FPA Queens Road: “We Remain Confident in ServisFirst (SFBS)’s Long-Term Prospects”

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” first-quarter 2021 investor letter – a copy of which can be downloaded here. FPA Queens Road Small Cap Value Fund (“Fund”) returned -3.3% in the first quarter of 2022. This compares to a -2.2% return for the Russell 2000 Value Index in the same period. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, FPA Queens Road mentioned ServisFirst Bancshares, Inc. (NASDAQ:SFBS) and explained its insights for the company. Founded in 2005, ServisFirst Bancshares, Inc. (NASDAQ:SFBS) is a Birmingham, Alabama-based bank holding company with a $4.4 billion market capitalization. ServisFirst Bancshares, Inc. (NASDAQ:SFBS) delivered a -3.21% return since the beginning of the year, while its 12-month returns are up by 18.39%. The stock closed at $82.21 per share on June 01, 2022.

Here is what FPA Queens Road has to say about ServisFirst Bancshares, Inc. (NASDAQ:SFBS) in its Q1 2022 investor letter:

“ServisFirst Bancshares (NASDAQ:SFBS), a Birmingham, Ala.-based commercial bank, finished 2021 posting 8% quarter-over-quarter loan growth and has signaled that management expects the strong loan growth to continue throughout 2022. Loan quality remains high, and loss reserves seem more than adequate. The company recently hired a new team of bankers to help sustain continued loan growth. As one of the largest holdings in the portfolio, we remain confident in the company’s long-term prospects.”

Photo by Viacheslav Bublyk on Unsplash

Our calculations show that ServisFirst Bancshares, Inc. (NASDAQ:SFBS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. ServisFirst Bancshares, Inc. (NASDAQ:SFBS) was in 9 hedge fund portfolios at the end of the first quarter of 2022, compared to 10 funds in the previous quarter. ServisFirst Bancshares, Inc. (NASDAQ:SFBS) delivered a -7.61% return in the past 3 months.

In March this year, we also shared FPA Queens Road’s Q4 2021 views on ServisFirst Bancshares, Inc. (NASDAQ:SFBS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.