Synovus Financial Corp. (SNV) and Wells Fargo & Co (WFC) Amongst Basswood Capital’s Top Picks For Q2

A few days ago, Matthew Lindenbaum’s Basswood Capital, filed a Schedule 13F with the SEC, disclosing his long equity positions as of June 30, 2014. The fund´s equity portfolio is mainly focused on financial companies (80%), and saw 9 new stocks arrive over the second quarter of 2014. In addition, Basswood increased its stakes in 69 of its preexisting holdings and sold out of 20 of them. So, let´s take a look at its top holdings for Q2, in order to elucidate if any of them deserve further research.

The first spot in the list remained unchanged in relation to the first quarter: Synovus Financial Corp. (NYSE:SNV). This $3.3 billion market cap financial services company and registered bank holding company saw Matthew Lindenbaum’s position expanded by 8% over Q2. The fund now owns 3.85 million shares of Synovus Financial Corp. (NYSE:SNV), with a market value of almost $94 million, which account for more than 4.8% of its total equity portfolio.

Synovus Financial Corp. (NYSE:SNV)

In addition to Basswood, other major funds seem to feel quite bullish about Synovus Financial Corp. (NYSE:SNV). Ken Griffin’s Citadel Investment Group almost doubled its exposure to the company on mid-May. The fund now owns about 7.26 million shares of the company. Although it had disclosed ownership of 50.8 million shares in its 13G filing, the company implemented, a few days later, a one-for-seven reverse stock split.

The second and third positions also remained the same as in the previous quarter. First is Wells Fargo & Co (NYSE:WFC), a $273 billion market cap diversified financial services company in which Basswood owns a stake worth more than $63 million -1.21 million shares, which saw no change over Q2.

Wells Fargo & Co (NYSE:WFC) is Warren Buffett’s biggest position at the moment. The famed investor owns more than 463 million shares of the company, worth about $23 billion.

Wells Fargo & Co (NYSE:WFC) has managed to recuperate from the massive drop in the price of the stock generated by the 2008 financial crisis. It is already up 14% year-to-date, but still trades at a discount valuation (13x P/E) in relation to its industry peers. In addition, the stock carries an annualized dividend yield of 2.68% of the current stock price.

U.S. Bancorp (NYSE:USB) didn’t witness any changes in Mr. Lindenbaum’s position either. The fund’s 1.15 million shares stake, worth almost $50 million accounts for approximately 2.5% of its total equity portfolio.

Same as in the aforementioned case, Warren Buffett is the largest hedge fund shareholder at U.S. Bancorp (NYSE:USB), with more than 80 million shares, worth over $3.4 billion.

U.S. Bancorp (NYSE:USB) is a $78.3 billion market cap multi-state financial holding company that provides financial services through its subsidiaries, including lending and depository services, cash management, foreign exchange and trust and investment management services. The stock is up about 6.4% year to date, and analysts expect it to continue to rise, at least another 3 percentage points.

Belden Inc. (NYSE:BDC) ascended from the ninth position in this list to the fourth, although Basswood’s stake, once again, remained unaltered. The stock price for this $3.3 billion market cap electronic components provider is up roughly 13% since the end of Q1. This made the value of Basswood’s position at Belden Inc. (NYSE:BDC) increase from $42.67 million to $47.92 billion.

Trailing Basswood, which is the largest hedge fund investor at the company, is Ira Unschuld’s Brant Point Investment Management, which last declared ownership of 321,900 shares (for Q1) of Belden Inc. (NYSE:BDC), worth about $25 million at current stock prices.

City National Corp (NYSE:CYN), a $4.1 billion market cap provider of banking, investment and trust services, is the last company in this list. After expanding its bet on the company by 10%, Basswood owns 584,330 shares of City National Corp (NYSE:CYN), worth approximately $44 million. John W. Rogers holds an even larger stake at City National Corp (NYSE:CYN). His fund, Ariel Investments, disclosed ownership of 2.1 million shares by the end of Q1 2014.

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!