint Capital Management. Prior to founding Keypoint Capital, Mr. Hinze worked as an investment banker at Bear Sterns, and was an employee of Goldman Sachs’ real estate private equity group. In addition, Mr. Hinze served as the manager of the real estate portfolio of another Dallas-based hedge fund, Western Reserve Capital Management. The equity portfolio of Keypoint Capital Management was valued at $120.89 million at the end of March, containing holdings in 20 companies. In this article, we will take a look at the top five positions in terms of value from Keypoint’s equity portfolio.
In the small cap commercial banks holding company Independent Bank Group Inc (NASDAQ:IBTX), Keypoint revealed a $12.84 million stake, which contains 218,500 shares, down by 20% on the quarter. Even though, the fund has trimmed its exposure to the company, its holding still amasses over 10% of the total 13F portfolio value. The stock of Independent Bank Group Inc (NASDAQ:IBTX) edged up by around 6% during the first quarter of the year, and trails a P/E of around 34.00, almost double in comparison to its peers’ average of 17.00. Chuck Royce‘s Royce & Associates is also a shareholder of Independent Bank Group Inc (NASDAQ:IBTX), holding 169,500 shares, worth $9.96 million as of the end of March.
First NBC Bank Holding Company (NASDAQ:NBCB) is on the second place. In fact, the largest portion of Keypoint’s equity portfolio is concentrated in financial stocks, and the first three companies are representatives of the financial sector. In First NBC Bank Holding Company (NASDAQ:NBCB), the fund reported ownership of 328,300 shares, valued at $11.44 million. NBC Bank, held by First NBC Bank Holding Company is a Louisiana state not member bank which operates over 30 branches in Louisiana and Mississippi. While Keypoint upped its stake in the company by 30%, Israel Englander‘s Millennium Management has decreased its exposure to First NBC Bank Holding Company (NASDAQ:NBCB) by 16% to 406,950 shares, worth $14.19 million.
Another small-cap bank holding company in Keypoint’s equity portfolio is OmniAmerican Bancorp, Inc. (NASDAQ:OABC), of which the fund owns 370,400 shares, valued at $8.44 million. The stock of OmniAmerican Bancorp gained over 12% since the beginning of the year. For the first quarter of the year, OmniAmerican Bancorp, Inc. (NASDAQ:OABC) reported EBITDA worth around $3.0 million, and earnings per share of $0.14, on total value of $14 million, the results remaining basically flat on the quarter. Michael Price‘s MFP Investors is another shareholder of OmniAmerican Bancorp, Inc. (NASDAQ:OABC), holding 552,800 shares as of the end of March, with a value of $12.60 million.
Next on the list comes an Energy company, Oil States International, Inc. (NYSE:OIS), of which Keypoint owns 85,000 shares, the position being initiated during the first quarter of the year. The $8.38 million stake currently amasses close to 7% of the fund’s equity portfolio. Barry Rosenstein‘s Jana Partners is also bullish on Oil States International, Inc. (NYSE:OIS) and, according to its latest 13F filing, owns 6.12 million shares, worth $603.52 million. The $5.5 billion Oil States International, Inc. (NYSE:OIS) is a company engaged in services and products related to the energy industry.
The last on our list of picks comes the $7.59 million position in Forestar Group Inc. (NYSE:FOR). The holding has been decreased by 18% during the first quarter, and currently contains 426,300 shares. The stock of the small cap real estate development company has dropped by 18% year-to-date and trails a P/E of 20.80, significantly above the industry average of approximately 3.00. Jeffrey Bronchick‘s Cove Street Capital is also betting on Forestar Group Inc. (NYSE:FOR), holding 1.40 million shares, valued at $24.85 million as of the end of March.