Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -2.25% compared to a -2.96% return for the Russell 2000 Value Index. The Fund returned 2.57% YTD compared to -0.53% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
FPA Queens Road Small Cap Value Fund highlighted stocks like ServisFirst Bancshares, Inc. (NYSE:SFBS) in the third quarter 2023 investor letter. Headquartered in Birmingham, Alabama, ServisFirst Bancshares, Inc. (NYSE:SFBS) is a bank holding company that provides services to individual and corporate customers. On November 17, 2023, ServisFirst Bancshares, Inc. (NYSE:SFBS) stock closed at $51.88 per share. One-month return of ServisFirst Bancshares, Inc. (NYSE:SFBS) was 10.41%, and its shares lost 31.28% of their value over the last 52 weeks. ServisFirst Bancshares, Inc. (NYSE:SFBS) has a market capitalization of $2.824 billion.
FPA Queens Road Small Cap Value Fund made the following comment about ServisFirst Bancshares, Inc. (NYSE:SFBS) in its Q3 2023 investor letter:
“ServisFirst Bancshares, Inc. (NYSE:SFBS) is a conservatively-run lending franchise led by founder Tom Broughton. ServisFirst hires local bankers but doesn’t build branches, which promotes best-in-class efficiency metrics while maintaining a strong and conservative lending culture. Return on equity (ROE) and average earnings-per-share growth have been near 20% for the last 10 years through year end 2022 – very attractive results for a conservative, vanilla commercial lender. ServisFirst shares declined significantly following the failure of Silicon Valley Bank but have outperformed the regional bank ETFs on a year-to-date basis. 20 We think investors are concerned about ServisFirst’s uninsured commercial deposits and the stock’s premium price-to-book valuation. But we are comfortable that although the bank will raise deposit rates, its commercial relationships are sticky, and ServisFirst’s high net interest margin and return on equity (ROE) will allow it to weather the storm better than its competitors. SFBS’ 23Q2 earnings report validated our confidence in the company.”
A bank representative helping a customer to choose a certificate of deposit.
ServisFirst Bancshares, Inc. (NYSE:SFBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held ServisFirst Bancshares, Inc. (NYSE:SFBS) at the end of second quarter which was 19 in the previous quarter.
We discussed ServisFirst Bancshares, Inc. (NYSE:SFBS) in another article and shared FPA Queens Road Small Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.
