Basswood Capital Management, L.L.C.

Basswood Capital Management advises private investment funds and institutional separately managed accounts, offering discretionary management across long/short and long‑only financials strategies, a Liquid Credit strategy, and structured co‑investment opportunities. Clients described in the brochure include institutional investors such as pension and profit‑sharing plans, funds of funds, family offices and charitable organizations, and separate account terms (including fees and liquidity) are negotiated individually.

The firm’s investment approach is value‑oriented and research‑driven, concentrating portfolios in the financial services sector while using equities, debt, and derivative instruments to implement views and manage risk. Basswood states that it selectively employs leverage and margin borrowing, and the accounts it manages — including separately managed accounts — are authorized to use derivatives, short positions and borrowing for investment and hedging purposes.

Distinctive elements in the brochure include a formal co‑investment program for limited‑capacity positions and a Liquid Credit strategy targeting Additional Tier 1 subordinated bonds and U.S. bank preferreds, reflecting a sector‑specialized emphasis. The firm also describes tax‑aware trading decisions for onshore funds, the possibility of portfolio managers serving on issuer boards, and a practice of waiving fees for principals’ investments, all of which can affect allocation and governance considerations.