Hedge fund M3 Partners of Salt Lake City notched its best returns during the financial crisis, gaining more than 32% in 2008 and 2009. This year has been a different story.
Bets it made on a swath of highly-capitalized community banks have backfired as banks have sold off broadly. The sector has been crushed by the pandemic, as lower rates dent lending margins for the industry and concerns about possible loan losses have proliferated. Fund liquidations and forced selling have added further downward pressure on bank stocks.
Read More: The Latest Pain Trade on Wall Street: Banks