Greg Dean, CFA
Esquire Financial
ESQ-Q
BUY
Feb 13, 2025
US bank recommendation.
Note that he's allergic to leverage, and most banks leverage up to give that 12-15% ROE. So he doesn't really love the business model.
This name is small, under $1B, no analyst coverage. Lots of respect for management, should continue to do well. Lends almost exclusively to law firms. Law firms pay out almost all their capital as partner distributions, so they need working capital at times to manage the business.
Note that he's allergic to leverage, and most banks leverage up to give that 12-15% ROE. So he doesn't really love the business model.
This name is small, under $1B, no analyst coverage. Lots of respect for management, should continue to do well. Lends almost exclusively to law firms. Law firms pay out almost all their capital as partner distributions, so they need working capital at times to manage the business.