In this article, we discuss the top 10 finance stock picks of Anton Schutz’s Mendon Capital Advisors.
Mendon Capital Advisors is a New York-based investment advisor, established in 1996, primarily focusing on the US financial services sector. Anton Schutz is the president, chief investment officer, and senior portfolio manager at Mendon Capital Advisors, and his keen knowledge of the finance industry, as well as the significant relationships he has fostered over more than 30 years of industry experience, have served him well in his quest to manage a successful portfolio.
Schutz completed his Bachelor’s in business administration and management from Franklin & Marshall College in 1986, and received his Master’s in business administration and finance from Fordham University by 1988. Schutz, in 1986, served as the vice president of Chase Manhattan Bank, where he was responsible for derivative instruments and structure portfolios, which he managed with a team of hedge fund managers and commodity trading advisors. Schutz remained with Chase Manhattan Bank till 1996, when he left to start his own investment advisory firm in New York. In 2000, Schutz joined Tucker Anthony, a Boston-based independent investment banking and brokerage firm, as the senior vice president, working with the firm for two years.
Schutz’s portfolio is heavily concentrated, with 93.08% of the stocks from the finance sector. With a top ten holdings concentration of 43.14%, the largest holding of Mendon Capital Advisors’ as of the 13F filings at the end of June this year is Live Oak Bancshares, Inc. (NASDAQ:LOB), which represents 7.58% of the firm’s portfolio.
Anton Schutz of Mendon Capital Advisors
Schutz controls over $293 million in managed 13F securities as of the second quarter, with the most notable stocks in his Q2 portfolio being Wells Fargo & Company (NYSE:WFC), Cowen Inc. (NASDAQ:COWN), Veritex Holdings, Inc. (NASDAQ:VBTX), and Live Oak Bancshares, Inc., among others discussed in detail below.
Our Methodology
Let’s take a look at the top 10 finance stock picks of Anton Schutz’s Mendon Capital Advisors. We consulted the Q2 portfolio of Mendon Capital Advisors to compile this list, ranking each stock as per the firm’s stake value in the company.
Why should we pay attention to Anton Schutz’s top stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Anton Schutz’s Mendon Capital Advisors Portfolio: Top Finance Stocks
10. PacWest Bancorp (NASDAQ:PACW)
Mendon Capital Advisors’ Stake Value: $7,931,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 2.70%
Number of Hedge Fund Holders: 29
PacWest Bancorp (NASDAQ:PACW) is a bank holding company, established in 1999, with its headquarters in California. PacWest Bancorp is primarily known for its wholly owned subsidiary, Pacific Western Bank, which operates 79 branches in California. Engaged in commercial banking, deposit and treasury management for small and mid-cap businesses, and offering commercial loans for the construction and real estate sectors, PacWest Bancorp is one of the top stock picks of Anton Schutz as of June this year.
Schutz, via Mendon Capital Advisors, owns 175,000 shares in PacWest Bancorp, worth $7.93 million, representing 2.70% of the firm’s Q2 portfolio. Fisher Asset Management is the leading stakeholder in PacWest Bancorp, with stakes worth $44.75 million. Overall, 29 hedge funds in the database of Insider Monkey were long PacWest Bancorp, as of June this year.
PacWest Bancorp reported its Q3 earnings, with EPS for the period totaling $1.17 on October 18, beating estimates by $0.15. Revenue for the quarter came in at $331.12 million, exceeding estimates by $14.01 million.
Truist analyst Brandon King, on October 20, kept a Buy rating on PacWest Bancorp, raising the price target from $50 to $55, owing to the Q3 earnings beat. The analyst also raised his EPS guidance for FY21 from $4.85 to $5.08, following a strong loan growth momentum.
9. FB Financial Corporation (NYSE:FBK)
Mendon Capital Advisors’ Stake Value: $8,498,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 2.89%
Number of Hedge Fund Holders: 13
A financial holding company from Tennessee, FB Financial Corporation (NYSE:FBK) is a top stock pick of Anton Schutz, who owns 198,195 shares in the company via Mendon Capital Advisors, worth $8.49 million, representing 2.89% of the investment firm’s Q2 portfolio. FB Financial Corporation operates through its wholly owned subsidiary, FirstBank, which has 81 full-service branches serving customers in Tennessee, North Alabama, Southern Kentucky, and North Georgia. The range of services offered by FB Financial Corporation include commercial banking, consumer banking, residential mortgage, and commercial loans.
As of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey’s elite funds were bullish on FB Financial Corporation, up from 10 in the preceding quarter. Mendon Capital Advisors is the leading stakeholder in FB Financial Corporation as of June this year.
On October 18, FB Financial Corporation announced its Q3 results. EPS for the third quarter totaled $0.89, beating estimates by $0.07. FB Financial Corporation’s revenue came in at $148.24 million, exceeding estimated revenue by $9.61 million.
Jennifer Demba, a Truist analyst, on October 20, kept a Buy rating on FB Financial Corporation, raising the price target from $46 to $52, following the Q3 earnings beat. She also believes that FB Financial Corporation’s loan pipeline is strong and has potential for growth in 2022.
