| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 22.18% | 4.14% | 31.94% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 31.9% | 41.9% | 44.2% | -12.0% | 23.9% | 18.4% |
Gator Financial Partners delivered strong Q4 2025 performance of 4.14%, bringing full-year returns to 31.94% and outperforming both broader markets and financial sector benchmarks. The fund's focus on small and mid-cap financials proved successful, with top contributors including Anywhere Real Estate, Societe Generale, First Citizens Bancshares, and Customers Bancorp. Major detractors were PayPal, Global Payments, and Virtus Investment Partners on the long side, plus short positions in TD Bank and Citigroup. Key portfolio moves included hedging the successful Robinhood position as valuations increased, exiting PayPal due to ongoing business challenges, and initiating a new position in TFS Financial Corporation. The TFS investment represents the fund's thesis on mutual holding company structures, which provide leveraged exposure to banking sector recovery. With declining short-term rates beginning to ease deposit pricing pressure and adjustable-rate mortgages repricing higher, the fund expects gradual net interest margin recovery across its banking holdings. The improving operating environment, combined with disciplined capital allocation and share repurchases, should drive attractive value creation for minority shareholders in these specialized structures.
The fund targets undervalued small and mid-cap financial institutions positioned to benefit from normalizing interest rate environment and sector-specific opportunities, with particular focus on mutual holding company structures that provide leveraged exposure to earnings recovery.
The fund expects net interest margin to continue recovering gradually over the next several years as bank balance sheets reprice and excess liquidity drag diminishes. This recovery requires merely a normalization from unusually depressed profitability levels rather than heroic assumptions. The improving operating environment for traditional banks, combined with structural advantages of mutual holding company investments, should drive attractive compounding of tangible book value.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 3 2026 | 2025 Q4 | BCS, BNP.PA, C, COMP, CUBI, FCNCA, GLE.PA, GPN, HOOD, HOUS, JPM, JXN, PYPL, SOHO, TD, TFSL, UMBF, VRTS | Banking, Capital markets, financials, real estate, Regional Banks, small caps, value | TFSL | The fund focuses on small and mid-cap financial institutions, particularly regional banks with mutual holding company structures. TFS Financial represents a key investment in this space, offering leveraged exposure to earnings recovery through its unique MHC structure. Significant exposure to mortgage-related businesses through TFS Financial's traditional thrift model and Anywhere Real Estate's real estate services. The fund sees opportunity as the housing market recovers and interest rate environment normalizes. Strong positioning in capital markets through investment platforms like Robinhood Markets and traditional investment management firms. The fund benefited from continued product innovation and growth in retail trading platforms. |
| Nov 4 2025 | 2025 Q3 | AX, BNP.PA, C, CG, FCNCA, FFBC, GLE.PA, HOOD, HOUS, SLM | Banking, Credit quality, financials, Long/Short, Regional Banks, value | MBG GR | Manager maintains overweight position in small and mid-cap regional banks despite recent volatility from fraud losses and disappointing credit metrics. Banks trade at 8x forward earnings versus normal 10-14x range, with tailwinds from steepening yield curve, loan repricing, and improved regulatory environment. |
| Aug 5 2025 | 2025 Q2 | AX, BNP.PA, C, CG, FCNCA, FFBC, GLE.PA, HOOD, HOUS, SLM | Bank Valuations, Credit quality, financials, M&A, Regional Banks, yield curve |
WEX VRTS FFBC |
Manager maintains overweight position in small and mid-cap regional banks trading at 8x next year's earnings versus normal 10-14x range. Banks face headwinds from inverted yield curve but benefit from Fed rate cuts steepening the curve and loan repricing tailwinds. Recent credit quality concerns have led to reduced sector exposure. |
