Is Capital City Bank Group (CCBG) A Smart Long-Term Buy?

Heartland Advisors, an investment management firm, published its “Heartland Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 12.71% was delivered by the fund’s institutional class shares for the Q1 of 2021, below its Russell 2000® Value benchmark that delivered a 21.17% return for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Heartland Value Fund, in its Q1 2021 investor letter, mentioned Capital City Bank Group, Inc. (NASDAQ: CCBG), and shared their insights on the company. Capital City Bank Group, Inc. is a Tallahassee, Florida-based bank holding company that currently has a $428.2 million market capitalization. Since the beginning of the year, CCBG delivered a 15.68% return, extending its 12-month gains to 37.66%. As of May 13, 2021, the stock closed at $25.41 per share.

Here is what Heartland Value Fund has to say about Capital City Bank Group, Inc. in its Q1 2021 investor letter:

“Capital City Bank Group, Inc. (CCBG), through its 57 branches serves the booming state of Florida and fast-growing Southeastern U.S. We’ve been long-term investors in the company, attracted by its unique position as one of the largest publicly traded financial holding institutions headquartered in Florida, conservative long-term capital allocation strategy, and significant insider ownership.

Capital City has made the most of population increases as reflected by its five-year compounded 35% annual growth rate. Additionally, management has been able to produce a 9.5% return on equity, outpacing the roughly 7% rate of regional banks on average.

Despite its high-growth footprint and strong management, shares of Capital City are priced in line with what we view as slower-growing weaker competitors.”

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Our calculations show that Capital City Bank Group, Inc. (NASDAQ: CCBG) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Capital City Bank Group, Inc. was in 6 hedge fund portfolios. CCBG delivered a 16.85% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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