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Thank you for your interest in our research.

At Gator, we are dedicated to a research-oriented investment approach. To demonstrate our research integrated investment strategy, we would like to provide you some insight into our analytical stock selection process. As a reminder, the discussion of individual securities should not be construed as a recommendation to buy or sell such securities.

Not all research is for securities currently held. Any securities for which research is provided herein may be reduced, completely closed out, or not purchased at all without notice of any kind.


November 17, 2017: ARES Management: (ARES) 

              
We own Ares Management. Ares Management is a Los Angeles-based alternative asset manager that alumni of Apollo Management founded in 1997. Ares specializes in direct private lending, but the firm also has significant private equity and real estate platforms. Ares Management is the third-party manager for the largest publicly-traded business development company (BDC), Ares Capital Corporation (ARCC).Here is our investment thesis on Ares Management: 1) We Favor Alternative Managers over Traditional...READ MORE 



September 19, 2017: SLM CORPORATION (SLM)

              
We purchased SLM Corporation (“SLM”) this summer because it was trading at 10x 2017 estimated EPS and is growing its loan portfolio more than 20% annually. SLM is the renamed student loan company formerly known as Sallie Mae. The student loan industry has gone through significant changes over the last 10 years. The industry used to originate a mix of government guaranteed loans and private loans. In 2010, the government ended the program of third-party lenders making government guaranteed...READ MORE 


September 21, 2017: Capital One 

              
We believe Capital One stock is interesting because it has the best combination of growth and value among the super-regional banks. With its mix of national lending platforms and online deposit gathering franchises, Capital One has the best strategic positioning of super-regional banks. The company is posting the best growth rate among the credit card issuers. The non-promotional management team has been positive about the growth opportunities that they currently see. The company’s stock trades for less than ...READ MORE 



August 23, 2017: OFG Bancorp (OFG)

              
We’ve owned shares of OFG Bancorp for a little over a year and have added to our position recently. OFG is the third largest of the publicly-traded banks in Puerto Rico (PR). We added to the position because we believe the bank has improved operations, but the market is distracted by the restructuring of the Puerto Rican government’s (“PR Govt”) debt. Below is a summary of our thesis: US regulated bank – Since Puerto Rico (PR) is a territory of the United States, US banking regulators regulate PR-based...READ MORE 


April 20, 2017: Kingstone Companies (KINS)

              
We purchased additional common shares of Kingstone Companies, Inc. (NASDAQ: KINS) in late January when the company raised capital in a follow-on offering at $12 per share.  We’ve owned shares in Kingstone since their previous equity offering in December 2013 at $5.95. The shares have increased in value 25% since the recent equity offering. Please do not take this write-up as a recommendation to buy the shares today. We merely want to continue sharing our investment process with you. Kingstone Companies is...READ MORE 


January 22, 2017: Ally Financial (ALLY)

              
We purchased shares of Ally Financial because we think the stock can double over the next three years. We believe Ally’s stock valuation is compelling, we expect earnings to grow about 15% per year, Ally’s earnings growth is not dependent on higher interest rates, and the company has started to return excess capital to shareholders. Ally Financial was formerly known as General Motors Acceptance Corporation (“GMAC”). As you know, GMAC provided auto loans to consumers at GM dealerships.  Starting in...READ MORE 



September 21, 2016: OneMain Holdings (OMF)

              
We purchased OneMain Holdings because it was trading 5x 2017 estimated EPS, and we believe it is a beneficiary of consolidation in the consumer unsecured lending business. We believe as the company realizes the cost savings from a recent major acquisition and deleverages through retaining earnings that the stock valuation will improve. OneMain Holdings is relatively new to the public markets, but the core operations of the company have a long history. The private equity firm Fortress Investments...READ MORE 


May 19, 2016: Colony Capital 

              
Colony Capital, Inc. (Colony) is a REIT focused on commercial real estate. In 2009, the company came public as Colony Financial and was a permanent capital vehicle managed by Colony Capital. The company invested in distressed real estate debt and equity. Over time, this opportunistic strategy led Colony to invest in a portfolio of industrial properties and another portfolio of single-family homes. Colony also originates first and mezzanine mortgages for commercial properties. The company is regarded...READ MORE 


May 19, 2016: Voya Financial

              
We’ve owned Voya Financial since its IPO in 2013 and believe it represents an extraordinary opportunity at current prices around $31. Voya Financial is the old U.S. subsidiary of ING, the Dutch insurance company. ING needed a bailout from the Dutch government during the financial crisis. One of the conditions of the bailout was ING had to divest its US operations. So, after renaming the subsidiary Voya, ING sold a stake through an IPO in 2013 and sold off the rest of its stake through an IPO in 2013 and solf off...READ MORE 


