U.S. Money Manager Sees Buying Opportunity With Home CapitalBy
Philadelphia Financial bought 1 million shares in past week
Firm sees Home Capital as buyout target for regional banks
At least one investor sees a buying opportunity in Home Capital Group Inc.’s latest woes.
Philadelphia Financial Management of San Francisco, which oversees about $700 million, spent $10 million in the past week buying more than 1 million shares of the Canadian alternative lender, according to managing partner Jordan Hymowitz. He’s betting that Home Capital will be acquired.
“The entire problem here is not an asset-quality issue, it’s purely a liability problem,” Hymowitz said Monday in a telephone interview. “The liability problem solves itself overnight by being acquired by a more stable financial institution.”
Philadelphia Financial has owned shares of Home Capital “several times over the years,” but sold its stake in 2016, Hymowitz said. With shares now trading under C$8 and at 28 percent of book value, the money manager said he’s a buyer again…
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