Gator Capital Management, an asset management company, released the “Gator Financial Partners, LLC” first half 2022 investor letter. A copy of the same can be downloaded here. In the first half of 2022, the fund outperformed the financial sector benchmark and returned -17.81%, compared to -18.22% for the S&P 1500 Financials Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Gator Capital Management discussed stocks like Axos Financial, Inc. (NYSE:AX) in the second quarter investor letter. Based in Las Vegas, Nevada, Axos Financial, Inc. (NYSE:AX) is a US-based banking products providing company. On September 13, 2022, Axos Financial, Inc. (NYSE:AX) stock closed at $40.58 per share. One-month return of Axos Financial, Inc. (NYSE:AX) was -12.64% and its shares lost 11.32% of their value over the last 52 weeks. Axos Financial, Inc. (NYSE:AX) has a market capitalization of $2.434 billion.
Here is what Gator Capital Management specifically said about Axos Financial, Inc. (NYSE:AX) in its Q2 2022 investor letter:
“We have owned a position in Axos Financial, Inc. (NYSE:AX) for 2 years, but the stock is off 37% from its high in early 2022. We think Axos is a good example of the opportunity in bank stocks right now. Axos has strong organic growth. It has low credit losses and will benefit from higher rates. No company specific issues have materialized in 2022 to explain the stock decline.
Here is our investment thesis on Axos Financial:
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Management – Greg Garrabrants has been the CEO since 2007 and has done a nice job of growing the bank. We think his strategy of targeting lending businesses with attractive returns and steadily building out multiple deposit franchises has created value. For example, Axos has built out several loan programs such as Small Balance Commercial Mortgages and Lender Finance. On the deposit side, Axos has diversified its deposit gathering from Consumer Direct to include Fiduciary Deposits and White Label Banking.
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Nationwide Direct Bank – Axos Financial is a nationwide direct bank. They have customers in every state, but they do not have branches. Previously, Axos operated under the name Bank of the Internet. The direct bank operation allows them to operate more efficiently than other banks with significant branch systems. Operating as a direct bank for two decades has positioned them well for the current trend of remote work and serving customers virtually…” (Click here to view the full text)
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Axos Financial, Inc. (NYSE:AX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Axos Financial, Inc. (NYSE:AX) at the end of the second quarter which was 13 in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