January 1, 2016: Ambac Financial Group, Inc. (AMBC) 

              
We believe the equity of Ambac is mispriced due to several factors such as 1) being a post re-org equity, 2) crossover ownership from distressed credit funds who are forced sellers due to redemptions in their funds, 3) being a run-off business, 4) difficult to interpret financial statements; and, 5) valuation dependent on litigation. We also believe there are near-term catalysts that will help unlock value. Ambac Financial Group, Inc. (AMBC) is a holding company headquartered in New York, NY... READ MORE 


May 11, 2015: Re/Max (RMAX)

              
Re/Max is a high-quality franchised real-estate brokerage business. The company’s revenues are based mainly on the number of real estate agents working under the Re/Max banner. The company is a destination for high-producing agents because it has a higher payout ratio for commissions than competing real estate brokerage companies. However, the company charges its agents a higher-fixed fee to operate under the Re/Max banner. With this structure, real estate agents who have high productivity and...READ MORE 


October 31, 2014: Florists' Transworld Delivery Companies (FTD) 

               
FTD Companies is a floral and gifting company. The company is best known for the FTD Network through which consumers can order flowers at their local floral shop for delivery to the recipient in another city. The local florist takes the order, collects payment, and transmits the order over the FTD Network to a florist in the recipient’s city who delivers the flowers. The FTD Network is an attractive asset-light business with a network effect giving FTD a defensible competitive advantage. FTD went public in November ...READ MORE 


October 28, 2014: Janus Capital Group (JNS) 

               
Janus Capital Group, Inc. (JNS), the well-known mutual fund company, recently hired Bill Gross from PIMCO. We believe this is a transformational event in the company’s history. Although the stock price is up on this news, we believe it does not fully reflect the increased value from the addition of Bill Gross. Therefore, we think JNS’s stock presents an interesting asymmetrical risk/reward opportunity at current prices. Investment Thesis: Hiring of Bill Gross is a transformational event: Bill Gross is the.. READ MORE 


August 13, 2014: CIFC Corp. (CIFC) 

               
CIFC creates and manages collateralized loan obligations (“CLOs”). CIFC originally went public as Deerfield Triarc Capital in 2005. Prior to the financial crisis, the company used its own balance sheet to invest in equity tranches of its own CLO and collateralized debt obligation (“CDO”) deals. This did not work out well in 2008, and the company suffered serious losses. However, because the company used structured securities instead of short-term debt to get leverage, the company did not have any liquidity issues and ... READ MORE


March 12, 2014: Zions Bancorporations Warrants (ZIONW & ZIONZ)

               
We own warrants in Zions Bancorporation (Zions or “ZION”) for our clients. While the price of the warrants is very volatile, Gator Capital Management believes they present an interesting asymmetrical risk/reward situation that could produce high returns. Gator originally purchased ZIONZ when the Treasury auctioned their holding into the market. Since then, they have added to the position as the Fund has had in-flows. Zions actually has two warrant issues outstanding: ZIONW and ZIONZ. Both are listed on the NYSE ...READ MORE


September 9, 2013: Ambac Financial Group, Inc. (AMBC)

               
Ambac is a monoline municipal bond insurance company. During the 2002-08 timeframe, Ambac wrote credit default swaps on collateralized debt-obligations (or “CDOs”) and insured non-agency mortgage bonds (or “RMBS”). The losses from this diversification forced Ambac to seek bankruptcy protection in 2010. In bankruptcy, Ambac’s debt was converted into equity and the old shareholders were wiped out. Ambac emerged from bankruptcy on May 1, 2013. Post-bankruptcy, Ambac presents an interesting...READ MORE


May 21, 2013: M&A in the Banking Sector  

               
One important way Gator Capital is different from other investment managers that specialize in the Financials sector is that our portfolio has a much smaller position in mid‐sized regional banks. The difference in our view is that we are negative on the prospect for widespread banking M&A.Despite more than 7,000 banks still existing in the U.S., M&A activity among banks has been subdued. Through Q1 2013, there were only 44 bank M&A deals valued at a total of $1.8 billion. If this run‐rate continues, full year...READ MORE


March 6, 2012: GSE Preferred Stock  

               
One important way Gator Capital is different from other investment managers that specialize in the Financials sector is that our portfolio has a much smaller position in mid‐sized regional banks. The difference in our view is that we are negative on the prospect for widespread banking M&A.Despite more than 7,000 banks still existing in the U.S., M&A activity among banks has been subdued. Through Q1 2013, there were only 44 bank M&A deals valued at a total of $1.8 billion. If this run‐rate continues, full year...READ MORE