Salt Lake City-based hedge fund manager M3F Inc. increased its financial stock portfolio by almost $5 million in the second quarter to $91.1 million, even as the firm slashed its No. 1 position by more than 80%.
According to the company's Aug. 14 Form 13F, M3F's stake in Oakland, Md.-based First United Corp. fell to $2.7 million as of June 30 from $13.5 million in the first quarter, making the bank its 18th-largest position. First United's stock had a strong second quarter and at one point was up more than 20% after it was listed for inclusion in the Russell 3000 Index. However, the stock began dropping in late June and closed the quarter with a 7.00% return.
At the end of June, M3F owned 1.83% of First United's outstanding stock, down from 9.92% three months earlier.
M3F boosted its stake in Provident Financial Holdings Inc. by 4.8% in the second quarter, helping to make the Riverside, Calif.-based bank its new No. 1 position.
The hedge fund manager also revealed three new stakes as of June 30, the largest of which was a $5.8 million position in Monroeville, Penn.-based Standard AVB Financial Corp. M3F's other two new positions — Lacey, Wash.-based Anchor Bancorp and Manistique, Mich.-based Mackinac Financial Corp. — were each worth about $3.6 million at the end of June. On July 17, Anchor announced that it terminated its twice-delayed deal with Seattle-based Washington Federal Inc. and signed a new $76.6 million deal to be acquired by Mountlake Terrace, Wash.-based FS Bancorp Inc. Anchor's stock has returned 11.85% this quarter as of Aug. 13.
The firm exited two positions during the second quarter, DNB Financial Corp. and StoneCastle Financial Corp., which were both worth less than $1 million as of March 31.
Founded in 2009, M3F focuses on common stock investments in the financial services industry. The principals are Jason Stock and William Waller.
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Company filings including the 13F can be found through the filings archive tab on a company's briefing book page.