| May 5 2025 | 2025 Q1 | BARC.L, BNP.PA, FCNCA, GLE.PA, GPN, HOOD, PYPL, SLM, UMBF, VRTS | Asset Managers, financials, Regional Banks, small caps, tariffs, Trade Policy, value | VRTS | The manager views recent sweeping tariff proposals as an unforced policy error and unnecessarily reckless approach. While improving America's trade positioning is legitimate, broad-based tariffs on nearly all global imports with limited warning creates unnecessary risk. The manager believes these tariffs will ultimately be short-lived based on market interpretation of events. |
| Jan 28 2025 | 2024 Q4 | AX, BOH, C, COLB, CUZ, FCNCA, GLE.PA, HIFS, HONE, HOOD, JPM, JXN, KINS, NBN, OFG, PNFP, SLM, TCBI, UMBF, VNO | Banking, Capital markets, financials, interest rates, M&A, Regional Banks | GLE.PA | Manager remains optimistic about regional banks in 2025, citing benefits from interest rate cuts, expected loan growth acceleration, and improved M&A environment under new administration. Regional banks are viewed as undervalued compared to historical averages and positioned to benefit from flattened yield curve and repricing of maturing loans. |
| Oct 30 2024 | 2024 Q3 | AX, BXP, CBNA, COLB, CUZ, FCNCA, HOOD, JXN, PYPL, REAL, UMBF, VNO, WAL | Banking, Deposits, financials, Regional Banks, value | CBNA | The fund focuses heavily on regional banking with multiple positions including First Citizens Bancshares, UMB Financial, Western Alliance Bancorp, and Columbia Banking System. The manager emphasizes the value of strong deposit franchises following the Regional Bank Crisis in March 2023. |
| Jul 31 2024 | 2024 Q2 | AX, BANC, BARC.L, CG, CUBI, EWBC, FBP, FCNCA, HOOD, JXN, PNFP, PYPL, SLM, UMBF, WAL, WBS, WTFC | credit, financials, Growth Banks, Rate Cuts, Regional Banks, valuation | - | Regional banks rallied strongly in July due to tame inflation, prospects of more favorable regulatory environment, and better-than-expected earnings. The Fund benefited from extreme negative positioning by other investors who had been using regional bank ETF as large short position. Manager believes regional banks remain cheap compared to history with coming rate cuts driving earnings higher. |
| May 15 2024 | 2024 Q1 | AX, BAC, BCS, CNOB, CUB, DCOM, ESQ, FBP, FCNCA, GNW, HOOD, JXN, NYCB, OFG, OSBC, PNFP, ROOT, SLM, UMBF, WAL, WBS | Credit Risk, financials, interest rates, Regional Banks, SMID Cap, value | - | Manager sees selective opportunities in small-to-mid-sized regional banks despite sector headwinds. Believes stock investors are overly pessimistic about credit concerns while the real issues are interest rate risk and loan volume growth. Groups favorites into Puerto Rican banks, growth banks, and small banks with unique stories. |
| Jan 30 2024 | 2023 Q4 | HOOD | - | - | |
| Nov 10 2023 | 2023 Q3 | FCNCA | - | - | |
| Oct 7 2023 | 2023 Q2 | - | - | - | |
| Apr 25 2023 | 2023 Q1 | SIVBQ | - | - | |
| Jan 24 2023 | 2022 Q4 | CG | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Capital MarketsExchanges operate as essential high-margin toll roads for the economy with immense operating leverage. They benefit from trading volume flowing directly to profits with minimal extra cost and have natural inflation hedging through transaction values. |
Exchanges Nasdaq CBOE Trading Fees Market Data |
MortgageFalling interest rates and federal support for housing should drive a continued rebound in mortgage origination volumes, which should benefit mortgage originators and credit bureaus. FICO launched its new Direct Licensing Program for mortgage lending, which provides greater flexibility to monetize its intellectual property. |
Mortgage Origination Housing Credit Scoring Lending Real Estate | |
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value | |
| 2025 Q3 |
Credit StressThe fund is responding to historically low credit spreads by reducing exposure to high yield and other lower-rated debt. They believe current spreads offer insufficient compensation for credit risk and increase the risk of permanent impairment of capital. The managers are downside-focused and do not share the market's optimism needed to justify such low spreads. |
Credit spreads High yield Credit risk Permanent impairment Risk compensation |
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q2 |
Bank M&A |
|
Credit Quality |
||
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value | |
| 2025 Q1 |
Asset Managers |
|
