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Basswood Capital Management, L.L.C.
Matthew Lindenbaum · Hedge Fund · Long/Short Equity
Basswood Capital Management, L.L.C. is a New York-based investment management firm founded in 1998 by brothers Matthew and Bennett Lindenbaum. The firm specializes in the financial services sector, with a deep expertise in community and regional banks. Basswood employs a fundamental, research-intensive approach to identify undervalued opportunities, primarily through long/short equity and value-oriented strategies. Over its history, the firm has managed a variety of private investment funds and separately managed accounts for institutional and high-net-worth clients, occasionally participating in shareholder activism to unlock value within its bank-focused portfolio. Today, it remains a prominent specialist in financial industry investing, driven by a commitment to rigorous bottom-up analysis and capital preservation.
Simulated Performance
| Metric | Value |
|---|---|
| Total return | +11.5% |
| YTD return | +3.0% |
| Sharpe ratio | 3.23 |
| Win rate | 63% |
| AUM | $1.2B |
| Inception | Oct 1, 2025 |
| Updated | Sep 21, 2026 |
Institution Status
| Field | Value |
|---|---|
| AUM | $1.2B |
| Turnover | Low (<15%) |
| Avg holding | 18 Months |
| Inception | Oct 1, 2025 |
| Website | https://www.basswoodpartners.com |
Current Holdings
Updated on Sep 21, 2026.
| Ticker | Name | Portfolio % | Return |
|---|---|---|---|
| JPM | JPMorgan Chase & Co | 13.8% | +13.3% |
| BAC | Bank of America Corp | 10.9% | +10.1% |
| USB | U.S. Bancorp | 7.0% | +24.0% |
| MS | Morgan Stanley | 6.6% | +24.7% |
| RKT | Rocket Companies Inc | 5.4% | -23.2% |
| DCOM | Dime Community Bancshares Inc | 5.1% | +29.6% |
| COF | Capital One Financial Corporation | 4.7% | -3.5% |
| OMF | OneMain Holdings Inc | 4.5% | +8.7% |
| FCNCA | First Citizens BancShares Inc | 4.2% | +16.8% |
| BPOP | Popular Inc | 4.1% | +21.8% |
| WFC | Wells Fargo & Company | 4.1% | +0.3% |
| SYF | Synchrony Financial | 4.0% | -4.6% |
| ONB | Old National Bancorp | 3.8% | +13.0% |
| ESQ | Esquire Financial Holdings Inc | 3.6% | +8.2% |
| PNFP | Pinnacle Financial Partners, Inc. | 3.4% | -1.2% |
| TOL | Toll Brothers Inc | 3.3% | -4.2% |
| IVZ | Invesco Plc | 3.2% | +7.5% |
| VCTR | Victory Capital Holdings Inc | 3.2% | -0.9% |
| SFNC | Simmons First National Corporation | 2.5% | -4.5% |
| SSB | SouthState Corporation | 2.5% | -2.7% |
Recent activity
| Date | Action | Ticker | Weight |
|---|---|---|---|
| Sep 7, 2026 | BUY | SYF | 4.0% → 4.0% |
| Sep 7, 2026 | BUY | IVZ | 3.2% → 3.2% |
| Sep 7, 2026 | SELL | RKT | 5.4% → 5.4% |
| Sep 7, 2026 | SELL | USB | 7.0% → 7.0% |
| Sep 7, 2026 | BUY | BAC | 10.9% → 10.9% |
Investment Style Analysis
Basswood Capital Management, L.L.C. is widely recognized for employing a Long/Short Equity strategy. As of Sep 21, 2026, the firm oversees approximately $1.2B in assets under management (AUM). The portfolio demonstrates a clear preference for the Banks - Regional and Banks - Diversified sectors, reflecting a high-conviction approach to capital allocation.
Recent Market Moves
During the latest rebalancing period ending Sep 7, Basswood Capital Management, L.L.C. made a significant move by increasing exposure to SYF. This adjustment aligns with the fund's dynamic approach to risk management and capital deployment in current market conditions.
Investment Philosophy
The core investment philosophy of Basswood Capital Management centers on fundamental research and deep sector specialization within the financial services industry. The firm seeks to generate superior risk-adjusted returns by identifying market inefficiencies in the banking sector, particularly among undervalued regional and community banks. Its strategy combines a long-term value orientation with the flexibility of long/short positioning to navigate market cycles. Basswood prioritizes thorough bottom-up analysis, often engaging with management teams and utilizing its extensive industry knowledge to build a concentrated portfolio of high-conviction ideas. This research-driven approach is designed to achieve capital appreciation while maintaining a disciplined focus on risk management and downside protection.
Disclaimer
The content provided on this page, including the simulated portfolio performance, holdings analysis, and AI-generated insights, is for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any securities. All data is derived from historical SEC 13F filings and other public disclosures, which have a reporting lag. The "Simulated Performance" is a hypothetical reconstruction based on past disclosures and does not represent the actual returns of the institution. Past performance is not indicative of future results. Tritonix.ai is not affiliated with Basswood Capital Management, L.L.C..
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Frequently asked questions
How is the simulated portfolio for Basswood Capital Management, L.L.C. constructed?
This simulation is powered by Tritonix AI using official SEC filings. We focus on the "Best Ideas" by filtering for only the Top 20 largest holdings and rebalancing them to 100%. The simulation tracks performance starting from Oct 1, 2025. Our AI monitors for updates every Monday to capture major shifts. This concentrated approach highlights the manager's true stock-picking skill and mirrors their actual investment returns.
What is Basswood Capital Management, L.L.C.'s largest holding?
As of the latest filing, Basswood Capital Management, L.L.C.'s top position is JPMorgan Chase & Co (JPM), representing 13.8% of the portfolio. This reflects a high-conviction bet by the institution.
What is Basswood Capital Management, L.L.C.'s historical performance and risk profile?
Our simulation indicates a total return of +11.5% with a win rate of 63%. Notably, the portfolio maintains a Sharpe Ratio of 3.23, suggesting an exceptional level of risk-adjusted returns compared to the broader market.
What sectors does Basswood Capital Management, L.L.C. primarily invest in?
Basswood Capital Management, L.L.C. has a strong preference for the Banks - Regional sector, which makes up 36.3% of their disclosed assets. The portfolio also has exposure to Banks - Diversified, indicating a specific thematic focus.
Is Basswood Capital Management, L.L.C.'s portfolio concentrated or diversified?
Basswood Capital Management, L.L.C. runs a moderately concentrated portfolio with 20 disclosed positions. The top 3 holdings alone account for 31.7% of the total portfolio weight, suggesting a strategy that favors broader market exposure.
How has Basswood Capital Management, L.L.C. performed in 2026?
Our AI-simulated model portfolio for Basswood Capital Management, L.L.C. tracks a Year-to-Date (YTD) return of +3.0%. This metric helps investors gauge the institution's effectiveness in the current market environment.
Does Matthew Lindenbaum manage Basswood Capital Management, L.L.C. directly?
Yes, Matthew Lindenbaum serves as the key portfolio manager for Basswood Capital Management, L.L.C., overseeing the investment strategy and final capital allocation decisions.