Wilbur Ross’ Invesco Private Capital Substantially Reduces Exposure to Talmer Bancorp (TLMR)

Last Friday, Wilbur Ross’ Invesco Private Capital considerably reduced its exposure to Talmer Bancorp Inc (NASDAQ:TLMR).  Following the last of the transactions – the sale of 3.61 million shares for $13 per share, Invesco owns 10.42 million shares of the company, worth more than $144 million. The fund had declared the ownership of 14.04 million Class A Common Stock shares only two days earlier, on the date of the company’s Initial Public Offering (IPO).

INVESCO PRIVATE CAPITAL Wilbur Ross

Talmer Bancorp Inc (NASDAQ:TLMR) is a bank holding company with a market cap slightly below $1 billion. It operates through three subsidiaries: Talmer Bank and Trust, Talmer West Bank and First Place Bank. The firm priced its initial public offering of 15.56 million shares of Class A Common Stock at $13.00 per share. Out of the total amount, Talmer sold 3.70 million shares, while the remaining 11.85 million shares were sold by certain selling shareholders.

The company boasts above-average margins and returns (returns on equity and assets double industry means), but still trades below its peers´ valuation, at 2.9 times its sales –versus an industry average of 3.3 x.

Despite the fact that Talmer Bancorp Inc (NASDAQ:TLMR)’s stock traded – in the open market – closer to $14 per share than to $13 per share since its IPO, Invesco sold a big chunk of its participation in the company in the context of the company´s IPO, where the price was set at $13. The offering was closed on the same date as Invesco’s sale. Shares are now available for regular purchases.

In order to understand this sale, one must take one fact into account: Invesco held more than 14 million Talmer shares before the company went public. The fund had paid substantially less for each share, and has already perceived a considerable upside with this sale – it received about $47 million for the 3.61 million shares.

Moreover, this sale could be interpreted as an opportunity that Ross’ fund saw, more than as a bearish signal. In fact, I would still believe that Mr. Ross feels quite bullish about Talmer Bancorp Inc (NASDAQ:TLMR)’s future, based on his ownership of more than 10 million shares. In fact, Mr. Ross is not the only one who had bet on this company before its IPO. David Einhorn‘s Greenlight Capital held 3.35 million Class A shares before the company went public.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Brevan Howard Top Stock Picks: CME Group Inc (CME), Transocean LTD (RIG) & Others

Billionaire Carl Icahn’s Top Picks At the End of 2013

Billionaire Mark Kingdon’s Top Stock Picks: HCA Holdings, Delta Air Lines & Others

Comments
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

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations 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!