Community Financial Institutions Fund

Community Financial Institutions Fund

Community Financial Institutions Fund (CFIF) is a long-biased investment partnership that invests in the common equity of publicly traded U.S. community banks.

Its portfolio managers believe this space will outperform the broader stock market over the long-run, primarily as a result of consolidation and the industry’s strong financial position. Led by a former industry insider and top ranked sell-side analyst, CFIF maintains a concentrated portfolio of typically 15-20 companies, placing a heavy emphasis on fundamental bottoms-up analysis and management quality. Under this concentrated approach, the investment team has been able to consistently generate alpha through the achievement of superior company-specific knowledge. The three characteristics that define our investments are: 1) better-than-peer Core Value growth (proprietary concept), 2) superior takeout potential, and 3) reduced market risk/correlation as measured by portfolio beta and standard deviation.

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Frederick “Ted” C. Peters II, Portfolio Manager

Mr. Peters serves as Chairman and CEO of Community Financial Institutions Fund. Previously, Mr. Peters served as Chairman and Chief Executive Officer of Bryn Mawr Bank Corporation (BMTC) and The Bryn Mawr Trust Company from January 2001 through December 2014. Under his leadership, the Bank increased from $420 million in banking assets to almost $3 billion. At the same time, the Wealth Services group at Bryn Mawr Trust grew from approximately $1.4 billion in assets under management and administration to over $7.6 billion. Full-service banking offices rose during this same time period from 5 to 29. Prior to joining Bryn Mawr Bank Corporation, Mr. Peters founded and served as the CEO of two community banks. National Bank of the Main Line was opened in March 1985 and was twice named the most profitable de novo bank in the Eastern United States. It was sold to Keystone Financial (now M&T) in 1992 for approximately 6x the price of an original investment. In 1995 he founded the highly successful First Main Line Bank which in 2001 was folded into National Penn Bank. During his banking career, he originated and closed nine acquisitions in the banking and wealth spaces. He is currently the lead director and Chairman of the Audit Committee of Paycom Software, Inc., an NYSE listed company located in Oklahoma City. Mr. Peters served on the Board of the Federal Reserve Bank of Philadelphia from 2009 through 2014. He chaired the Audit Committee of that Bank for two years and concurrently served on the Committee of Federal Reserve Audit Chairs in Washington, D.C. In addition, he has served on numerous nonprofit, educational, and trade association boards over his career. He is a cum laude graduate of The Haverford School and has a B.A. in Political Science from Amherst College.

Jason D. O’Donnell, Portfolio Manager

Mr. O’Donnell serves as Chief Investment Officer of Community Financial Institutions Fund. He previously served as Principal and Director of Research at Merion Capital Group since March 2012 where he was responsible for directing the company’s research strategy and covering publicly traded small and mid-cap banking institutions. Prior to Merion Capital Group, he was Director of Research and a Senior Research Analyst at Boenning & Scattergood, a brokerage and investment bank based in Conshohocken, Pennsylvania. At Boenning & Scattergood, his coverage focused on small and mid-cap banks located primarily in the Mid-Atlantic and New England regions. He previously conducted equity research at Financial Stocks, Inc., a hedge fund and private equity concern based in Cincinnati, Ohio, and at Ryan Beck & Co. Mr. O’Donnell was ranked #1 out of 113 analysts by StarMine for EPS Estimate Accuracy in the commercial banks category. Mr. O’Donnell has been quoted in numerous publications, including Barron’s, Business Week, CBS News, CNN Money, The Wall Street Journal, and USA Today. Furthermore, he has been credited with developing three major financial concepts specific to the fundamental analysis of banking institutions: the Failure Ratio, Success Ratio, and Core Value. He holds a BA from Franklin & Marshall College and an MBA from the Graduate School of Management at Rutgers University. In addition, he is an active member of Mensa International.

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Jason D. O’Donnell
Chief Investment Officer

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