In addition to Wells Fargo & Company, Cowen Inc., Veritex Holdings, Inc., and Live Oak Bancshares, Inc., FB Financial Corporation is a notable stock in Anton Schutz’s Q2 portfolio.
8. Origin Bancorp, Inc. (NASDAQ:OBNK)
Mendon Capital Advisors’ Stake Value: $9,742,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 3.31%
Number of Hedge Fund Holders: 12
A bank holding company from Louisiana, Origin Bancorp, Inc. (NASDAQ:OBNK) via its subsidiary, Origin Bank, offers financial products and services including commercial and personal loans, mortgage, line of credit, treasury management, and insurance, among other services. Origin Bancorp, Inc. operates more than 43 banking centers across the US. Mendon Capital Advisors holds 230,046 shares in Origin Bancorp, Inc., worth $9.74 million, representing 3.31% of the firm’s portfolio as of June this year.
Origin Bancorp, Inc. reported on October 27 its Q3 earnings. EPS for the period came in at $1.14, beating estimates by $0.16. Revenue for Origin Bancorp, Inc. totaled $68.46 million, exceeding estimated revenue by $0.26 million.
As of the end of June, 12 hedge funds reported owning stakes in Origin Bancorp, Inc., up from 11 in the preceding quarter.
7. First BanCorp. (NYSE:FBP)
Mendon Capital Advisors’ Stake Value: $10,329,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 3.51%
Number of Hedge Fund Holders: 25
First BanCorp. (NYSE:FBP) is a top finance stock according to Anton Schutz’s Q2 portfolio, with Mendon Capital Advisors retaining 785,541 shares in the financial holding company, valued at $10.32 million, representing 3.51% of the firm’s portfolio as of June this year. First BanCorp. is headquartered in Puerto Rico, and operates via its two primary subsidiaries, namely FirstBank Puerto Rico and FirstBank Insurance Agency, Inc. First BanCorp. offers commercial and corporate banking, consumer banking, mortgage banking, as well as treasury and investment management services.
Wells Fargo analyst Timur Braziler, on November 9, kept a price target of $16 on First BanCorp., along with an Overweight rating. He believes First BanCorp. to be the second largest Puerto Rican bank, predicts that the stock valuation would increase in the future, owing to an improved lending outlook and increased profitability.
As of October 25, the Q3 EPS for First BanCorp. totaled $0.37, beating estimates by $0.10. Revenue for the quarter was reported as $214.69 million, exceeding analysts’ consensus estimates by $5.77 million. As of the second quarter of 2021, 25 hedge funds were long First BanCorp., with stakes worth $262.6 million.
6. Byline Bancorp, Inc. (NYSE:BY)
Mendon Capital Advisors’ Stake Value: $11,052,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 3.76%
Number of Hedge Fund Holders: 13
Byline Bancorp, Inc. (NYSE:BY) is a community and commercial Chicago-based bank, offering personal banking, catering to small businesses, commercial loans, and wealth management services. Anton Schutz, via Mendon Capital Advisors, owns 450,000 shares in Byline Bancorp, Inc., worth over $11 million, representing 3.76% of the firm’s portfolio as of June this year.
Of the 873 hedge funds tracked by Insider Monkey, 13 funds were bullish on Byline Bancorp, Inc., with stakes worth $36.8 million, up from 8 in the previous quarter, with an approximate stake value equaling $28.2 million.
Byline Bancorp, Inc., on October 28, reported a Q3 EPS of $0.69, beating estimates by $0.13. Revenue for the quarter was $78.34 million, exceeding estimated revenue by $3.09 million.
In addition to Wells Fargo & Company, Cowen Inc., Veritex Holdings, Inc., and Live Oak Bancshares, Inc., Byline Bancorp, Inc. is a notable stock in Schutz’s portfolio for the second quarter.
5. Spirit of Texas Bancshares, Inc. (NASDAQ:STXB)
Mendon Capital Advisors’ Stake Value: $12,378,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 4.21%
Number of Hedge Fund Holders: 9
Spirit of Texas Bancshares, Inc. (NASDAQ:STXB) made it to our list of the top finance stock picks of Mendon Capital Advisors, with the investment firm owning stakes valued at $12.37 million in the bank holding company, accounting for 4.21% of its investment portfolio as of the second quarter.
Spirit of Texas Bancshares, Inc. specializes in community, commercial, and retail banking services via 36 branches in the state of Texas. As of the second quarter, 9 hedge funds tracked by Insider Monkey’s exclusive database reported owning stakes in Spirit of Texas Bancshares, Inc., with an approximate stake value of $26.4 million.
Spirit of Texas Bancshares, Inc. posted earnings results, October 27, for the third quarter. Earnings per share were reported as $0.59, as predicted by the analysts. The revenue for the period was $31.29 million, missing estimates by -$1.34 million.
