Jacobs Asset Management sharply increases exposure to Allstate in Q1

Jacobs Asset Management LLC dramatically ramped up its exposure to Allstate Corp. in the first three months of 2023, pushing the insurer to the top of the New York-based hedge fund manager's holdings list.

This article is part of a series on large institutional investors active in the US financial sector. All institutional investment managers active in the US with more than $100 million in investments in Form 13F securities must file quarterly statements detailing their positions.

Big bet on Allstate

Jacobs Asset Management's total first-quarter common stock holdings were $172.3 million, down 14.7% on a quarter-over-quarter basis, according to its most recent Form 13F. At the same time, the company increased its holdings in Allstate's shares 293.3% sequentially to $16.3 million.

A-Mark Precious Metals Inc., the top holding in the previous quarter, slipped to the No. 2 spot as Jacobs Asset Management shed 23.0% of its position in the precious metals trading company. As of March 31, the stake had a market value of $12.0 million.

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Sprott Inc. ranked third on Jacobs Asset Management's top holdings list, followed by Billings, Mont.-based First Interstate BancSystem Inc. The asset manager's stake in Sprott had a market value of $11.0 million as of March 31, and the market value of its stake in First Interstate was $9.7 million.

Jacobs Asset Management bulked up on shares of Dewitt, NY-based Community Bank System Inc. with a 201.9% increase. But after betting big on Buffalo, NY-based M&T Bank Corp. a quarter ago, the asset manager cut its holdings in the bank by 61.9%.

Exits

The asset manager exited its positions in 10 banks in the first quarter. The largest was its position in Santa Ana, Calif.-based Banc of California Inc., which had a market value of $6.0 million at Dec. 31, 2022.

Jacobs Asset Management also completely shed its holdings in Waldorf, Md.-based Community Financial Corp., which is in a pending merger with Easton, Md.-based Shore Bancshares Inc.

The combined market value of the exited positions as of the end of the fourth quarter of 2022 was $30.4 million.

Entries

Jacobs Asset Management initiated nine stakes worth a combined $23.7 million. Eight of those were in banks.

Two of the entries — a $4.5 million position in mortgage real estate investment trust AGNC Investment Corp. and a $7.5 million stake in Tacoma, Wash.-based Columbia Banking System Inc. — made it to the asset manager's top 20 holdings.

Camp Hill, Pa.-based LINKBANCORP Inc. and Salisbury, Md.-based Partners Bancorp, which are in a pending merger of equals, were also among Jacobs Asset Management's entries.