Boston Private Financial Holdings, Inc. (BPFH, Financial) is a bi-coastal private bank and wealth manager forhigh-net-worth individuals. We became involved with the stock given the risk/reward opportunity at the time: trading at tangible book but with an audacious goal to expand wealth assets threefold under a new management team sporting a background of performing similar moves for significantly larger institutions. The low valuation was on account of limited public company experience exhibited by that management team, as targets were conveyed absent a clear timetable, which only led to investor disappointment. As investors grew impatient with the rate of traction against those stated goals, the company sold itself this past quarter. The all-stock deal was to a former holding of ours, SVB Financial (SIVB), and has taken the stock to our upside target. The fit is an appropriate one for both the business and leadership remaining with the organization.
From Keeley Teton Small Cap Select Value Fund's first-quarter 2021 commentary.