17 Feb, 2022
FJ Capital swaps investments in Puerto Rican banks in Q4'21
By David Hayes and Zuhaib Gull
McLean, Va.-based FJ Capital Management LLC reported $1.19 billion in common stock investments at the end of December 2021, up slightly from $1.15 billion a quarter earlier, according to the firm's latest Form 13F filing.
| About this analysis This article is part of a series on large institutional investors active in the U.S. financial sector. All institutional investment managers active in the U.S. with over $100 million in investments in Form 13F securities must file quarterly statements detailing their positions. For an up-to-date summary of FJ Capital Management's common stock investments, click here or go to FJ Capital's main page on the S&P Capital IQ Pro website and click "Public Holdings Detailed" under "Investments" in the left-hand menu. |
Oak Ridge, N.J.-based Lakeland Bancorp Inc. leapfrogged two spots to FJ Capital's No. 1 position at $59.6 million in the fourth quarter after the fund manager sold roughly 43% of its stake in Veritex Holdings Inc. and trimmed its position in Eastern Bankshares Inc., which had been its two largest common stock stakes as of Sept. 30, 2021.
Lakeland completed its acquisition of Cranbury, N.J.-based 1st Constitution Bancorp on Jan. 6 and expects to cross $10 billion in assets during the first quarter.
According to S&P Global Market Intelligence data, FJ Capital owned 6.20% of Lakeland's outstanding shares at the end of 2021.
During the fourth quarter, FJ exited 23 positions that were worth a combined $74.4 million as of Sept. 30, 2021, and initiated 31 new positions worth an aggregate $74.3 million.
Interestingly, both FJ's largest exit and largest entry were $15.6 million stakes in First BanCorp. and Popular Inc., respectively, both of which are based in Puerto Rico.
Popular's stock has outperformed since the end of the third quarter of 2021, returning 21.9%, compared to 13.9% for First BanCorp. as of Feb. 16. By comparison, the S&P 500 and S&P US BMI Banks Index have gained only 4.3% and 7.5%, respectively, over the same time frame.
FJ Capital was formed in 2007 by Martin Friedman and Andrew Jose and primarily focuses on "under-followed" community banks.
