Here’s Why Silver Beech Capital Exited Arbor Realty Trust (ABR)
Silver Beech Capital, a value-oriented investment management firm, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. Year-to-date, the fund returned 14.1% compared to 14.5% for the S&P 500 Index and 4.4% for the Russell 2000 Index. The fund generated strong absolute and relative returns. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Silver Beech Capital highlighted stocks like Arbor Realty Trust, Inc. (NYSE:ABR) in the second quarter 2023 investor letter. Headquartered in Uniondale, New York, Arbor Realty Trust, Inc. (NYSE:ABR) is a real estate investment trust that invests in a portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets. On July 14, 2023, Arbor Realty Trust, Inc. (NYSE:ABR) stock closed at $15.76 per share. One-month return of Arbor Realty Trust, Inc. (NYSE:ABR) was 13.63%, and its shares gained 13.96% of their value over the last 52 weeks. Arbor Realty Trust, Inc. (NYSE:ABR) has a market capitalization of $2.855 billion.
Silver Beech Capital made the following comment about Arbor Realty Trust, Inc. (NYSE:ABR) in its second quarter 2023 investor letter:
"Arbor Realty Trust, Inc. (NYSE:ABR) is a small-capitalization mortgage REIT that primarily originates bridge multifamily and single-family home loans. Arbor also has in-house asset-light agency loan origination and mortgage servicing right segments that are a good strategic fit for properties that mature out of Arbor’s bridge multifamily loan program. Over the last decade, in part due to Arbor’s unique business combination and capital allocation strength, the company has earned among the highest returns on equity and shareholder returns in the mortgage REIT sector.
On March 14, an unidentified short seller published a report that claimed Arbor had engaged in fraud by hiding toxic assets off-balance sheet, reporting fake revenues, and accused management of looting funds from the company, among several similar claims. The report’s claims were among the most extraordinary we have read in a short report and resulted in a dramatic decline in the company’s share price. Additionally, the report was released three days after Silicon Valley Bank was put into foreclosure by the FDIC. Investor fear and the short report drove selling, compounded by a Wall Street Journal article highlighting a multifamily loan to a distressed Houston project..." (Click here to read the full text)
Photo by Blake Wheeler on Unsplash
Arbor Realty Trust, Inc. (NYSE:ABR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Arbor Realty Trust, Inc. (NYSE:ABR) at the end of first quarter 2023 which was 17 in the previous quarter.
We discussed Arbor Realty Trust, Inc. (NYSE:ABR) in another article and shared the list of dividend stocks with over 10% yield. 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.
