This separately managed account program is a joint venture between ELCO Management Co., LLC (ELCO) and Mendon Capital Advisors (Mendon). It is a proprietary investment strategy in which WAM is the subadvisor and ELCO the manager.
Mendon will primarily provide ELCO with their recommendations of selected financial institutions, which, in their opinion, are positioned to principally benefit from mergers and acquisitions. ELCO is offering separately managed accounts for investors seeking investment opportunities in this niche space. We believe that over the next three to five years, with the proper selections, substantial capital appreciation is possible. Anton Schutz and his team at Mendon has focused on the financial services industry since 1996. Mr. Schutz is quoted often in the Wall Street Journal and Barron’s. He also appears frequently as a guest on CNBC, Fox and Bloomberg.
Mendon Capital will focus primarily on regional and larger community banks rather than the major money centers. The emphasis is on institutions that have strong and or improving balance sheets with access to the capital markets, seasoned managements, acquisition know-how and minimal credit quality issues. From time to time, Mendon will also select other banks that offer capital gains as a result of mispricing in secondary offerings.