Why One Fund Trimmed 1.4% Exposure to a Bank Stock Up 13% in a Year

Core Insights - Shaker Investments sold its entire stake of 26,185 shares in Wintrust Financial, resulting in a decrease of $3.47 million in the fund's quarter-end position value [2][3] - The sale reduced Shaker Investments' exposure to Wintrust Financial by 1.44% of its 13F assets under management [3] Company Overview - Wintrust Financial operates a diversified banking and specialty finance business across the Midwest and select Florida markets, focusing on community banking, specialty finance, and wealth management [6][8] - The company reported a total revenue of $2.73 billion and a net income of $823.84 million for the trailing twelve months (TTM) [4] Financial Performance - As of January 29, shares of Wintrust Financial were priced at $147.90, reflecting a 13.2% increase over the past year, although it underperformed the S&P 500 by about 2 percentage points [3][4] - The company's dividend yield stands at 1.35% [4] Market Position and Strategy - Wintrust Financial's business model generates income through net interest margins, fee-based services, and specialty lending, primarily serving individuals, small to mid-sized businesses, local government units, and institutional clients [8] - The company has shown steady business performance supported by loan growth and a diversified fee base, although profitability is affected by net interest margin dynamics and deposit costs [10] Investment Implications - The exit of Shaker Investments from Wintrust Financial indicates a strategic shift towards more concentrated investments in industrials and mega-cap technology, reducing exposure to rate-sensitive earnings [7][11] - The performance of Wintrust Financial suggests respectable execution but lacks clear multiple expansion compared to broader market trends [10]