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 Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!