Tom Brown's Second Curve Capital LLC made a number of significant portfolio changes in the first quarter of 2018. With six exits and just one entry, the portfolio contracted to 18 common stock holdings compared to 23 in the previous quarter. Additionally, four existing stakes were more than doubled, while Charles Schwab Corp. and Moline, Ill.-based QCR Holdings Inc. stakes were slashed more than 70%.
PNC Financial Services Group Inc. was the largest first-quarter exit, with a position value of $5.8 million at year-end 2017. It was one of two fourth-quarter 2017 entries. The other five exits in the first quarter were each worth $2.5 million or less.
The lone first-quarter entry was Sterling Bancorp. Brown purchased 40,000 shares of the Montebello, N.Y.-based bank during the quarter, valued at $900,000 at March 31.
Brown more than quadrupled the stakes in Santa Ana, Calif.-based Banc of California Inc. and Medallion Financial Corp., while increasing the positions in Triton International Ltd. and Capital One Financial Corp. by 139% and 105%, respectively.
Sioux Falls, S.D.-based Meta Financial Group Inc. remained the fund's top holding, even after Brown cut the position 15.8% during the quarter.
Brown established Second Curve in 2000. Previously, he worked at Julian Robertson Jr.'s Tiger Management Corp. and was a sell-side bank analyst for several years.


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