Activist funds in community bank stocks have a solid track record of success, with 29% of the banks examined eventually being sold and relative outperformance versus the NASDAQ, according to Sterne Agee analysts.
In an industry report dated September 26, 2014, Matthew Kelley and team at Sterne Agee point out most of the banks being targeted remain small and less expensive.
Shareholder activism in community banks
Gleaning through eight investment funds that have filed SEC form 13Ds over the last several years, the analysts highlight that a beneficial ownership interest greater than 5% can be a precursor to a shareholder seeking general corporate or management change in some form.
As can be deduced from the following table, in many cases, these activist...
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