Core Insights - Black Bear Value Fund reported a return of -7.1% in September, -1.0% for the quarter, and -12.7% year-to-date, underperforming the S&P 500 which returned +3.6% in September, +8.1% for the quarter, and +14.8% year-to-date [1] - The fund highlighted Flagstar Financial, Inc. (NYSE:FLG) as a notable stock, which had a one-month return of -5.23% and a 52-week gain of 8.73%, closing at $11.96 per share with a market capitalization of $4.97 billion [2][3] Company Analysis - Flagstar Financial, Inc. is described as the former New York Community Bank, formed from a combination of Flagstar Bank, New York Community Bank, and assets from Signature Bank, indicating a complex corporate structure [3] - The fund noted that Flagstar Financial shares similarities with other short investments like Silicon Valley Bank and First Republic due to balance sheet issues related to multifamily and office real estate [3] - Despite acknowledging the potential of Flagstar Financial as an investment, the fund believes that certain AI stocks present greater upside potential and lower downside risk [4] Hedge Fund Interest - Flagstar Financial, Inc. was held by 36 hedge fund portfolios at the end of the second quarter, unchanged from the previous quarter, indicating stable interest among hedge funds [4]
Here’s Black Bear Value Partners’ Views on Flagstar Financial (FLG)