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value | |
Trade PolicyRecent tariff policies continued to negatively impact U.S. consumers and companies throughout the year. However, international companies have been finding new trade arrangements and growth opportunities, benefiting from shifts in global trade patterns as the new U.S. administration alters terms of international cooperation. |
Tariffs International Growth Cooperation Impact | |
| 2024 Q4 |
Capital MarketsExchanges operate as essential high-margin toll roads for the economy with immense operating leverage. They benefit from trading volume flowing directly to profits with minimal extra cost and have natural inflation hedging through transaction values. |
Exchanges Nasdaq CBOE Trading Fees Market Data |
Commercial Real EstateFund invests in leading commercial real estate services companies CBRE, JLL, and Cushman & Wakefield that benefit from outsourcing trends, institutionalization of commercial real estate, and market share opportunities in a fragmented industry. These companies are expected to generate 15%+ annual earnings growth as commercial real estate sales and leasing activity rebounds. |
Services Outsourcing Institutionalization Market Share Fragmented | |
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value | |
| 2024 Q3 |
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value |
Specialty Finance |
||
| 2024 Q2 |
Credit Quality |
|
Growth Banks |
||
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value | |
| 2024 Q1 |
Credit Risk |
|
Interest Rates |
||
Regional BanksFlagstar has exceptional management and board that are ahead of the game in turning their business around after balance sheet issues. Trading at significant discount to conservatively marked balance sheet compared to similar banks. |
Banks Turnaround Value |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 30, 2024 | Fund Letters | Gator Capital Management | CBNA | Chain Bridge Bancorp | Banks | Regional Banks | Bull | NASDAQ | acquisition target, Deposit Franchise, dual-class structure, Election Cyclicality, high ROE, IPO, Liquid Balance Sheet, Low Credit Risk, Political Campaigns, regional banks, Specialty Banking, Zero-cost Deposits | Login |
| Nov 4, 2025 | Fund Letters | Derek Pilecki | MBG GR | Mercedes-Benz Group AG | Other | Automobile Manufacturers | Bull | NYSE | Autos, buybacks, dividends, Electrification, Luxury, Margins, Pricingpower, valuation | Login |
| Aug 5, 2025 | Fund Letters | Derek Pilecki | WEX | WEX Inc. | Information Technology | Software - Infrastructure | Bull | NYSE | activist, Capital-light, deleveraging, Free Cash Flow, Payments, recurring revenue, valuation | Login |
| Aug 5, 2025 | Fund Letters | Derek Pilecki | VRTS | Virtus Investment Partners, Inc. | Financials | Asset Management | Bull | NASDAQ | Acquisitions, Active management, asset management, buybacks, Free Cash Flow | Login |
| Feb 3, 2026 | Fund Letters | Derek Pilecki | TFSL | TFS Financial Corporation | Financials | Thrifts & Mortgage Finance | Bull | NASDAQ | Earnings-recovery, Mutual Holding Company, net interest margin, share repurchases, tangible book value, yield curve | Login |
| Jan 28, 2025 | Fund Letters | Gator Capital Management | GLE.PA | Société Générale | Financials | Banks | Bull | Euronext Paris | capital allocation, cost-cutting, digital banking, European Bank, france, shareholder returns, Subsidiary Monetization, turnaround, Value | Login |
| May 5, 2025 | Fund Letters | Gator Capital Management | VRTS | Virtus Investment Partners | Financials | Asset Management & Custody Banks | Bull | NASDAQ | Acquisitions, Active management, asset management, CLO equity, Free Cash Flow, Multi-boutique, recurring revenue, Seed Investments, share repurchases, Value | Login |
| Nov 4, 2025 | Fund Letters | Gator Capital Management | FFBC | First Financial Bancorp | Banks | Regional Banks | Bull | NASDAQ | Commercial Banking, Credit Culture, fee income, M&A, Midwest, regional banks, Roa, Rotce, Value, yield curve | Login |
| TICKER | COMMENTARY |
|---|---|
| BNP.PA | Paris-based bank serving commercial, retail, investment, private and corporate banking services internationally |
| C | Money center bank Citigroup rose amid strong capital markets activity and benign credit conditions. The company continued to repurchase stock and return capital to shareholders, while expenses related to its transformation are expected to decline next year. |
