At its core, banking is not simply about profit, but about personal relationships.”Felix Rohatyn
What is the Pendragon Bank Investor Portfolio?
The Pendragon Bank Investor portfolio is a separately managed brokerage account with investments primarily in community banks and financial service companies.
>> Learn about the Fundamentals of Investing in Banks
Who should invest in the Bank Investor Portfolio?
This portfolio is attractive for an investor with a plan already in place, and who is looking for a niche opportunity with managers who have specialized knowledge.
Who manages the account?
Ian Green is the portfolio manager for Pendragon’s Bank Investor Portfolio. Ian has been a registered investment advisor since 1997. Ian is a CPA and is a member of the AICPA Personal Financial Planning section. He holds a BS in accounting and economics from Marist College and an MBA in finance from Columbia University. Pendragon Capital Management, Inc. exercises discretionary authority over buying and selling securities in the account.
MBA (Finance) Columbia University
BS (Accounting/Economics) Marist College
CPA, New York
In what types of instruments will the manager invest?
The manager will invest in US and non-US Banks and Financial Services companies that:
- Will participate as buyer or seller in the consolidation trend
- Have strong management
- Trade at attractive valuations
- Exhibit strong or improving profitability, credit quality, and capital
- Leverage technology to enhance operations, profitability, and customer reach
- May be outside of traditional banking but offer opportunities in real estate, insurance, fintech, and holding companies
The investments will emphasize publicly traded securities like common stock, preferred stock, master limited partnerships, and bonds. The manager can use derivatives like options to hedge, enhance income, and/or speculate.
>> Download the Mid-Year Letter to Shareholders
When the local people put money in a bank like this, they know that it understands their community and its opportunities. Its loans and activities, in turn, help to further the community’s economy.”John F. Kennedy
What are the fees associated with the Bank Investor Portfolio?
Pendragon Capital Management generally charges a 1% management fee, paid quarterly based on the quarter-end account value. In addition, the investor will pay other fees such as trade commissions and other ancillary brokerage or clearing firm charges.
What are the risks associated with investing in the Bank Investor Portfolio?
All investing involves risk. Investors can lose all or part of their principal. The overall market is volatile. While the strategy invests in predominantly established companies, some companies are small and new.
Government regulations greatly influence the financial services space. Government policy can change and have a dramatic impact on business models.
Holdings can be non-US firms. As such, other risks such as currency exchange rates are present.
Can the Bank Investor Portfolio be held in a retirement account?
Yes, Pendragon’s balanced strategy can be used in retirement accounts
Is there a minimum investment to open the Bank Investor Portfolio Account?
Yes, the minimum investment for the Bank Investor Portfolio is $100,000. For investors with less to invest, Pendragon Capital would refer you to its affiliate, BrokerageSelect (www.brokerageselect.com) for an investment strategy using mutual funds.
What are the applicable safeguards?
While there is no protection against market losses, the Bank Investor Portfolio exists in a brokerage account at a FINRA SIPC member securities broker-dealer.
The broker-dealer employs a third-party clearing firm to hold all client assets and send trade confirmations and monthly statements to clients. Please see SIPC protections on the SIPC website (www.sipc.org).
In addition, our clearing firm, Wedbush Securities, Inc. provides private insurance up to $25 million per customer to protect against fraud or bankruptcy.