A Modest Adjustment: Shaker and Wintrust

by

One gathers that Shaker Investments, a fund not entirely averse to a bit of portfolio housekeeping, recently decided to lighten its holdings in Wintrust Financial. A rather brisk exit, actually – 26,185 shares, amounting to approximately $3.47 million, dispatched with a distinct lack of fanfare. One suspects the accountants barely blinked.

A Spot of Pruning

The SEC filing, dated January 30th, confirms the complete disposal of Shaker’s stake in Wintrust. A tidy sum vanished, naturally, though one assumes the fund has other irons in the fire. The reduction in assets under management came to 1.44%, which, while not precisely ruinous, is enough to warrant a raised eyebrow and a murmured enquiry as to the reasoning.

The New Landscape

Following this little adjustment, Shaker’s affections now lie more prominently with NYSE: AX ($32.63 million, a rather substantial 13.6% of AUM), NASDAQ: AVGO ($12.76 million), NASDAQ: NVDA ($12.72 million), and the usual suspects – GOOGL and MSFT. One notes a distinct preference for the larger, more…reliable establishments. Perfectly understandable, of course. One prefers a solid foundation oneself.

As of January 29th, Wintrust was trading at $147.90, a respectable 13.2% gain over the year, but lagging, shall we say, the more exuberant performance of the S&P 500 by a couple of percentage points. Not a disaster, certainly, but hardly a triumph either.

A Brief Profile

Wintrust Financial, for those unfamiliar, is a regional financial holding company, offering a rather comprehensive range of services – community banking, specialty finance, wealth management. They seem to thrive on deposits, loans, and the general business of managing other people’s money. A perfectly legitimate pursuit, one supposes. They operate primarily in the Midwest and Florida, serving a diverse clientele. A perfectly respectable footprint, wouldn’t you agree?

Metric Value
Revenue (TTM) $2.73 billion
Net income (TTM) $823.84 million
Dividend yield 1.35%
Price (as of January 29) $147.90
  • Wintrust Financial Corporation offers community banking, specialty finance, and wealth management services.
  • The company operates a diversified business model generating income through net interest margins, fee-based services, and specialty lending.
  • It serves individuals, small to mid-sized businesses, local government units, and institutional clients.

The Rationale, or Lack Thereof

This exit, one suspects, isn’t a condemnation of Wintrust, merely a statement of preference. Shaker appears to be consolidating its holdings in sectors offering more…robust growth prospects. One observes a distinct leaning towards industrials and mega-cap technology. Perfectly logical. Why fuss with a perfectly adequate regional bank when one can have a slice of the future?

Wintrust’s earnings, while steady, are tethered to the vagaries of net interest margins and deposit costs – a tiresome business, really. The stock’s performance, while respectable, lacked the exuberance of the broader market. A perfectly competent performance, but hardly a cause for champagne.

In short, Shaker seems to be favouring names with dominant market positions and longer growth runways – a sensible strategy, wouldn’t you say? One always prefers a clear path to profitability, even if it means leaving a perfectly good bank behind. It’s simply a matter of priorities, darling. A matter of priorities.

Read More

2026-02-02 01:42