The Fund’s regional South Korean banks, DGB Financial Group and BS Financial, were two of the top-performing stocks for the recent quarter. BS Financial (XKRX:138930)’s proposed acquisition of another small regional bank, Kyongnam Bank, would be a strategic use of capital that could further enhance the company’s competitive position, should the deal close. We also think BS’s strong deposit franchise gives it a significant funding advantage over its peers and should generate substantial profitability once interest rates normalize. We continue to believe the valuation of this high quality regional bank with dominant market share remains attractive, offering a compelling reason to own.
From David Herro (Trades, Portfolio)'s Oakmark International Small Cap Fund Third Quarter 2014 Letter.
Also check out:
