Context Capital Partners has launched a hedge fund focused on the banking sector.
Context BH Partners will invest in securities (primarily U.S. equities) issued by banks “well-positioned to take advantage of the continued flux in the industry," particularly "the resurgence of healthy bank consolidation."
Co-managed by Robert Hendershott and Ryan Zaffuto, the fund employs a relative-value investment approach with the flexibility to invest both long and short. Hendershott and Zaffuto manage two private equity funds that employ a similar investment strategy. Hendershott’s prior experience includes sub-advising a long-short hedge fund that invested in community bank stocks and sub-advising a family office on a private equity portfolio. Said Hendershott in a statement:
“There are five years of pent-up consolidation in the community banking industry, along with new capital requirements coming online in the next few years. The industry needs to evolve to redeploy resources, and investors in the right banks have tremendous upside.”
Pennsylvania-based Context Capital Partners provides seed and acceleration capital to alternative investment vehicles, including private equity and hedge funds.