4. The First Bancshares, Inc. (NASDAQ:FBMS)
Mendon Capital Advisors’ Stake Value: $13,174,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 4.48%
Number of Hedge Fund Holders: 9
The First Bancshares, Inc. (NASDAQ:FBMS) is a Mississippi-based bank holding company, with operations in Louisiana, Alabama, Georgia, and Florida. Offering services like personal banking, mortgage lending, treasury management, and a network of ATMs and branches, The First Bancshares, Inc. is one of the top finance stock picks of Anton Schutz, with Mendon Capital Management holding a $13.1 million stake in the company.
Of the hedge funds monitored by Insider Monkey, Chuck Royce’s Royce & Associates is the largest stakeholder in The First Bancshares, Inc., as of June this year, with 652,051 shares valued at $25.2 million.
On October 25, earnings per share for Q3 were announced as $0.76 by The First Bancshares, Inc., beating estimates by $0.01. Revenue for the quarter equated $40.03 million, surpassing forecasts by $0.48 million.
The First Bancshares, Inc. will distribute dividends amounting to $0.16 per common share on November 26, to shareholders on record as of November 9. This represents an increase of 6.67% when compared to the previous dividend payout.
3. Equity Bancshares, Inc. (NASDAQ:EQBK)
Mendon Capital Advisors’ Stake Value: $15,508,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 7
Anton Schutz’s Mendon Capital Advisors holds 464,611 shares in Equity Bancshares, Inc. (NASDAQ:EQBK), as of the second quarter of 2021. Representing 5.28% of Schutz’s Q2 portfolio, Equity Bancshares, Inc. is a Kansas-based bank holding company, offering investment management services, house loans, digital banking, and commercial lending to customers across Kansas, Oklahoma, Arkansas, and Missouri.
As of Q2, 7 hedge funds in the database of exclusive funds maintained by Insider Monkey reported owning stakes in Equity Bancshares, Inc., worth $28.7 million. Mendon Capital Advisors is the leading stakeholder in the company, as of the second quarter.
Equity Bancshares, Inc., on October 19, reported earnings per share for the third quarter as $0.96, exceeding estimates by $0.24. Revenue for the period totaled $46.81 million, up 21.28% year-over-year.
It was disclosed on October 25 that Equity Bancshares, Inc. would enter into a purchase and assumption agreement with United Bank & Trust, based in Maryville, so that United Bank & Trust can assume control of the assets and operations of Equity Bancshares, Inc.’s branches in Concordia, Belleville, and Clyde. If regulatory approval is given, the merger will be completed by the second quarter of 2022.
2. Veritex Holdings, Inc. (NASDAQ:VBTX)
Mendon Capital Advisors’ Stake Value: $15,744,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 5.36%
Number of Hedge Fund Holders: 9
Veritex Holdings, Inc. represents 5.36% of Anton Schutz’s Mendon Capital Advisors’ Q2 portfolio, making it one of the firm’s top finance stocks. Veritex Holdings, Inc., via its subsidiary Veritex Community Bank, specializes in commercial banking products and services, aimed at small to medium businesses. Veritex Holdings, Inc. also offers commercial treasury services, corporate lending, and digital banking.
Veritex Holdings, Inc. announced a quarterly cash dividend of $0.20 per share on October 26, with a 1.96% forward yield. Veritex Holdings, Inc. would distribute the dividend to shareholders on record as of November 9, payable on November 23. The company also announced Q3 earnings per share of $0.70, beating estimates by $0.02.
Brad Milsaps from Piper Sandler, on October 28, kept an Overweight rating on Veritex Holdings, Inc. stock, inflating the price target from $42 to $46. He attributed the rating to the Q3 earnings beat and a strong balance sheet owing to a growth in commercial lending.
1. Live Oak Bancshares, Inc. (NASDAQ:LOB)
Mendon Capital Advisors’ Stake Value: $22,270,000
Percentage of Mendon Capital Advisors’ 13F Portfolio: 7.58%
Number of Hedge Fund Holders: 11
As of June this year, Live Oak Bancshares, Inc. is the largest holding in Anton Schutz’s investment portfolio. Mendon Capital Advisors holds 350,000 shares in Live Oak Bancshares, Inc., amounting to $22.27 million, representing 7.58% of the firm’s Q2 portfolio. Live Oak Bancshares, Inc. is a bank holding company from Washington, servicing small businesses via commercial lending and deposits. The commercial lending portfolio at Live Oak Bancshares, Inc. includes loans for construction and development, commercial real estate, and commercial land.
Live Oak Bancshares, Inc. posted Q3 earnings on October 27, with EPS for the period totaling $0.76, exceeding estimates by $0.10. Revenue for the third quarter was $103.01 million, up 4.68% year-over-year.
Jennifer Demba, from the investment advisory Truist, raised the price target on Live Oak Bancshares, Inc. from $90 to $115, while keeping a Buy rating on the stock. She believes that the Q3 earnings were impressive, and Live Oak Bancshares, Inc. has several opportunities to further grow its EPS.
Follow Insider Monkey on Twitter
Suggested articles:
- David Greenspan’s Slate Path Capital is Buying Coinbase, Stitch Fix, and More
- Analysts are Increasing Price Targets of Tesla and 9 Other Stocks
- 10 Stocks Making Headlines After Earnings Reports
This article is originally published at Insider Monkey.
