Citadel et al go bargain bank hunting
Several hedge funds including Citadel have been buying up shares in smaller banks, after the failure of Silicon Valley Bank and Signature Bank triggered a banking sector stock sell-off, according to a report by Reuters.
The report cites a regulatory filing made by Citadel on Tuesday as revealing that the firm has acquired a 5.3% stake in Western Alliance Bancorporation.
Rob Mills meanwhile, an associate portfolio manager at Anson Funds Management, told Reuters that the $1.6 billion firm had bought an undisclosed number shares of First Republic Bank on Monday.
Western Alliance's share price jumped as much as 46% on Tuesday following a steep decline on Monday, while First Republic shares have rebounded 33% but are still down 63% over the last five days.