Banc of California Inc (BANC): Oaktree Capital Management Discloses New Position

The company’s recent positive announcements, however, were overshadowed by the launch of an investigation against the company’s Board of Directors in relation to possible breaches of fiduciary duty. Furthermore, shares of Banc of California have lost around 22.5% of their value over the past year. Considering Oaktree Capital Management’s preference for companies that are often considered to be contrarian investments, this underperforming stock seems like a great fit.

Although Banc of California Inc (NYSE:BANC) does not seem like a great investment opportunity at first sight, numerous institutional investors continue to bet on its success. Mark Lee’s Forest Hill Capital reduced his stake in the company by 26% during the third quarter, yet it still owns 1.1 million shares. William Black’s Consector Capital is even more bullish, with a position amounting to 1.6 million shares, representing 7.1% of the fund’s equity portfolio. Another institutional investor worth mentioning is Robert I. Usdan and Wayne K. Goldstein’s Endicott Management, which disclosed ownership of 1 million shares as of the end of the third quarter.  However, the greatest display of optimism stems from Oaktree Capital Management, since it now holds the largest position in the company following its latest acquisition of common stock.

Disclosure: Pablo Erbar holds no position in any stocks or funds mentioned.