| FCNCA | First Citizens Bancshares was a contributor during the quarter. The U.S.-headquartered diversified bank's stock price rose after it delivered solid results, with earnings per share exceeding consensus expectations. Loans and Deposits grew healthily, and management continues to repurchase stock at a steady pace. We continue to believe that First Citizens is a high-quality regional bank with a strong management team that we think can help it unlock sustained long-term value. |
| GLE.PA | Shares of the France-based investment bank rose as the company reported strong quarterly results, with a boosted profit outlook due to a continued rebound in retail banking. The bank has benefited from initiatives to improve profitability and its performance versus European peers. |
| GPN | Global Payments shares fell as the company announced the acquisition of payment processing company Worldpay. Due to reduced conviction in the investment thesis, we sold our position earlier in the year. |
| HOOD | Robinhood Markets, Inc. is a digital brokerage platform serving retail investors. Shares detracted during the quarter following robust performance over the first nine months of the year. While overall activity levels remain strong, Robinhood experienced some softening in customer engagement in November, with cryptocurrency trading volumes in particular declining on both a month-over-month and year-over-year basis. |
| HOUS | Anywhere Real Estate was a strong performer in 2025. We originally purchased the stock at $4 in May of 2020. It ran up to $20. We mistakenly added to it at $15 on a pullback and even wrote about it in our 2022 Q1 letter. We completely missed the pullback in the housing market and took our losses in late 2023 at $5. We repurchased the position at $3.29 on the closing print when the stock was kicked out of the Russell 2000 in June 2024. We added to the position several times below $4. Then in Q3 of 2025, the stock started to perk up on the prospects of a housing market recovery. In September 2025, Anywhere agreed to be acquired by its competitor Compass for a 100% premium. It finished the year up 329%. |
| JPM | JPMorgan (JPM) has identified 42 AI-related stocks in the S&P 500, which today represent 45% of the index's market cap. They estimate that these stocks have accounted for 78% of S&P 500 returns, 66% of earnings growth, and 71% of capital spending growth since ChatGPT launched in November 2022. As it relates to the impact on the U.S. economy, JPM estimates tech sector capital spending contributed 40%-45% of U.S. GDP growth through the first 9 months of the year, up from less than 5% during the same period in 2023. |
| JXN | Our biggest position is meant to be a boring American life insurer trading at a P/E of 4; fortunately, 'cheap and boring' doesn't imply they can't surprise with positive developments. In the case of Jackson we have had some positive growth surprises in RILA sales in the past, and now they are also partnering with TPG. By partnering with a large global alternative asset manager, they can widen their product range and are expected to deliver better margins on their products. The stock has gone up over 20% on the back of this development. |
| PYPL | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| TFSL | In December, we purchased a position in TFS Financial Corporation. TFSL is the holding company for Third Federal Savings & Loan, which is a $17 billion bank headquartered in Cleveland, OH. TFSL has a unique corporate structure. It is majority-owned by a mutual holding company, while the public shareholders own a minority stake in the bank. We think the mutual holding company structure can help create superior returns for the public shareholders. |
| UMBF | UMB Financial also contributed negatively. UMB Financial has also been a model of the owner-operator mentality. Many of the traits described above relating to how a good owner-operator company finances itself and guides capital reinvestment decisions can be seen in UMB Financial, which has established a long record of excellent financial stewardship. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
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| No industry data available | |||
