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Second Curve sold 8.9% stake in Consumer Portfolio Services in Q2

New York-based Second Curve Capital LLC continued to increase its financial stock investments in the second quarter, according to the firm's latest Form 13F filing.

Its total holdings increased to $145.6 million as of June 30 from $131.2 million in the previous quarter.

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But the firm also completely sold off three positions during the second quarter, including a $6.9 million stake in indirect auto financing company Consumer Portfolio Services Inc., which was the firm’s ninth-largest investment overall as of March 31. At the end of March, Second Curve owned 8.9% of Consumer Portfolio Services' outstanding shares.

Consumer Portfolio's shares did well during the first six months of 2019, returning 26.3%, although that was slightly lower than the SNL U.S. Specialty Lender Index's 29.3% return.

Two of the company's new positions became top 15 holdings as of June 30. The largest addition was a $4.9 million stake in Bethesda, Md.-based Eagle Bancorp Inc., followed by a $4.0 million stake in Ally Financial Inc.

Second Curve also bolstered its holdings in Citigroup Inc. by over 90%, and increased its stakes in Capital One Financial Corp. and Flagstar Bancorp Inc. by over 40% each during the second quarter. The three stakes remain small, however.

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Sioux Falls, S.D.-based Meta Financial Group Inc. became the fund’s top holding, with a stake valued at $16.6 million.

The fund’s former No. 1 position, Pittsburgh-based TriState Capital Holdings Inc., fell to the No. 5 spot at $13.6 million as the hedge fund manager sold off 18.6% of its stake during the quarter. Second Curve also slashed its stakes in Bank of America Corp., Signature Bank, and William Lyon Homes by more than 50% in the second quarter.

Tom Brown founded Second Curve in 2000. Previously, he worked at Julian Robertson Jr.'s Tiger Management Corp.

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Click here for a template containing Second Curve Capital's common stock holdings as of June 30, 2019.