Investment management company Cedar Creek Partners recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund increased by 13.4% net of fees and expenses. In the nine months ended 30th September 2022, the fund was up 2.4% net of fees and expenses. You can check the top 5 holdings of the fund to know its best picks in 2022.
Cedar Creek Partners discussed stocks like BM Technologies, Inc. (NYSE:BMTX). Headquartered in Wayne, Pennsylvania, BM Technologies, Inc. (NYSE:BMTX) is a financial technology company. On October 21, 2022, BM Technologies, Inc. (NYSE:BMTX) stock closed at $7.23 per share. One-month return of BM Technologies, Inc. (NYSE:BMTX) was 12.97% and its shares lost 9.74% of their value over the last 52 weeks. BM Technologies, Inc. (NYSE:BMTX) has a market capitalization of $91.517 million.
Cedar Creek Partners made the following comment about BM Technologies, Inc. (NYSE:BMTX) in its Q3 2022 investor letter:
“We did increase our position in BM Technologies, Inc. (NYSE:BMTX) which we detailed in our 2022 second quarter letter. We also purchased some of the publicly traded warrants as well. BMTX should benefit from higher interest rates in terms of replacing their agreement with Customers Bancorp (CUBI). Customers currently pays BMTX roughly 3% on deposits that BMTX gains through its BankMobile subisidiary. Once the acquisition of First Sound Bank (FSWA) for $25 million goes through, much of the deposits could be held at the bank and invested in three month treasury bills which currently yield nearly 4.0%, or they could broker the deposits and likely make a similar amount in the current environment. We think the stock is currently trading at less than three times forward cash earnings assuming a 3% yield on deposits, and less than two times cash earnings, net of “excess cash” at BMTX. We used parenthesis on “excess cash” due to there likely be a need for the capital at the bank subsidiary once the acquisition closes.”
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BM Technologies, Inc. (NYSE:BMTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held BM Technologies, Inc. (NYSE:BMTX) at the end of the second quarter which was 4 in the previous quarter.
We discussed BM Technologies, Inc. (NYSE:BMTX) in another article and shared Cedar Creek Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
