Should You Invest in Old Second Bancorp (OSBC)?
Gator Capital Management, an asset management company, recently released its second-quarter investor letter. A copy of the same can be downloaded here. The fund outperformed both the broader market and the Financials sector benchmark in the second quarter. The fund returned 13.00% in the quarter compared to 8.74% and 4.78% for the S&P 500 Total Return Index and S&P 1500 Financials Index, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Gator Capital Management highlighted stocks like Old Second Bancorp, Inc. (NASDAQ:OSBC) in the second quarter 2023 investor letter. Headquartered in Aurora, Illinois, Old Second Bancorp, Inc. (NASDAQ:OSBC) is a holding company for Old Second National Ban. On August 15, 2023, Old Second Bancorp, Inc. (NASDAQ:OSBC) stock closed at $14.97 per share. One-month return of Old Second Bancorp, Inc. (NASDAQ:OSBC) was 1.42%, and its shares gained 2.67% of their value over the last 52 weeks. Old Second Bancorp, Inc. (NASDAQ:OSBC) has a market capitalization of $668.637 million.
Gator Capital Management made the following comment about Old Second Bancorp, Inc. (NASDAQ:OSBC) in its second quarter 2023 investor letter:
"Above, we made the case that we see opportunities on both the long and short side of banks based on the bank’s interest rate positioning. We present the case of a long position in Old Second Bancorp, Inc. (NASDAQ:OSBC) versus a short position in Hingham Institute for Savings. Both banks trade at similar valuations, but they are opposites as far as interest rate positioning.
Old Second Bancorp is a commercial bank in the far western suburbs of Chicago. Old Second is valued at 1.4x tangible book value. Old Second is well positioned for the current high short-term interest rate environment. In 2021, Old Second acquired West Suburban, which was focused on suburban markets between Old Second’s branches and downtown Chicago. West Suburban had great branch locations in DuPage County that the former CEO had purchased in the 1950s and 60s. These branches create a very strong core deposit franchise with long-term customers. Over the past six quarters, Old Second’s net interest yield spread has risen from 2.77% to 4.17% as earning yields on loans and securities have risen and the deposit franchise remains stable with funding at relatively low rates..." (Click here to read the full text)
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Old Second Bancorp, Inc. (NASDAQ:OSBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Old Second Bancorp, Inc. (NASDAQ:OSBC) at the end of first quarter which was 11 in the previous quarter.
We discussed Old Second Bancorp, Inc. (NASDAQ:OSBC) in another article and shared the list of best performing bank stocks in 2022. In addition, please check out our hedge fund investor letters Q2 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.
